Alternative Fuel Tax
Alternative fuels used as vehicle fuel are taxed as follows:
- Compressed natural gas is subject to the state fuel excise tax of $0.31 per gasoline gallon equivalent, measured at 5.66 pounds (lbs.) or 126.67 cubic feet at a base temperature of 60 degrees Fahrenheit and a pressure of 14.73 lbs. per square inch;
- Liquefied natural gas is subject to the excise tax of $0.325 per diesel gallon equivalent (DGE), measured at 6.06 lbs.;
- Propane is subject to the excise tax of $0.30 per gallon;
- E85 is subject to the excise tax of $0.290 per gallon;
- Hydrogen is subject to the excise tax of $0.65 per DGE, measured at 2.49 lbs.; and
- Electricity is subject to the excise tax of $0.026 per kilowatt-hour of fuel delivered or placed into a battery or other energy storage device of an electric motor vehicle at any location in Iowa other than a residence.