While more Des Moines drivers are open to the idea of an alternative-fuel vehicle, like an electric car, they are still not as affordable as traditional gasoline-powered models. This is when incentives are appealing! You could possibly earn the federal electric vehicle (EV) tax credit, Iowa EV tax credits and incentives, and private incentives when you specifically buy a new – and not used – model. In this guide, Acura of Johnston will walk you through these different types of incentives, so you can have a better idea of how you can enjoy some savings with the purchase of an EV in Waterloo!
Federal EV Tax Credit
Chances are you’ve probably heard about the federal tax credit that can be anywhere from $2,500 to $7,500 depending on your model’s traction battery capacity and gross vehicle weight rating (GVWR). Mainly, you’ll have to buy a qualified new EV after December 31, 2009 to access this credit to help cover the income tax amount that you owe. So what is considered a qualified model? Here are some of the requirements:
- Draws propulsion using a traction battery that has at least 5 kilowatt-hours (kWh) of capacity
- Uses an external source of energy to recharge the battery
- Has a gross vehicle weight rating (GVWR) of up to 14,000 pounds
- Meets specified emission standards
- Has to be mostly driven in the United States
Does Iowa Offer an Electric Vehicle Tax Credit?
Yes, but the Iowa EV tax credit and funding opportunities are more so for businesses or entities instead of individuals. Take a look at two examples here:
Diesel Emission Reduction Project Funding
Government and non-government entities that own and operate diesel fleets and equipment are eligible for this funding from the Iowa Department of Transportation (IowaDOT). This funding is for purchases of medium- and heavy-duty on-road new diesel, alternative fuel vehicles, or engine repowers and replacements, as well as off-road repowers and replacements. Qualified vehicles and equipment replacement or repower include:
- Model Year (MY) 2009 or older Class 4-8 school buses, shuttle buses, and transit buses
- MY 1992-2009 Class 4-7 local freight trucks
- MY 1992-2009 Class 8 drayage trucks
- Freight switchers, ferries and tugs, marine vessel shore power, airport ground equipment, forklifts, and port cargo handling equipment
Alternative Fuel Production Tax Credits
The alternative fuel production tax credits in Iowa, or also known as the High Quality Jobs Program, offer state tax incentives to business projects for the production of biomass or alternative fuels. Possible incentives include:
- An investment tax credit equal to a percentage of the qualifying investment that is repaid over five years;
- A refund of state sales, service, or use taxes paid to contractors or subcontractors during construction;
- An increase of the state’s refundable research activities credit; and
- A local property tax exemption of up to 100% of the value added to the property.
Private Electric Vehicle Incentive in Iowa
Besides incentives from the government, you will also find some available ones from private institutions that you can enjoy near Cedar Rapids. A major one is the MidAmerican Energy’s Plug-In Electric Vehicle (PEV) Rebate, where you may earn a rebate of $500 from MidAmerican Energy when you buy or lease of a new qualifiying PEV for personal use. To qualify, you’ll need to do the following:
- When you’re submitting your application, you are an active MidAmerican residential electric customer in Iowa who receives electricity from MidAmerican to their primary residence and whose account is in good standing.
- Buy or lease a new electric vehicle with under 3,000 miles between January 1, 2022, and December 31, 2022. Eligible electric vehicles include Battery Electric Vehicles (BEV) or Plug-In Hybrid Electric Vehicles (PHEV). Standard hybrid vehicles, such as the Toyota Prius, are not eligible for this rebate.
- You have completed registration of your electric vehicle with the Iowa Department of Transportation to your primary residence. The name on the registration must match the primary customer’s name, or spouse name, and address on your MidAmerican residential electric account.
- You need to provide a copy of an itemized vehicle invoice with a zeroed-out balance, purchase finance agreement or executed lease contract.
- You also need to provide a copy of the Iowa Department of Transportation registration for the vehicle. Applications for the vehicle registration do not count as proof of registration.
- You must submit a complete rebate application and all required documentation no later than 5 p.m. on January 31, 2023.
Learn More About Polk County EV Tax Credits from Acura of Johnston
Whether you want to learn more about local tax incentives and credits that you can enjoy for buying an EV or you have any questions about any of them, feel free to reach out to the team at Acura of Johnston! We can also keep you in the loop about Acura’s first electric model that is anticipated to arrive sometime in 2024. Curious about how we are doing our part to be more eco-conscious? See our participation in the Acura Green Dealer program!
