Iowa Policy Data

Summary

	While Iowa's primary alternative fuel focus for the past decade has been ethanol and biofuels, they have incorporated natural gas into their incentive programs and legislation. The state currently has only a few stations, and thereby no countable natural gas vehicles. Iowa offers state "demonstration" grants for the purchase of AFVs, and a loan program for the building of infrastructure at up to 50% of the costs. Iowa also offers loans and state tax credit programs for alternative fuel production projects. The state has AFV purchase/conversion requirements for may of its state agency fleets. Bi-fuel conversion vehicles must be registered within 30-days of the conversion and obtain a fuel identification sticker from the county of residence.

Vehicles

Current Estimated Fleet-based NGVs in Iowa

~0

Vehicles by Fuel Type

Stations

Current Public NGV Fueling Stations - 8

Private NGV Fueling Stations - 1

Fuel Taxes

Iowa Motor Fuel Taxation Website

CNG - 31.0 ¢ / 100 Cubic Foot** - Reference

LNG - 32.5 ¢ / Gallon **

Gasoline - 21.0 ¢ / Gallon - Reference

Diesel - 22.5 ¢ / Gallon

**SB-257 - Increases taxes on motor fuels by 10 cents including on CNG and LNG. Effective March 1, 2015

IFTA - IFTA taxes are applied to vehicles of 3+ axles, or weighing more than 26,000 pounds. IFTA tax tables can be found here.

Incentives

Alternative Fuel Production Tax Credits

The Enterprise Zone Program and the High Quality Jobs Program offer state tax incentives to business projects for the production of biomass or alternative fuels. Depending on the program, incentives may include: an investment tax credit equal to a percentage of the qualifying investment, amortized over five years; a refund of state sales, service, or use taxes paid to contractors or subcontractors during construction; a doubling of the state's refundable research activities credit; additional funding for training new employees; and a local property tax exemption of up to 100% of the value added to the property.

Point of Contact
Business Finance Program
Program Coordinator
Iowa Department of Economic Development
Phone: (515) 725-3133
Fax: (515) 725-3010
businessfinance@iowa.gov
http://www.iowalifechanging.com

Laws & Regs

Legislative Session Dates:	January 13 - May 1
Legislature Website:	https://www.legis.iowa.gov/

Alternative Fuel Vehicle (AFV) Acquisition Requirements

At least 10% of new light-duty vehicles purchased by institutions under the control of the state fleet administrator, Iowa Department of Transportation administrator, board of directors of community colleges, state board of regents, commission for the blind, and department of corrections must be capable of using alternative fuels. Vehicles and trucks purchased and directly used for law enforcement, off-road maintenance work, or to pull loaded trailers are exempt from this requirement. (Reference Iowa Code 8A.362, 216B.3, 260C.19A, 262.25A, 307.21 and 904.312A)

Alternative Fuel Vehicle (AFV) Conversion Registration

When a motor vehicle is modified to use a different fuel type or to use more than one type of fuel, the vehicle's registered owner must notify the county treasurer of the new fuel type or alternative fuel types within 30 days. If the vehicle uses, or may use, a special fuel, the county treasurer will issue a special fuel identification sticker. (Reference Iowa Code 321.41)

Alternative Fuel Tax

Compressed natural gas used as a special motor fuel is subject to the state fuel excise tax rate of $0.21 per gasoline gallon equivalent, measured at 5.66 pounds or 126.67 cubic feet at a base temperature of 60 degrees Fahrenheit and a pressure of 14.73 pounds per square inch. Liquefied natural gas is subject to the excise tax at the rate of $0.225 per diesel gallon equivalent, measured at 6.06 pounds. (Reference Reference - SB2338 Bill History, and Iowa Code 452A.2)

(Reference Iowa Code 321.41)

Proposed Bills

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2016 Session - Proposed Legislation

SSB-2319

Successor to SB 143 and SB 483. Tax credit for electric, natural gas, or propane vehicle fueling facilities. Credit is 30% of cost of purchasing qualified equipment and installing or constructing it; credit may be claimed on an agricultural, commercial, or residential basis. Non-residential credit must be claimed in three increments over three years; appears to make any remaining balance refundable. The residential credit is only for electric infrastructure. A maximum of $5 million is authorized for this credit; taxpayers must apply to Dept. of Revenue for credit certificates. Credit only good for fueling stations installed in 2017 - 2019. Includes a no double credit provision - can't depreciate or expense property under Iowa tax law and also claim tax credit. The $5 million includes clause limiting $2 million for natural gas, $2 million for electric, and $1 million for propane.Reference - SB2319 Bill History, Reference - SB2319 Bill Text

2015 Session - Proposed Legislation

HSB-193

Amends various provisions relating to taxes on motor fuels including changes to CNG and LNG treatment that do not appear to be substantive. Reference - HSB193 Bill History, Reference - HSB193 Bill Text

HSB-216

Tax credits for electric and natural gas infrastructure. Appears to be same bill as SB 143. Reference - HSB216 Bill History, Reference - HSB216 Bill Text

HB-83

Amends the motor fuel and special fuel taxes so that it is based ona percentage of the wholesale price of fuels. The rate initially will be set using a figure that computes with the current tax rates of 20 and 22.5 cents. Not sure about future increases as this does not appear to be addressed. Reference - HB83 Bill History, Reference - HB83 Bill Text

SB-143

Tax credit for electric or natural gas vehicle fueling facilities. Credit is 30% of the cost of purchasing qualified equipment and installing or constructing it; credit may be claimed on an agricultural, commercial, or residential basis. Non-residential credit must be claimed in three increments over three years; appears to make any remaining balance refundable. The residential credit is only for electric infrastructure. A maximum of $5 million is authorized for this credit; taxpayers must apply to Dept. of Revenue for credit certificates. Credit only good for fueling stations installed in 2015 - 2017. Includes a no double credit provision - can't depreciate or expense property under Iowa tax law and also claim tax credit. The $5 million includes clause limiting $2 million for natural gas and $2 million for electric with $1 million to be used by either at later time. Reference - SB143 Bill History, Reference - SB143 Bill Text

SB-257

Increases taxes on motor fuels by 10 cents including on CNG and LNG. The rate would go from $0.21 to $0.31 for CNG and 32.5 cent for LNG. The law says it takes effect the first day of the month following enactment. Reference - SB257 Bill History, Reference - SB257 Bill Text Enacted 2/25/15 - active 3/1/2015

SB-396

Amends requirements for fueling stations to add requirement for future sites or improvements at existing sites that they comply with the ADA law. This includes providing assistance in some cases. Provides tax credit of $500 per location for complying with changes. Reference - SB396 Bill History, Reference - SB396 Bill Text

SB-483

Succesor to SB 143. Tax credit for electric or natural gas vehicle fueling facilities. Credit is 30% of the cost of purchasing qualified equipment and installing or constructing it; credit may be claimed on an agricultural, commercial, or residential basis. Non-residential credit must be claimed in three increments over three years; appears to make any remaining balance refundable. The residential credit is only for electric infrastructure. A maximum of $5 million is authorized for this credit; taxpayers must apply to Dept. of Revenue for credit certificates. Credit only good for fueling stations installed in 2015 - 2017. Includes a no double credit provision - can't depreciate or expense property under Iowa tax law and also claim tax credit. The $5 million includes clause limiting $2 million for natural gas and $2 million for electric with $1 million to be used by either at later time. Reference - SB483 Bill History, Reference - SB483 Bill Text Status: to Senate Ways and Means 1/13/16.

SSB-509

Amends requirements for fueling stations to add requirement for future sites or improvements at existing sites that they comply with the ADA law. This includes providing assistance in some cases. Provides tax credit of $500 per location for complying with changes. Successor to SF 396. Reference - SB509 Bill History, Reference - SB509 Bill Text

SSB-1227

Companion to HSB 193. Amends various provisions relating to taxes on motor fuels including changes to CNG and LNG treatment that do not appear to be substantive. Reference - SB1227 Bill History, Reference - SB1227 Bill Text

2014 Session - Proposed Legislation

HB-2414

Adjusts the motor fuels and special fuels tax so that they are based on average wholesale price. Not clear what is intended here because does not appear to trigger any requirement to adjust upward in future with increases in prices. Reference - HB2414 Bill History, Reference - HB2414 Bill Text Pending: House Transportation Committee

HB-2441

Imposes tax of 21 cents per GGE of CNG using 5.66 lbs and tax of 22.5 cents for LNG using DGE of 6.06 lbs.Reference - HB2441 Bill History, Reference - HB2441 Bill Text Withdrawn from further consideration 3/18/2014

HSB-661

Amends the motor fuel tax and special fuel tax by reducing current rates from 20 cents and 22.5 cents down to 16 cents and 18 cents with an additional 5% tax based on the price charged by the supplier that is on top of the base tax but not including the base tax. This would go into effect July 1, 2014.Reference - HSB661 Bill History, Reference - HSB661 Bill Text Pending: House Transportation Committee

SB-2101

Establishes tax rate of 21 cents for CNG per GGE of 5.66 pounds or 126.67 cubic feet and tax rate of 22.5 cents for LNG on a DGE of 6.06 lbs. of LNG. Reference - SB2101 Bill History, Reference - SB2101 Bill Text Action: 2014-02-17 - Fiscal note. SCS.

SB-2308

Same provisions as SB 2101. Imposes 21 cent tax on CNG per 126.67 cubic feet or 5.66 pounds. LNG tax. LNG tax would be 22.5 cents per DGE. Reference - SB2308 Bill History, Reference - SB2308 Bill Text Action: 2014-02-26 - Fiscal note. SCS.

SB-2338

Companion to HB 2441. Imposes tax of 21 cents per GGE of CNG using 5.66 lbs and tax of 22.5 cents for LNG using DGE of 6.06 lbs. Effective July 1, 2014. Reference - SB2338 Bill History, Reference - SB2338 Bill Text Passed Senate 3/18/2014; passed House 3/18/2014; Signed by Governor 3/26/2014

SF-434

Companion to HB 267 in 2013. Tax credit for electric or natural gas vehicle fueling facilities. Credit is 30% of the cost of purchasing qualified equipment and installing or constructing it; credit may be claimed on an agricultural, commercial, or residential basis. Non-residential credit must be claimed in three increments over three years; appears to make any remaining balance refundable. The residential credit is only for electric infrastructure. A maximum of $5 million is authorized for this credit; taxpayers must apply to Dept. of Revenue for credit certificates. Credit only good for fueling stations installed in 2013 - 2015. Includes a no double credit provision - can't depreciate or expense property under Iowa tax law and also claim tax credit. The $5 million includes clause limiting $2 million for natural gas and $2 million for electric with $1 million to be used by either at later time.Reference - SF434 Bill History, Reference - SF434 Bill Text Passed first House 4/09/2013; carried over to 2014 - eligible for the House

2013 Session - Proposed Legislation

HB-59

Energy efficiency measures. The department of administrative services shall report to the general assembly and governor by November 15, 2013, regarding the feasibility of giving preference to or requiring the purchase or lease of passenger cars with a United States environmental protection agency estimated highway-mileage rating of at least thirty-five miles per gallon and electric-powered and natural gas-powered vehicles with a United States environmental protection agency estimated highway-mileage rating of at least forty-five miles per gallon. The preference shall be determined on a fleetwide average basis. Reference - HB-59 Bill History, Reference - HB-59 Bill Text Action: 2013-12-31 - END OF 2013 ACTIONS

HB-267

Tax credit for electric or natural gas vehicle fueling facilities. Credit is 30% of the cost of purchasing qualified equipment and installing or constructing it; credit may be claimed on an agricultural, commercial, or residential basis. Non-residential credit must be claimed in three increments over three years; appears to make any remaining balance refundable. The residential credit is only for electric infrastructure. A maximum of $5 million is authorized for this credit; taxpayers must apply to Dept. of Revenue for credit certificates. Credit only good for fueling stations installed in 2013 - 2015. Includes a no double credit provision - can't depreciate or expense property under Iowa tax law and also claim tax credit. Reference - HB267 Bill History, Reference - HB267 Bill Text Action: 2013-12-31 - END OF 2013 ACTIONS

SB-238

Companion to HB 267 Reference - SB238 Bill History, Reference - SB238 Bill Text Action: 2013-12-31 - END OF 2013 ACTIONS

SB-434

Appears to be companion to HB 267. The $5 million includes clause limiting $2 million for natural gas and $2 million for electric with $1 million to be used by either at later time. Reference - SB434 Bill History, Reference - SB434 Bill TextPassed first House 4/09/2013; Action: 2013-12-31 - END OF 2013 ACTIONS[printfriendly]

This state was last examined and updated in July, 2016.