When you’re considering purchasing a car beyond the traditional gasoline-powered models, you’re looking at hybrid vs. electric and other alternative-fuel vehicles in Des Moines. One enticing advantage to make the switch is the Iowa EV tax credits and incentives. What are EV tax credits? They are there to lower your taxable income when you purchase an electric model. Some are rebates instead. You can find available EV tax credits and rebates from the federal government, state government, and even private institutions. Find out more about these Iowa electric vehicle tax incentives below!
If you’re buying a qualified new EV after after December 31, 2009, you may be able to earn the federal tax credit, which starts at a minimum of $2,500 and can go up to $7,500, depending on the model’s traction battery capacity and gross vehicle weight rating. Other requirements of a qualifying EV also include:
One thing to keep in mind as you’re trying to see if you can qualify for this EV tax credit is that you must owe a certain income tax near Waukee in order to possibly earn that amount.
While Iowa also has some programs, they’re geared towards businesses or entities unlike the federal EV tax credit that is for individuals. Here are the two current Iowa EV tax credit and 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). They fund purchases for 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:
The alternative fuel production tax credits or known as the High Quality Jobs Program offers state tax incentives to business projects for the production of biomass or alternative fuels. Possible incentives include:
You will also find EV incentives from private companies in West Des Moines and nearby area. The prominent one would be MidAmerican Energy’s Plug-In Electric Vehicle (PEV) Rebate. When you buy or lease of a new qualifiying PEV for personal use, you may earn a rebate of $500 from MidAmerican Energy. Here are the qualifications for this rebate:
After discovering the various federal and Iowa EV tax credits and incentives, find a qualifying model from Volkswagen of Des Moines if you don’t have one already! We have the new Volkswagen ID.4 and will have future models in our Johnston lot as they’re released. Feel free to contact our finance team for more information about EV tax credits and programs that you may be eligible for!
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