Green Driver State Incentives in IowaPage Overview
Iowa offers a few state incentives to encourage green-driving practices. Those who own fuel efficient cars—such as hybrid cars, electric vehicles, and alternative fuel vehicles—might be eligible to save time and money. For more on how going green can save you some green, keep reading.
Keep in mind that the eco-friendly perks and laws specific to driving might evolve. Two additional resources worth consulting are your local Motor Vehicle Division (MVD) branch and the Alternative Fuels Data Center.
At this time, the Iowa Motor Vehicle Division does not require emissions testing for first-time IA vehicle registration or car registration renewal. But this does not mean Iowa is unconcerned about global warming. To help lower your carbon footprint Iowa's Department of Transportation (DOT) strongly encourages green driving practices, which includes investing in fuel efficient cars.
To learn more about how you can reduce the effects of smog, visit our Iowa Smog & Emission Checks page.
Iowa taxpayers who drive eco-friendly vehicles might be eligible for tax incentives offered by the State and federal government. For more on money-saving tax incentives, check out the following two sections.
If you need help navigating your taxes when it comes to taking advantage of income tax incentives, consider consulting a tax professional, the Internal Revenue Service (IRS), or the Iowa Department of Revenue.
Iowa Fuel Cell Motor Vehicle Tax Deduction
Purchasing a fuel cell motor vehicle might make land you a $2,000 state tax deduction. To qualify for this fuel cell motor vehicle tax deduction, the following must be true for Iowa taxpayers:
- Using IRS Form 8910, you claimed the IRS Alternative Motor Vehicle Credit (under Section 30B of the Internal Revenue Code) for the current tax year. For help and instructions, refer to the IRS Form 8910 online resource.
- Your automobile is a qualified fuel cell motor vehicle.*
- You placed this vehicle into service before January 1, 2015.
*For specifics on qualifying for the fuel cell motor vehicle tax deduction, refer to Iowa Code 422.7.
Federal Tax Credits for Fuel-Efficient Vehicle Owners
The IRS offers federal tax credits for buying certain fuel-efficient vehicles. Eligible alternative energy vehicles include:
- Electric cars (EVs).
- Plug-in hybrids (PEVs).
- Alternative fuel vehicles (AFVs).
For more on claiming your federal tax credit, refer to fueleconomy.gov's Tax Incentive Information Center.
Some Iowa auto insurance providers offer insurance discounts for having green driving habits and/or driving a fuel-efficient vehicle. Consult your car insurance company about potential green vehicle discounts such as:
- Hybrid auto discounts.
- Alternative fuel vehicle (AFV) discounts.
- Economy car discounts.
- Low-mileage discounts.
- Pay as you drive discounts.
Insurance providers and individual circumstances dictate whether you're eligible for money-saving insurance discounts. For example, you might receive a 10% discount on car insurance for owning or leasing a hybrid car, while maintaining low mileage can earn you up to a 30% auto insurance discount.
If your IA auto insurance falls short when it comes to eco-friendly driver discounts, compare auto insurance rates online and find one that suits your budget.
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