Green Driver State Incentives in Iowa

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 branch and the Alternative Fuels Data Center.

Iowa Emission Testing

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 Tax Incentives for Green Drivers

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 section.

Some tax incentives have expired or have been repealed.

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.

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).
  • Hybrids.
  • Plug-in hybrids (PEVs).
  • Diesels.
  • Alternative fuel vehicles (AFVs).

For more on claiming your federal tax credit, refer to's Tax Incentive Information Center.

Auto Insurance Discounts for Eco-Friendly Driving and Green Vehicles

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. A 10% discount on car insurance is about the maximum you can get for owning or leasing a hybrid car.

If your Iowa 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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