Iowa EV Tax Credits

EV Incentives for Iowa Drivers

Thinking about going electric? Along with lower fuel costs and reduced maintenance, Iowa drivers may be able to take advantage of federal tax credits and local rebates to make EV ownership more affordable. Here's what you need to know.

Incentive TypeDetailsAmountExpires
Federal New EV CreditAvailable for eligible new EVs (vehicle & income limits apply)Up to $7,500Sept. 30, 2025
Federal Used EV CreditFor qualifying pre-owned EV purchasesUp to $4,000Sept. 30, 2025
EV Charger CreditHome charging installation creditUp to $1,000Sept. 30, 2025
Iowa State EV CreditDirect state EV tax rebate for individualsNot available-
Utility RebatesMidAmerican Energy & others may offer purchase/charger rebatesUp to $500Varies by provider
Business IncentivesEnvironmental/fleet programs for infrastructure & vehiclesVariesOngoing

Federal EV Tax Credits

  • New EVs - Up to $7,500 in federal tax credits (depending on vehicle eligibility and income). 
  • Used EVs - Up to $4,000 available for qualifying pre-owned EV purchases. 
  • EV Charger Credit - Up to $1,000 toward the installation of a home charging station. 

Note: Many dealerships, including McGrath, can apply eligible credits at the point of sale to lower your purchase price instantly. 

Iowa State Incentives

  • State Tax Credit - Currently, Iowa does not offer a direct state EV tax credit for individuals.  
  • Utility Rebates - MidAmerican Energy and other utilities may provide rebates (up to $500) when you purchase or lease a qualifying EV.  
  • Business Incentives - Some Iowa business and fleet programs may qualify for environmental and infrastructure rebates. 

Take Advantage of Incentives Before They Expire

Federal credits are ending September 30, 2025, so now is the best time to shop for a new or used EV. McGrath Family of Dealerships can help you explore options like the Ford Lightning, Hyundai Iconiq 5, or Jeep Wrangler 4xe plug-in hybrids and guide you through available credits and rebates.

Shop EVs with McGrath Family of Dealerships

From the Chevy Blazer EV to the Volkswagen ID.4, McGrath Family of Dealerships offers a wide selection of electric and hybrid vehicles. Our team can walk you through incentive eligibility and help you take advantage of every possible savings opportunity.