The list below contains summaries of all Iowa incentives and laws related to Natural Gas.
The Iowa Department of Natural Resources conducts marketing and education outreach to encourage the use of alternative fuels and, contingent upon funding, awards demonstration grants to individuals who purchase vehicles that operate on alternative fuels, including but not limited to E85, biodiesel, compressed natural gas, electricity, solar energy, or hydrogen. Individuals may use grants to conduct research connected with the fuel or the vehicle and to purchase the vehicle if the Department of Natural Resources retains the title of the vehicle, the vehicle is used for research, and the proceeds from the eventual sale of the vehicle are used for additional research. (Reference Iowa Code 214A.19)
The Iowa Energy Center administers the Alternate Energy Revolving Loan Program (AERLP) for alternative energy projects. Through a participation agreement with the project lender, the AERLP provides up to 50% of the cost of biomass or alternative fuel production projects, up to $1 million per facility. The AERLP funds are provided at 0% interest with the lender's funds bearing market interest. Fuel production facilities must be located in Iowa and funding is limited. (Reference Iowa Code 476.46)
The Value-Added Agriculture Program offers a combination of forgivable and traditional low-interest loans for business projects involving the production of alternative fuels. The mixture of forgivable and low-interest loans varies according to the size of the award. Research and development projects are not eligible for this program.
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
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
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)
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)