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State and Federal Incentives and Laws

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Alternative Fuel Vehicle (AFV) Demonstration Grants

The Iowa Department of Natural Resources conducts marketing and education outreach to encourage the use of alternative fuels and, contingent upon funding, also 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. Grants may be used towards conducting research connected with the fuel or the vehicle. Grants may be used towards the purchase of 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)