A bill signed by Gov. Kim Reynolds last May will place “phase-in” fees on electric vehicles (EV) by January, 2020.
Iowa saw a 170 percent increase in EVs since 2016. However, these vehicles don’t contribute enough when it comes to gasoline excise tax revenue. House File 767 could fix that.
This bill will establish additional registration fees that will be placed on EVs by January 2022, with phase-in fees will starting in 2020. Battery electric vehicles will be $130; plug-in hybrid vehicles will be $65; battery electric or plug-in motorcycles will be $9. These will be in addition to the annual registration fee.
By July 1, 2023, there will be a 26 cent tax on each kilowatt hour (kWh) of electricity purchased at a nonresidential location.
On the other hand, the availability of charging stations is a possible factor that could limit the growth of EVs. According to the Legislative Services Agency, only 47 cities in Iowa have stations. In total, there are 127 stations. Most of these are established in businesses like gas stations or grocery stores.
Iowa’s number of EVs is low compared to the rest of the country. California currently leads the nation in EV registrations.
It’s hoped that this bill will help bridge the gap that is left when EV owners don’t have the necessity for gas.
MidAmerican Energy just set up a plan to establish charging stations, you can find that story here.
