Iowa House Bill HF304

Iowa 2023-2024 Regular Session

• Introduced: 2/15/23
• Refer: 2/15/23

Caption

A bill for an act creating a used electric vehicle tax credit available against the individual and corporate income taxes, and including applicability provisions.

Impact

If enacted, HF304 would amend Iowa's tax code to incorporate a specific credit for used electric vehicles. This could positively influence the market for used EVs, making them more accessible to residents, thereby supporting environmental goals associated with reduced fossil fuel reliance. Additionally, this legislation has the potential to stimulate economic activity by encouraging local dealerships and sellers to engage in the used electric vehicle market.

Summary

House File 304 introduces a tax credit aimed at promoting the purchase of used electric vehicles (EVs) in Iowa. The bill stipulates that taxpayers who acquire a used electric vehicle may claim a tax credit of $500 against their individual and corporate income taxes. This measure is part of a broader initiative to encourage the transition towards more sustainable transportation options and reduce the overall carbon footprint of vehicular emissions. The applicability of the credit extends to purchases made on or after January 1, 2024, aiming to incentivize consumers ahead of this date.

Contention

While the bill is generally seen as a step toward encouraging sustainable practices, discussions around its implementation and effectiveness may arise. Notably, there might be concerns regarding the actual demand for used electric vehicles in the state, and whether a $500 tax credit is sufficient to motivate consumers. Additionally, lawmakers may debate the fiscal impact of the credit on state revenues, particularly since the bill includes provisions that prevent credits from being transferable and limit claims to documentation requirements.