Electric Fuel Excise Tax

Who is Impacted & How to Register for a License

In 2019, the Iowa legislature enacted House File 767 to create a new excise tax on sales of “electric fuel,” or electricity dispensed into an electric vehicle (EV) for purposes of propelling the EV. This new tax takes effect July 1, 2023. Beginning July 1, owners of EV charging stations will be responsible for reporting and paying to the Iowa Department of Revenue two and six-tenths cents for each kilowatt hour ($0.026 per kWh) of electric fuel dispensed into an EV battery or energy storage device. This does not apply to electric fuel dispensed at residences.

The new tax requires two groups of EV charging station owners to obtain licenses and remit the tax: electric fuel users and electric fuel dealers.

  • An electric fuel user is a person who dispenses electric fuel from an EV charging station owned and controlled by the person into the battery or other energy storage device of an EV owned or controlled by the person. In other words, a business that owns EV charging stations to charge its own fleet of EVs is an electric fuel user.
  • An electric fuel dealer is a person who owns an EV charging station that dispenses electric fuel into the battery or other energy storage device of an electric motor vehicle. In other words, a business that owns EV charging stations and lets others charge their EVs at the stations is an electric fuel dealer.

As noted above, the new tax does not need to be paid when EVs are charged at residences. EV owners do not need to obtain an electric fuel user or dealer license to charge their EV at their home or apartment. The Department’s proposed administrative rules to implement this tax provide several examples to help EV charging station owners understand when a user or dealer license is needed.

Registration will become available on April 3, 2023. To register for an electric fuel user or dealer license, you will need to create a GovConnectIowa account if you do not already have one. After logging in, navigate to the I Want To… tab and select the action item in the Manage Tax Accounts section.

Licensees are required to file an electric fuel excise tax return every six months. The first return for July 1 through December 31, 2023 will be due January 31, 2024. Returns must be filed and tax must be remitted through GovConnectIowa.

If you have any questions, please email IDRMotorFuel@iowa.gov or call 515-281-3114.