This bill amends existing fuel taxation laws in Iowa by extending the tax credit for E-15 gasoline and modifying the sales tax refund for biodiesel production. Specifically, the repeal date for the E-15 gasoline tax credit is extended from January 1, 2026, to January 1, 2029. Additionally, the designated tax credit rate is reduced from 9 cents per gallon to 4.5 cents per gallon for the calendar year 2028, and any excess credit for that year will not be refundable. The bill also clarifies that retail dealers whose tax year does not align with the repeal date can continue to claim the tax credit in the following tax year.

Furthermore, the bill increases the refund available to biodiesel producers from 4 cents per gallon to 4.5 cents per gallon produced. The amendments ensure that the tax credits and refunds are available and applicable to the relevant parties while adjusting the rates and conditions under which they can be claimed. The overall aim of the bill is to support the production and use of renewable fuels in Iowa.

Statutes affected:
Introduced: 422.11O, 422.11Y, 422.33, 423.4