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 beyond the retail dealer's tax liability will not be refundable for that year. 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. This change aims to support biodiesel production in the state while ensuring that the E-15 gasoline tax credit remains available for an extended period, thereby promoting the use of renewable fuels. The amendments to the Iowa Acts ensure that the tax credits are accessible to retail dealers and biodiesel producers, fostering growth in the renewable energy sector.

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