Senate File 2493 introduces a new section, 452A.16, which exempts certain fuel purchases from excise tax when used in agricultural production. Specifically, the bill states that ethanol blended gasoline containing more than eighty-five percent ethanol, purchased at a terminal or refinery rack for use in implements of husbandry, will not be subject to the excise tax outlined in section 452A.3. To qualify for this exemption, purchasers must provide an exemption certificate issued by the department, which must be completed accurately, signed, and retained by the supplier for a minimum of three years.

Additionally, the bill stipulates that if a purchaser misuses the exempt fuel, they will be held solely responsible for remitting the excise tax directly to the department. The department is also tasked with disallowing any sales of the specified fuel unless proper proof via the exemption certificate is provided. This legislation aims to support agricultural producers by reducing their fuel costs associated with farming operations.