This bill modifies the sales or use tax refund for biodiesel production in Iowa. Specifically, it amends Section 423.4, subsection 9, paragraph b, to increase the designated refund rate from four cents to five cents per gallon for biodiesel produced between January 1, 2026, and January 1, 2027. After this period, the refund rate will revert back to four cents per gallon for biodiesel produced from January 1, 2027, until January 1, 2028. The calculation for the refund remains based on the total number of gallons produced by the biodiesel producer in the state.

Additionally, the bill includes a retroactive applicability provision, ensuring that the new refund rates apply to biodiesel produced on or after January 1, 2026. This means that producers will benefit from the increased refund rate for any biodiesel produced during that timeframe, reinforcing support for the biodiesel industry in Iowa. The repeal date of January 1, 2028, remains unchanged.

Statutes affected:
Introduced: 423.4