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IA HF1053

IA HF1053
A bill for an act relating to fuel taxation by extending tax credits for E-15 gasoline, and modifying the sales tax refund for biodiesel production.(Formerly HSB 237.)


summary

Introduced
05/13/2025
In Committee
05/15/2025
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

This bill relates to fuel taxation by extending the tax credit for E-15 gasoline and modifying the sales tax refund for biodiesel production. The bill modifies the E-15 gasoline tax credit by extending the repeal of the credit from January 1, 2026, to January 1, 2029. The bill reduces the tax credit from 9 cents per gallon to 4.5 cents per gallon in calendar year 2028, and makes the tax credit nonrefundable in calendar year 2028. The bill amends the Iowa Acts to ensure the availability of the E-15 gasoline tax credit for those retail dealers whose tax year does not align with the repeal date of the E-15 gasoline tax credit repeal date in the bill. The bill increases the refund available to the producers of biodiesel from 4 cents per gallon produced to 4.5 cents per gallon produced.

AI Summary

This bill modifies fuel taxation laws related to E-15 gasoline and biodiesel production by extending and adjusting existing tax credits. Specifically, the bill extends the E-15 gasoline tax credit from January 1, 2026, to January 1, 2029, while reducing the tax credit from 9 cents per gallon to 4.5 cents per gallon in calendar year 2028. Additionally, for the 2028 tax year, the E-15 gasoline tax credit will become non-refundable, meaning that any excess credit cannot be refunded to the retail dealer. The bill also increases the sales tax refund for biodiesel producers from 4 cents to 4.5 cents per gallon produced. Furthermore, the legislation includes provisions to ensure that retail dealers whose tax years do not align with the calendar year can still claim the E-15 gasoline tax credit in a fair and consistent manner. These changes are designed to continue supporting alternative fuel production and usage in Iowa while gradually adjusting the financial incentives for retailers and producers.

Committee Categories

Budget and Finance

Sponsors (0)

No sponsors listed

Other Sponsors (1)

Ways and Means (House)

Last Action

Rereferred to Ways and Means. H.J. 1222. (on 05/15/2025)

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