A bill for an act extending the biodiesel blended fuel tax credit.(See HF 2785.)
Summary
House Study Bill 688 extends Iowa’s biodiesel blended fuel tax credit by moving the repeal date from January 1, 2028, to January 1, 2033. The bill amends the provisions in the Iowa Code governing the credit for retail dealers who sell biodiesel blended fuel, preserving the credit for both individual and corporate income tax purposes for an additional five years.
The bill also updates related transition language in the 2011 Iowa Acts to make sure retail dealers with tax years that do not line up with the repeal date can still claim the credit for the full remainder of their tax year. In practical terms, this prevents a dealer from losing eligibility mid-tax-year when the repeal date arrives and clarifies how the credit is calculated during the final year of availability.
Impact
The bill changes Iowa tax law by delaying the sunset of the biodiesel blended fuel promotion tax credit in sections 422.11P and 422.33(11C) until 2033 and conforming a related session-law provision to match that new date. It affects retail fuel dealers that blend and sell biodiesel fuel, as well as the administration of the individual and corporate income tax credits tied to those sales. The measure preserves the existing credit structure rather than creating a new incentive, and it adjusts the statutory transition rules so the credit remains available for a complete tax year for affected taxpayers.
Sentiment
The available voting history suggests strong support for the bill: the House Committee on Ways and Means reported it unanimously, 24-0. The bill’s purpose is straightforward and technical, and the context indicates it was treated as a routine extension of an existing biofuels tax incentive rather than a controversial policy change. No committee discussion was provided, but the unanimous committee vote points to broadly favorable sentiment.
Contention
No specific points of contention are reflected in the provided materials. The main policy issue inherent in the bill is whether Iowa should continue subsidizing biodiesel blended fuel through the tax credit for another five years, which may matter to biofuel producers, fuel retailers, and taxpayers concerned about revenue impacts. However, the committee vote and lack of recorded debate suggest there was little visible opposition at this stage.
A bill for an act relating to fuel taxation by extending tax credits for E-85 and E-15 gasoline, and biodiesel, and extending sales tax refunds for biodiesel production.(See HF 1053.)
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.)
A bill for an act relating to reporting total gasoline and diesel fuel gallonage sold and dispensed by retail dealers for a determination period.(See HF 2643.)
A bill for an act relating to matters under the purview of the Iowa economic development authority, including tax credit limits, targeted jobs tax credits, and the major economic growth attraction program; creation of the business incentives for growth program, the seed investor tax credit program, the Iowa film production incentive program, the research and development tax credit program, and the sustainable aviation fuel production tax credit program; elimination of the high quality jobs program, the investments in qualifying businesses tax credit, employer child care tax credits, assistive device tax credits, endow Iowa tax credits, and research activities tax credits; and including effective date provisions and criminal penalties.(See HF 1054.)
A bill for an act relating to reporting total gasoline and diesel fuel gallonage sold and dispensed by retail dealers for a determination period. (Formerly HF 2299.) Effective date: 07/01/2026.