Overview of Iowa Biofuel Tax Credits and Ethanol Blends Sales

Ethanol consumption  has been promoted at the state level. In Iowa for instance, the Iowa General Assembly authorized House File 2754 in 2006. This legislation established the goal that 25% of all petroleum used in the formulation of gasoline in Iowa be replaced by biofuels by 2020. To support this goal, several refundable tax credits were enacted for biofuel retailers. As of now, Iowa biofuel retailers have four tax credits available: The Ethanol Promotion Tax Credit, the E85 Gasoline Promotion Tax Credit, the E15 Plus Gasoline Promotion Tax Credit, and the Biodiesel Blended Fuel Tax Credit (IDR, 2014).