Iowa 2025-2026 Regular Session

Iowa House Bill HF1053

Introduced
5/13/25  

Caption

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.)

Impact

The changes brought forth by HF1053 are significant for both retail dealers and biodiesel producers in the state. The designated rate for tax credits available to retail dealers is set to decrease from 9 cents per gallon to 4.5 cents per gallon in calendar year 2028, signaling a shift in financial incentives for retailers. Furthermore, the bill prohibits refunds for tax credits exceeding the retail dealer's tax liability for the same year, which may affect their financial returns on ethano-rich gasoline sales. On the biodiesel side, producers will experience an increase in sales tax refunds, advancing from 4 cents to 4.5 cents per gallon of biodiesel produced, thereby enhancing profitability for biodiesel manufacturers.

Summary

House File 1053 is a legislative proposal that aims to modify existing fuel taxation policies by extending the tax credits for the sale of E-15 gasoline and adjusting the sales tax refund for biodiesel producers. Specifically, the bill extends the eligibility for the E-15 gasoline promotion tax credit from its previous expiration date of January 1, 2026, to a new date of January 1, 2029. This extension is intended to encourage the use of E-15 gasoline, which is a blend of 15% ethanol and 85% gasoline, promoting renewable fuel sources in Iowa.

Contention

Discussions surrounding HF1053 may involve debates on the sustainability of local agricultural economies versus the reliance on tax incentives to promote alternative fuels. Proponents of the bill argue that such extensions are necessary to support the renewable energy market and to incentivize the use of cleaner fuel options, thus contributing to environmental sustainability. However, critics might highlight concerns about financial impacts on state revenue and the long-term viability of renewable market supports. This creates a fertile ground for discussions about the efficacy of tax incentives in promoting environmental goals without overburdening state budgets.

Companion Bills

IA HSB237

Related 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.)

Previously Filed As

IA SF2396

A bill for an act relating to state taxation by modifying lottery and alcoholic beverages provisions under the purview of the department of revenue, changing the taxation of lump sum distributions of retirement income, increasing estimated tax thresholds, making appropriations, and including effective date and retroactive applicability provisions. (Formerly SSB 3115.)

IA SF2398

A bill for an act relating to state taxation by modifying alternate and individual income tax rates, and including effective date and retroactive applicability provisions.(Formerly SSB 3038.)

IA HF2676

A bill for an act providing a credit refund for taxpayers who own or lease cow-calf operations that maintain a herd of qualified cattle, and providing an appropriation.(Formerly HSB 739.)

IA SSB3115

A bill for an act relating to the administration of state taxation, the lottery, and alcoholic beverages under the purview of the department of revenue, making appropriations, and including effective date and retroactive applicability provisions.(See SF 2396.)

IA SF550

A bill for an act relating to state and local revenue and finances by modifying sales and use taxes, the charitable conservation contribution tax credit available against individual and corporate income taxes, the water service tax, property taxes, transit funding, and local option taxes, crediting moneys to the natural resources and outdoor recreation trust fund, modifying allocations of road use tax fund moneys, making appropriations, and including effective date, retroactive applicability, and applicability provisions.(Formerly SSB 1125.)

IA HSB724

A bill for an act relating to the administration of state taxation, the lottery, and alcoholic beverages under the purview of the department of revenue, making appropriations, and including effective date and retroactive applicability provisions.

IA HSB694

A bill for an act relating to the administration of state taxation, the lottery, and alcoholic beverages under the purview of the department of revenue, making appropriations, and including effective date and retroactive applicability provisions.

IA HF641

A bill for an act relating to the economic development authority, including certain tax credit programs, the Iowa wine, beer, and spirits promotion board, and the beer and liquor control fund, and including applicability provisions.(Formerly HSB 23; See HF 679.)

IA HF679

A bill for an act relating to the economic development authority, including certain tax credit programs, the Iowa wine, beer, and spirits promotion board, and the beer and liquor control fund, and including applicability provisions.(Formerly HF 641, HSB 23.)

IA SF552

A bill for an act relating to individual and corporate income taxes, the insurance premium tax, and including the contingent repeal of the individual income tax, and including retroactive applicability and effective date provisions.(Formerly SSB 1126.)

Similar Bills

No similar bills found.