Legislators will soon fill the Iowa State Capitol, in hopes of wrapping up the legislative session.
The Iowa Renewable Fuels Association (IRFA) and Iowa Soybean Association (ISA) look to state lawmakers to pass companion bills, which seek to extend incentives for higher blends of biofuels.
Iowa’s current fuel tax differentials are set to expire on June 30. The Iowa Renewable Fuels Association and Iowa Soybean Association call for an extension of the current tax differentials, which can be done through passage of House File 2279 and Senate File 2403. Nathan Hohnstein, IRFA policy director, says these companion bills would extend and modernize Iowa’s fuel tax differentials.
?The current structure incentivizes B11 and higher, as well as E10 and higher. Those are set to expire at the end of the fiscal year, June 30,” Hohnstein said. “These companion bills would extend that differential and modernize the ethanol side from E10 higher blends to E15 higher blends.”
Hohnstein believes each bill has enough support to pass through the Iowa Legislature by month’s end. The measures received unanimous support in both the House and Senate Ways and Means Committees.
“I do believe there is a lot of support on both sides of the aisle to get this done, especially in lieu of what we’re seeing across the country and in Iowa when it comes to the hurt that the biofuel industry, but also the Ag economy is facing,” Hohnstein said.
Hohnstein says, “The end goal is to continue to push that needle on biofuels, but also be good stewards to the taxpayer dollar.” The fuel tax differentials also support the Road Use Tax Fund, which helps fund major infrastructure projects.
Iowa’s biofuels industry reaches new milestones, with a “push” from the fuel tax differentials, according to Hohnstein.
“On the ethanol side – In the recent annual retail report, out from the Department of Revenue, you see E10 now makes up about 86-percent of the fuel sold in the state of Iowa,” Hohnstein said. “On the biodiesel side, you see B11 and higher blends make up about 57-percent of the biodiesel sold in the state of Iowa.”
