House moves to extend biofuels tax credits
An extension of a handful of state biofuels tax incentives received final legislative approval Thursday in a move that local lawmakers say will benefit area ethanol plants.
“This should be able to help, especially when we’re having low corn prices,” said state Rep. Helen Miller, D-Fort Dodge.
State Rep. Mike Sexton, R-Rockwell City, said extending the tax credits was a necessary move if Iowa wants to remain a leader in the biofuels industry.
“If Iowa doesn’t lead the way, then who’s going to?” he asked.
The bill passed the state House of Representatives on an 88-8 vote. It had previously been approved in the state Senate by a wide margin, so the measure now goes to Gov. Terry Branstad.
Miller said the bill addresses four tax incentives. She said three of them can be claimed by retailers such as convenience stores and gasoline stations, while the fourth is for producers of biodiesel.
Those tax incentives are:
- The E15 gasoline promotion tax credit;
- The E85 gasoline promotion tax credit;
- The biodiesel blended fuel tax credit;
- The sales and use tax refund for biodiesel production.
She said those incentives were to expire on Jan. 1, 2018. The bill sets a new expiration date of Jan. 1, 2025, she said.
According to Miller, those tax credits were established in 2006.
“It will have an impact,” Sexton said. “They will be able to sell ethanol and biofuels for a few cents cheaper per gallon.”
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