Alternative Fuels Tax

Expired: 06/30/2007

Ethanol-blended gasoline including E85 is taxed at $0.19 per gallon, while conventional gasoline is taxed at $0.207 per gallon. The non-ethanol blended gasoline tax rate may be adjusted annually, depending on the amount of ethanol-blended fuel sold in the preceding calendar year. Those who blend conventional motor fuel with ethanol may file for a refund for the difference between excise taxes paid on the motor fuel purchased to produce ethanol-blended gasoline and the excise tax due on the ethanol-blended gasoline. Compressed natural gas used as a motor fuel is taxed at $0.16 per 100 cubic feet. (Reference Iowa Code 452A.3, 452A.21 and 11-103.16(8A))