Ethanol Blend Retailer Tax Credit

The Ethanol Promotion Tax Credit is available to any fuel retailer for up to $0.08 per gallon of pure ethanol blended into gasoline, as long as the retailer sells a certain percentage of renewable fuels (ethanol and biodiesel) as part of their total motor fuel sales on a company-wide or a site-by-site basis. Retailers must meet the following annual renewable fuel goals to be eligible for the credit:

Calendar
Year
% Biofuel (retailers
selling >200,000
gallons of motor
fuel)
% Biofuel (retailers
selling <200,000
gallons of motor
fuel)
2018 23% 19%
2019 25% 21%
2020 25% 25%

For retailers within 2% of meeting these goals, the tax credit will be $0.06 for every gallon of pure ethanol blended into gasoline sold. For retailers within 4% of meeting these goals, the tax credit will be $0.04 for every gallon of pure ethanol sold. The governor may adjust the percentages if certain flexible fuel vehicle registration targets are not met or if there is a shortage of biofuel feedstock. The tax credit expires December 31, 2020. Eligible taxpayers may also claim the E85 Retailer Tax Credit for the same ethanol gallons and tax year. (Reference Iowa Code 422.11N)

Point of Contact
Amy Harris
Administrator, Research and Policy Division
Iowa Department of Revenue
Phone: (515) 281-0196
amy.harris@iowa.gov