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. (Reference Iowa Code 422.11N)

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