Expired, Repealed, and Archived Iowa Incentives and Laws
The following is a list of expired, repealed, and archived incentives, laws, regulations, funding opportunities, or other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality.
Alternative Fuel Production Tax Credits
Archived: 08/07/2023
The High Quality Jobs Program offers state tax incentives to business projects for the production of biomass or alternative fuels. Incentives may include an investment tax credit equal to a percentage of the qualifying investment, amortized over five years; a refund of state sales, service, or use taxes paid to contractors or subcontractors during construction; an increase of the state’s refundable research activities credit; and a local property tax exemption of up to 100% of the value added to the property. For more information, refer to the High Quality Jobs Program website. (Reference Iowa Code 15.335 and 422.10)
Ethanol Blend Retailer Tax Credit
Repealed: 01/01/2021
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 is $0.06 for every gallon of pure ethanol blended into gasoline sold. For retailers within 4% of meeting these goals, the tax credit is $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)
Biodiesel Producer Tax Refund
Expired: 01/01/2018
A biodiesel producer may apply for a refund of Iowa state sales or use taxes paid on purchases. To qualify, the producer must be registered with the U.S. Environmental Protection Agency and any biodiesel produced must be used in biodiesel fuel blends. The refund amount is based on the total gallons of biodiesel produced in the state multiplied by the designated rate of $0.02. A biodiesel producer is only eligible to receive a refund for up to 25 million gallons of biodiesel produced during each calendar year through 2017. The producer must file refund claims with the Iowa Department of Revenue on a quarterly basis. Refunds received may not be included as income for Iowa individual and corporation income tax purposes. The incentive expires December 24, 2024. (Reference Iowa Code 423.4)
Fuel Cell Motor Vehicle Tax Deduction
Expired: 12/31/2014
A taxpayer is eligible for a $2,000 tax deduction for the purchase of a qualified fuel cell motor vehicle placed into service before January 1, 2015. The taxpayer must have claimed the federal alternative motor vehicle credit under Section 30B of the Internal Revenue Code using Internal Revenue Service Form 8910 during the current tax year to be eligible for the Iowa state deduction. (Reference Iowa Code 422.7)
Electric Vehicle (EV) Registration Fee
Repealed: 01/01/2014
The following was repealed by Senate Bill 452, 2013: The annual registration fee for an EV is $25.00 unless the vehicle is more than five model years old, in which case the annual registration fee is reduced to $15.00. This section does not apply to low-speed EVs. (Reference Iowa Code 321.116)
Alternative Fuel Production Loans
Expired: 05/01/2013
The Value-Added Agriculture Program offers a combination of forgivable and traditional low-interest loans for business projects involving the production of alternative fuels. The mixture of forgivable and low-interest loans varies according to the size of the award. Research and development projects are not eligible for this program.
Renewable Fuel Replacement Goal
Archived: 06/01/2012
The Iowa Legislature set a goal of replacing 25% of conventional fuels sold in the state with biofuels by January 1, 2020. To reach this goal, the state encourages retailers to sell a certain percentage of renewable fuels in relation to their total gasoline sales by offering tax credits. (Reference Iowa Code 422.11N)
State Fleet Biofuels Use and Fuel Efficiency
Archived: 06/01/2012
As part of the Green Government Initiative, the Iowa Office of Energy Independence (OEI), Department of Administrative Services, Department of Natural Resources, and Department of Transportation lead a Biofuels Task Force. This group focuses on issues including increasing each state agency’s use of biofuels to the maximum amount feasible and increasing the fuel efficiency of the state’s vehicle fleet. The Biofuels Task Force sets specific five- and ten-year targets related to these areas, which are included in the Green Government Master Plan. Progress toward these goals will be tracked using a reporting system developed under the Green Government Initiative, and resulting data will be made public via the OEI whenever possible. (Reference Executive Order 6, 2008)
Regional Biofuels Promotion Plan
Archived: 01/01/2012
Iowa has joined Indiana, Kansas, Michigan, Minnesota, Ohio, South Dakota, and Wisconsin in adopting the Energy Security and Climate Stewardship Platform Plan (Platform), which establishes shared goals for the Midwest region, including increased biofuels production and use. Specifically, the Platform sets the following goals:
- Produce commercially available cellulosic ethanol and other low carbon fuels in the region by 2012;
- Increase E85 availability at retail fueling stations in the region to 15% of stations by 2015, 20% by 2020, and 33% of all fueling stations in the region by 2025;
- Reduce the amount of fossil fuel that is used in the production of biofuels by 50% by 2025;
- By 2025, at least 50% of all transportation fuels consumed in the Midwest will be from regionally produced biofuels and other low carbon transportation fuels.
The Platform also establishes a regional biofuels corridor program. The program directs state transportation, agriculture, and regulatory officials to develop a system of coordinated signage across the region for biofuels and advanced transportation fuels and to collaborate to create regional E85 corridors. The program requires standardized fuel product coding at fueling stations as well as increased education for retailers about converting existing fueling infrastructure to dispense E85.
Alternative Fuel Loan Program
Expired: 06/30/2011
The Iowa Energy Center administers the Alternate Energy Revolving Loan Program (AERLP) for alternative energy projects. Through a participation agreement with the project lender, the AERLP provides up to 50% of the cost of biomass or alternative fuel production projects, up to $1 million per facility. The AERLP funds are provided at 0% interest with the lender's funds bearing market interest. Fuel production facilities must be located in Iowa and funding is limited. (Reference Iowa Code 476.46)
Alternative Fuel Research and Development Funding
Archived: 06/30/2011
The Iowa Power Fund, administered through the Office of Energy Independence, supports research, development, commercialization, and deployment of biofuels, renewable energy technologies, and energy efficiency technologies, while seeking to cut greenhouse gas emissions. An 18-member board runs the Iowa Power Fund, and a seven-member committee is responsible for reviewing financial assistance applications. (Reference Iowa Code 469.6-469.10)
E85 Fuel Use Requirement
Archived: 05/31/2011
At least 60% of fuel purchased for use in the state’s fleet of FFVs must be E85. The Iowa Office of Energy Independence created the State Government E85 Use Plan detailing how this fuel use goal will be met and how the state and retailers will work together to ensure that all E85 purchases are electronically coded and reported accurately. The Iowa Department of Administrative Services provides regularly updated lists of E85 fueling stations to state employees. (Reference Executive Order 3, 2007)
Renewable Fuels Promotion and Education
Archived: 05/31/2011
At the request of the Iowa General Assembly, the Iowa Office of Energy Independence (OEI) developed a renewable fuels marketing plan to promote the state’s biofuels industry. OEI presented the plan to the General Assembly on March 1, 2009. The plan addressed biofuel infrastructure and market barriers as well as current and future OEI programs and efforts. (Reference House File 2689, 2008)
Alternative Fueling Infrastructure Cost-Share Program
Expired: 06/30/2008
A state cost-share program is being developed to provide financial incentives for the installation or conversion of E85 refueling infrastructure and infrastructure required to establish terminal facilities that store biodiesel for distribution to service stations. The program will also provide for the addition of at least 30 new or converted E85 retail outlets and four new or converted terminal facilities used to store ethanol. The program will provide for a maximum of $325,000 annually for the fiscal period beginning July 1, 2005, and ending June 30, 2008. (Reference Iowa Code 15.401)
Alternative Fuel Use
Archived: 02/21/2008
All state agencies must ensure that all bulk diesel fuel procured contains at least 5% renewable content by 2007, 10% renewable content by 2008, and 20% renewable content by 2010, provided that fuel meeting American Society for Testing and Materials (ASTM) specification D 6751 is available. Agencies must ensure that diesel vehicles operate on biodiesel blends whenever the blends are available. (Reference Executive Order 41, 2005)
Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Acquisition Requirements
Repealed: 02/21/2008
The following was rescinded by Executive Order 6, 2008: All state agency non-law enforcement, light-duty vehicles procured by 2010 must be AFVs or HEVs when an equivalent AFV or HEV model is available. Furthermore, agencies must ensure that their flexible fuel vehicles operate on E85 whenever an E85 refueling facility is available. (Reference Executive Order 41, 2005)
Alternative Fuel Loan Program
Expired: 06/30/2007
The Iowa Values Fund assists with infrastructure development for E85 retail sites and biodiesel off-site terminal locations. The Iowa Renewable Fuels Association, through a management agreement with the Iowa Department of Economic Development, manages the loan program, which provides funding on a cost-share basis to cover equipment upgrades and new installations for E85 retail sites and on-site or off-site biodiesel terminal locations. The Legislature awarded $325,000 annually for three years. Applicants are eligible to apply if the upgrade or new installation took place or begins after July 1, 2005.
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))