Ethanol Blend Retailer Tax Credit
The Ethanol Promotion Tax Credit is available to any retailer in the amount of $0.08 per gallon of ethanol blended into gasoline, as long as the retailer sells a certain percentage of renewable fuels as part of their total gasoline sales. Retailers must meet the following annual renewable fuel goals to be eligible for the credit:
| Year: % Biofuel | Year: % Biofuel |
|---|---|
| 2011: 12% | 2015: 17% |
| 2012: 13% | 2016: 19% |
| 2013: 14% | 2017: 21% |
| 2014: 15% | 2018: 23% |
The schedule is delayed by two years for retailers of gasoline with sales of less than 200,000 gallons annually. For retailers within 2% of meeting these goals, the tax credit will be $0.06 for every gallon of ethanol-blended gasoline sold. For retailers within 4% of meeting these goals, the tax credit will be $0.025 for calendar year 2011 and $0.04 for calendar year 2012 for every gallon of ethanol-blended gasoline 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. Eligible taxpayers may also claim the biodiesel tax credit available for retail biodiesel blends. (Reference Senate File 531, 2011, and Iowa Code 422.11N and 422.33)