Iowa Tax Incentives
Ethanol Retailer Tax Credit
The Ethanol Promotion Tax Credit provides a $0.065 tax credit to any retailer meeting the Iowa renewable fuel standard (RFS) schedule each year. For retailers within 2% and 4% of meeting the RFS schedule, the tax credit will be $0.045 and $0.025, respectively, for every gallon of ethanol sold. (Reference Iowa Code 422.11N and 422.33)
E85 Retailer Tax Credit
A tax credit is available to retail stations dispensing E85 for use in motor vehicles in the amount of $0.20 per gallon for calendar years 2009 and 2010, and $0.10 per gallon in calendar year 2011. After 2011, the tax credit decreases by $0.01 per year and expires after December 31, 2020. Taxpayers claiming the E85 tax credit may also claim the tax credit available for retail ethanol blends for the same tax year and same gallon of fuel. (Reference Iowa Code 422.11O)
Biodiesel Tax Credit
Through December 31, 2011, retailers whose diesel sales are at least 50% biodiesel blends, that contain a minimum 2% biodiesel, are eligible for a $0.03 per gallon tax credit on each gallon of B2 or higher blends sold. (Reference Iowa Code 422.11P)
Alternative Fuel Production Tax Credits
The Enterprise Zone Program and the High Quality Jobs Program offer state tax incentives to business projects for the production of biomass or alternative fuels. Depending on the program, 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; a doubling of the state's refundable research activities credit; additional funding for training new employees; and a local property tax exemption of up to 100% of the value added to the property.
Point of Contact
Business Finance Program
Program Coordinator
Iowa Dept. of Economic Development, Business Development Division
Phone (515) 725-3133
Fax (515) 725-3010
business@iowalifechanging.com
http://www.iowalifechanging.com
