Iowa’s House of Representatives approved a bill on Tuesday, March 28, to help encourage a statewide transition to renewable fuels.
The Des Moines Register reported that the House has endorsed a goal to make 25 percent of all fuel sold in the state either ethanol or biodiesel blends by the year 2025.
The new bill provides money and tax relief to retailers to help speed up that transition.
The Register reported that the bill would spend $6 million over three years to help retailers install pumps and tanks to handle renewable fuels and would create various tax credits for retailers who sell the fuels.
The bill gets rid of the current tax break for 10 percent ethanol and replaces it with three new tax credits: a 5-cent credit to the retailer for each gallon of pure ethanol sold; a 25-cent credit for each gallon of E85 blended ethanol; and a 3-cent credit for each gallon of biodiesel sold.
In addition, The Register reported that the bill contained a controversial measure that would raise taxes on non-ethanol gasoline if the goals were not met.
The House bill is now scheduled to move to the Senate.