Iowa

Department of Natural Resources, 515-715-8200

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:

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 

Mid-Level Ethanol Blend Retailer Tax Credit

Retail stations dispensing mid-level blends of ethanol in gasoline between 15% (E15) up to 69% (E69) for use in motor vehicles may be eligible for a tax credit. Credit amounts vary by date: September 16 through May 31 the credit is equal to $0.03 per gallon and June 1 through September 15 the credit is equal to $0.10 per gallon. The tax credit expires December 31, 2024. (Reference Iowa Code 214A.1 and 422.11Y)

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

E85 Retailer Tax Credit

Retail stations dispensing gasoline fuel blends of E85 (70%-85% ethanol) for use in motor vehicles may be eligible for a tax credit in the amount of $0.16 per gallon sold. The tax credit expires after December 31, 2024. Eligible taxpayers may also claim the Ethanol Blend Retailer Tax Credit for the same ethanol gallons and tax year. (Reference Senate File2309, 2016 and Iowa Code 422.11O)

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

Biofuel Infrastructure Grants 

The Renewable Fuels Infrastructure Program provides financial assistance to qualified E85 or dual E15 and biodiesel retailers. Cost-share grants are available to upgrade or install new E85 or dual E15 and biodiesel infrastructure. Three-year cost-share grants are available for up to 50% of the total cost of the total project, up to $30,000, and five-year cost-share grants are available for up to 70% of the total cost of the project, up to $50,000.

Biodiesel distributors may apply for cost-share grants for infrastructure upgrades and installations at biodiesel terminal facilities. Facilities blending or dispensing blends ranging from 2% biodiesel (B2) to 98% biodiesel (B98) are eligible for up to 50% of the total project, up to $50,000. Facilities blending or dispensing B99 or B100 are eligible for up to 50% of the total project, up to $100,000.

The Renewable Fuels Infrastructure Board receives administrative support from staff within the Iowa Department of Agriculture and Land Stewardship and the 11-member board has authority to determine the eligibility of applicants. For more information, refer to the Renewable Fuels Infrastructure Program website.

(Reference House File 643, 2017, and Iowa Code 159A.13-159A.15)

Point of Contact 
Paul Ovrom 
Marketing and Renewable Fuels Program 
Iowa Department of Agriculture and Land Stewardship 
Phone: (515) 242-6239 
Fax: (515) 281-6178 
paul.ovrom@iowaagriculture.gov 
http://www.iowaagriculture.gov/ 

Renewable Fuel Labeling Requirement

Biodiesel, biobutanol, and ethanol blend dispensers must be affixed with decals identifying the type of fuel blend. If fuel blends containing more than 10% ethanol are being dispensed, the decal must include the following statement: "For Flexible Fuel Vehicles Only." The Iowa Department of Agriculture and Land Stewardship (Department) may approve an application to place a decal in a special location on a pump with special lettering or colors that are clear and conspicuous to the consumer. The application must be made in writing to the Department. (Reference Iowa Code 214A.16)

Ethanol Blend Dispenser Requirement

An ethanol retailer selling a blend of at least 9% ethanol by volume must use gasoline storage and dispensing infrastructure that the Iowa Department of Natural Resources and state fire marshal have determined is compatible with the ethanol blend being dispensed. Exceptions may apply. (Reference Iowa Code 455G.31)

Biofuel Specifications

Ethanol-blended gasoline must conform to ASTM D4814, E85 must conform to ASTM D4806, and biodiesel-blended fuel containing at least 6%, but no more than 20%, biodiesel must conform to ASTM D7467. Additionally, biobutanol must be an agriculturally derived isobutyl alcohol that meets ASTM D7862 for butanol for blending with gasoline for use as a motor fuel. Gasoline blended with biobutanol must conform to ASTM D4814. The state defers to the U.S. Environmental Protection Agency for potential changes in specifications. (Reference Iowa Code 214A.2)

Alternative Fuel Infrastructure Tax Credit
(Originally expired 12/31/13 - retroactively extended through 12/31/16, by H.R. 2029) Fueling equipment for E85 installed between January 1, 2014, and December 31, 2016, is eligible for a tax credit of 30% of the cost, not to exceed $30,000. Station owners with multiple locations can use the credit towards each site. For more information about claiming the credit, see IRS Form 8911.

Ethanol Infrastructure Grants and Loan Guarantees
The Rural Energy for America Program (REAP) provides grants and loan guarantees to rural (population less than 50K) small businesses to purchase renewable energy systems or make energy efficiency improvements. Eligible renewable energy systems include equipment used to distribute flexible fuels. The maximum grant funding is 25% of project costs and the maximum loan guarantee is $25 million. The program is funded through fiscal year 2018 but is subject to congressional appropriations thereafter. For more information, see the REAP website.

Point of Contact
Office of Rural Development, Business and Cooperative Programs
U.S. Department of Agriculture
Phone: (202) 690-4730
http://www.rurdev.usda.gov/

Current ACE members that offer E85/direct ethanol sales in this state include:

Absolute Energy (St. Ansgar)
E85:
Emily Black, Refined Products Marketing Group (RPMG),
Email: eblack@rpmgllc.com; Phone: 952-465-3239

Denatured ethanol:
Todd Kruggel – RPMG,
Email: toddk@rpmgllc.com; Phone: 952-465-3227
Patrick Griffin Boyle - RPMG,
Email: pboyle@rpmgllc.com; Phone: 952-465-3234

Golden Grain Energy (Mason City)
Denatured ethanol:
Todd Kruggel – RPMG,
Email: toddk@rpmgllc.com; Phone: 952-465-3227
Patrick Griffin Boyle - RPMG,
Email: pboyle@rpmgllc.com; Phone: 952-465-3234

Homeland Energy Solutions (Lawler)
Todd Kruggel – RPMG,
Email: toddk@rpmgllc.com; Phone: 952-465-3227
Patrick Griffin Boyle - RPMG,
Email: pboyle@rpmgllc.com; Phone: 952-465-3234

Little Sioux Corn Processors (Marcus)
E85:
Emily Black, Refined Products Marketing Group (RPMG),
Email: eblack@rpmgllc.com; Phone: 952-465-3239

Denatured ethanol:
Todd Kruggel – RPMG,
Email: toddk@rpmgllc.com; Phone: 952-465-3227
Patrick Griffin Boyle - RPMG,
Email: pboyle@rpmgllc.com; Phone: 952-465-3234

Quad County Corn Processors (Galva)
Matt Carter - EcoEnergy,
Phone: 615-786-0404

Click here for a complete list of domestic ethanol producers and sales contacts for E85/direct ethanol sales