Ethanol-Based Fuels Exemption

IA Sales Tax Incentive

Administered by: Iowa Department of Natural Resources

Program Details

Program ID: 57
Expiration Date: 6/30/2007
Last Updated: 6/8/2004

Eligibility

Program Summary

This excise tax exemption allows a refund to those who blend conventional motor fuel with alcohol to produce ethanol. The refund is equal to the "difference between taxes paid on the motor fuel purchased to produce ethanol blended gasoline and the tax due on the ethanol blended gasoline." In effect, ethanol-blended gasoline is taxed at $0.19 per gallon, while non-ethanol blended gasoline is taxed at $0.20 per gallon.

Contact & Resources

Additional Resources

http://www.state.ia.us/dnr/energy/programs/renewable/incentives.htm

Please verify current program details with the administering agency before making any financial decisions.