IOWA RETAILER RENEWABLE FUELS TAX CREDITS
(Effective July 1, 2011)
Ethanol Promotion Tax Credit
This revised credit applies to the current Iowa Renewable Fuels Standard (RFS). Retailers may qualify for the following based on combined sales of biodiesel and ethanol:
Any retailer meeting the renewable fuels schedule for a given year would be entitled to an 8 cent tax credit on every gallon of ethanol (E100) sold.
For retailers within 2 percent of meeting the RFS schedule, the tax credit equals 6 cents on every gallon of ethanol (E100) sold.
For retailers within 4 percent of the RFS schedule, the tax credit equals:
- 2.5 cents in calendar year 2011
- 4 cents in calendar years 2012 through 2017
Note: The retailer has the option of computing their Iowa Renewable Fuels Standard threshold on a company-wide or site-by-site basis.
E85 Promotion Tax Credit
A retailer may claim a tax credit on the total gallons of E85 fuel sold in a given tax year. The tax credit rate is:
- 2011: 10 cents per gallon
- 2012-2017: 16 cents per gallon
E15 Tax Credit
Retailers may claim a tax credit for blends containing a minimum of 15% ethanol (E15) and a maximum of 69% ethanol (E69):
- 2011-2014: 3 cents per gallon
- 2015-2017: 2 cents per gallon
Multiple Credit Eligibility
A retailer may claim the ethanol promotion tax credit on all ethanol (E100) content, even if the blended fuel also qualifies for the E15 or E85 promotion tax credits. For example: assume a retailer has the following sales for 2012:
| Type | Sales | Ethanol Content | E100 Gallons |
| E10 | 335,000 gallons | x 10% | 33,500 gallons |
| E15 | 340,000 gallons | x 15% | 51,000 gallons |
| E85 | 75,000 gallons | x 79% (ave.) | 59,250 gallons |
| 750,000 gallons | 143,750 gallon |
The retailer’s Iowa RFS would be: 143,750 divided by 750,000 = 19.2%. Therefore the retailer would qualify for the highest ethanol promotion tax credit rate (8 cents per gallon of E100). Their total tax credits would be as follows:
| Qualifying Gals. | Rate | Tax Credit Amt. | |
| Ethanol Promo (E100) | 143,750 | 8 cents | $11,500 |
| E15 | 340,000 | 3 cents | $10,200 |
| E85 | 75,000 | 16 cents | $12,000 |
| Total Tax Credit: | $33,700 |
Retailer Misfueling Liability
Iowa law now states that a retailer is NOT LIABLE for damage caused by the use of incompatible motor fuel dispensed at the retailer’s site, if: The incompatible motor fuel complies with fuel specifications under Iowa Code. The incompatible motor fuel is chosen by a customer. The dispenser is correctly labeled.
For more information or In-State Contact
Contact the Iowa Corn Promotion Board and the Iowa Corn Growers Association, www.iowacorn.org, 515.225.9242 or the Iowa Renewable Fuels Association, www.IowaRFA.org, 515-252-6249.
