The Iowa Senate has voted to significantly boost the tax break for E-15 during the summer. Ethanol-blended fuel gets a three-cents-per-gallon break on state taxes, but if the bill becomes law that would swell in the summer to 10-cents-a-gallon for fuel with a 15 percent ethanol blend. Senator Rob Hogg, a Democrat from Cedar Rapids, is an advocate of E-15.
The bill would extend all state tax breaks for producers and retailers of renewable fuels ’til 2020 and it would allow biobutanol (by-oh-BYOOT-uh-nawl) to be classified as a renewable fuel.
The bill passed the Senate on a 48-to-zero vote, but it could face questions in the Iowa House. House Speaker Kraig Paulsen, a Republican from Hiawatha, notes lobbyists for the state’s gas stations and convenience stores have raised questions about the different tax rates for E-15, based on the season.
The American Petroleum Institute is opposed to giving E-15 a tax advantage at Iowa gas pumps. Lobbyists for Kum N Go, KWIK Trip, the Iowa Grocery Industry Association and the Petroleum Marketers and Convenience Stores of Iowa are all registered as undecided on the bill.
