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Iowa Legislature passes biofuel bill; butanol blends, E-15 and biodiesel tax credits extended

Both houses of the Iowa Legislature have passed a bill (SF2344) providing for biobutanol-blended gasoline; modifying the rate of the E-15 plus gasoline promotion tax credit; and extending provisions for a biodiesel production refund.

The legislation, which Governor Terry Branstad is expected to sign into law, enables the sale of biobutanol-gasoline blends, which will be labeled “Bu-xx”, where “xx” refers to the percentage of butanol in the blend.

The legislation also increases and extends the E-15 tax credit, extends the E-85 tax credit, and extends the biodiesel tax credit.

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