HF2071 • 2026

A bill for an act modifying the sales or use tax refund for biodiesel production.(See HF 2786 .)

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: JONES
Last action: 2026-05-02
Official status: Withdrawn. H.J. 1157 .
Effective date: Not listed

Plain English Breakdown

The official source does not provide details on how the total refund is calculated, only that it involves multiplying a designated rate by the number of gallons produced.

Bill to Modify Biodiesel Tax Refund

This bill modifies the sales or use tax refund for biodiesel producers by increasing the rate from 4 cents per gallon to 5 cents per gallon and extending the expiration date of this refund until January 1, 2031.

What This Bill Does

Increases the sales or use tax refund rate for biodiesel production from 4 cents to 5 cents per gallon.
Extends the expiration date of this tax refund program from January 1, 2028, to January 1, 2031.

Who It Names or Affects

Biodiesel producers in Iowa who are eligible for sales or use tax refunds.

Terms To Know

biodiesel: A type of fuel made from vegetable oils, animal fats, or recycled cooking grease that can be used in diesel engines.
sales or use tax refund: Money returned to businesses by the government as a reduction of taxes paid on sales or purchases.

Limits and Unknowns

The bill does not specify how much additional money will be refunded due to the increase from 4 cents to 5 cents per gallon.
It is unclear if there are any other changes to tax policies for biodiesel producers beyond this specific refund adjustment.

Bill History

2026-05-02 Iowa Legislature
Withdrawn. H.J. 1157 .
2026-04-22 Iowa Legislature
Committee report approving bill, renumbered as HF 2786 .
2026-04-21 Iowa Legislature
Committee vote: Yeas, 24. Nays, 0. Excused, 1. H.J. 974 .
2026-04-21 Iowa Legislature
Committee report, recommending passage. H.J. 973 .
2026-03-31 Iowa Legislature
Subcommittee recommends passage.
2026-03-30 Iowa Legislature
Subcommittee Meeting: 03/31/2026 12:00PM RM 304.
2026-03-26 Iowa Legislature
Subcommittee: Hermanson, Bloomingdale and Wichtendahl. H.J. 761 .
2026-01-14 Iowa Legislature
Introduced, referred to Ways and Means. H.J. 80 .

Official Summary Text

A bill for an act modifying the sales or use tax refund for biodiesel production.(See HF 2786 .)

Current Bill Text

Read the full stored bill text

House

File

2071

-

Introduced

HOUSE

FILE

2071

BY

JONES

A

BILL

FOR

An

Act

modifying

the

sales

or

use

tax

refund

for

biodiesel

1

production.

2

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

3

TLSB

5832YH

(4)

91

jm/jh

H.F.

2071

Section

1.

Section

423.4,

subsection

9,

paragraphs

b

and

e,

1

Code

2026,

are

amended

to

read

as

follows:

2

b.

The

amount

of

the

refund

shall

be

calculated

by

3

multiplying

a

designated

rate

by

the

total

number

of

gallons

4

of

biodiesel

produced

by

the

biodiesel

producer

in

this

state

5

during

each

quarter

of

a

calendar

year.

The

designated

rate

6

shall

be

four

five

cents.

7

e.

This

subsection

is

repealed

January

1,

2028

2031

.

8

EXPLANATION

9

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

10

the

explanation’s

substance

by

the

members

of

the

general

assembly.

11

This

bill

increases

the

sales

or

use

tax

refund

available

12

to

the

producers

of

biodiesel

from

4

cents

per

gallon

to

5

13

cents

per

gallon.

The

amount

of

the

refund

is

calculated

by

14

multiplying

the

designated

rate

(currently

4

cents)

by

the

15

total

number

of

gallons

of

biodiesel

produced

by

the

biodiesel

16

producer

in

this

state.

The

bill

changes

the

repeal

date

of

17

the

refund

from

January

1,

2028,

to

January

1,

2031.

18

-1-

LSB

5832YH

(4)

91

jm/jh

1/

1