A bill for an act modifying the sales or use tax refund for biodiesel production.(Formerly HF 2071 .)

Plain English Breakdown

The official source material does not provide specific details on how the increased refund will impact overall biodiesel production or sales, nor does it clarify if there are additional requirements for producers to receive the higher tax refund.

Bill to Modify Biodiesel Tax Refund

This bill increases the sales or use tax refund for biodiesel production from 4 cents per gallon to 5 cents per gallon and extends the expiration date of this refund until January 1, 2031.

What This Bill Does

• Increases the sales or use tax refund 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 who are eligible for the sales or use tax refund.

Terms To Know

biodiesel

A type of fuel made from vegetable oils, animal fats, and recycled cooking grease that can be used in diesel engines.

sales or use tax refund

Money returned to businesses for taxes paid on certain goods or services, in this case, biodiesel production.

Limits and Unknowns

• The bill does not specify how the increased refund will affect overall biodiesel production or sales.
• It is unclear if there are any additional requirements or conditions for producers to receive the higher tax refund.

Official Summary Text

A bill for an act modifying the sales or use tax refund for biodiesel production.(Formerly HF 2071 .)

Current Bill Text

House

File

2786

-

Introduced

HOUSE

FILE

2786

BY

COMMITTEE

ON

WAYS

AND

MEANS

(SUCCESSOR

TO

HF

2071)

(COMPANION

TO

SF

2275

BY

COMMITTEE

ON

TRANSPORTATION)

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

5832HV

(2)

91

jm/jh

H.F.

2786

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repealed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

5832HV

(2)

91

jm/jh

1/

1