SF2493 • 2026

A bill for an act relating to the excise tax on certain ethanol blended gasoline purchased exclusively for use in an implement of husbandry used in agricultural production. (Formerly SF 2188 , SSB 3025 .) Effective date: 07/01/2026.

Agriculture Taxes

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: COMMITTEE ON WAYS AND MEANS
Last action: 2026-06-01
Official status: Signed by Governor . S.J. 1033 .
Effective date: Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Tax Exemption for Ethanol Blended Gasoline Used in Farm Equipment

This law removes an excise tax on ethanol blended gasoline with more than 85% ethanol when it is bought exclusively for use in farm equipment used by farmers.

What This Bill Does

Removes the excise tax on ethanol blended gasoline that has over 85% ethanol if it's purchased only for use in farm equipment.
Requires people buying this type of fuel to get a special exemption certificate from the government department.
Makes sure suppliers keep these certificates for at least three years.
Says that if someone uses or sells this exempt fuel in an unauthorized way, they must pay the tax themselves.

Who It Names or Affects

Farmers who use farm equipment powered by ethanol blended gasoline.
Suppliers of ethanol blended gasoline with over 85% ethanol content.

Terms To Know

Implement of husbandry: A machine or vehicle used in farming, like a tractor or combine harvester.
Excise tax: A special kind of sales tax on specific goods or activities.

Limits and Unknowns

The law only applies to ethanol blended gasoline with more than 85% ethanol content.
Farmers must keep records and get exemption certificates for the fuel they buy.
If farmers misuse the exempt fuel, they have to pay the tax themselves.

Bill History

2026-06-01 Iowa Legislature
Signed by Governor . S.J. 1033 .
2026-05-11 Iowa Legislature
Reported correctly enrolled, signed by President and Speaker, and sent to Governor. S.J. 1028 .
2026-05-02 Iowa Legislature
Message from House. S.J. 990 .
2026-05-02 Iowa Legislature
Immediate message. H.J. 1127 .
2026-05-02 Iowa Legislature
Explanation of vote. H.J. 1159 .
2026-05-02 Iowa Legislature
Passed House , yeas 85, nays 1. H.J. 1121 .
2026-05-02 Iowa Legislature
Substituted for HF 2798 . H.J. 1120 .
2026-05-02 Iowa Legislature
Passed on file. H.J. 1120 .
2026-04-22 Iowa Legislature
Read first time, referred to Ways and Means. H.J. 978 .
2026-04-22 Iowa Legislature
Message from Senate. H.J. 977 .
2026-04-22 Iowa Legislature
Immediate message. S.J. 866 .
2026-04-22 Iowa Legislature
Passed Senate , yeas 44, nays 0. S.J. 865 .
2026-04-15 Iowa Legislature
Committee report, approving bill. S.J. 807 .
2026-04-15 Iowa Legislature
Introduced, placed on Ways and Means calendar. S.J. 804 .

Official Summary Text

A bill for an act relating to the excise tax on certain ethanol blended gasoline purchased exclusively for use in an implement of husbandry used in agricultural production. (Formerly SF 2188 , SSB 3025 .) Effective date: 07/01/2026.

Current Bill Text

Read the full stored bill text

Kim Reynolds
governor
Office of the Governor Chris Cournoyer
LT GOVERNOR
June 01, 2026
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretary,
I hereby transmit:
Senate File 2493, an Act relating to the excise tax on certain ethanol blended gasoline
purchased exclusively for use in an implement of husbandry used in agricultural
production.
The above Senate File is hereby approved on this date.
Sincerely,
Kim Reynolds
Governor of Iowa
cc: Secretary of the Senate
Clerk of the House
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 WWW.GOVERNOR.IOWA.GOV
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Senate File 2493
AN ACT
RELATING TO THE EXCISE TAX ON CERTAIN ETHANOL BLENDED GASOLINE
PURCHASED EXCLUSIVELY FOR USE IN AN IMPLEMENT OF HUSBANDRY
USED IN AGRICULTURAL PRODUCTION.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. NEW SECTION . 452A.16 Exempt fuel — implements
of husbandry.
1. The excise tax under section 452A.3 shall not be imposed
or collected on ethanol blended gasoline formulated with more
than eighty-five percent by volume of ethanol when purchased at
a terminal or refinery rack exclusively for use in an implement
of husbandry used in agricultural production.
2. A person who purchases fuel on which an excise tax is not
collected in accordance with subsection 1 shall substantiate
the purchase with an exemption certificate provided by the
department. The exemption certificate must be complete and
correct according to the requirements of the director, signed
by the purchaser, and retained by the supplier. A supplier
shall retain exemption certificates for at least three years.
3. The department shall disallow all sales of gallonage
described in this section unless proof is established by an
exemption certificate.
Senate File 2493, p. 2
4. If a purchaser uses or disposes of fuel that was
purchased using an exemption certificate pursuant to subsection
2 in a nonexempt manner, the purchaser is solely liable for the
excise tax and shall remit the tax directly to the department.
— /T _ AMY SINCLAIR PAT GRASSLEW
President of the Senate Speaker of jthe House
I hereby certify that this bill originated in the Senate and
is known as Senate File 2493, Ninety-first General Assembly.
W. CHARLES SMITHSON
<1 Approved I 2026
Secretary of the Senate
KIM REYNOLD* *
Governor I