Iowa House Approves Biochemical Tax Credit
Date posted - March 29, 2016
Northwest Iowa — State tax credits will soon be available to northwest Iowa companies that make new products from what’s left over after ethanol and biodiesel are made from “biomass” like corn and soybeans. In her visit to Sheldon Monday, Iowa Economic Development Director Debi Durham called that good news, since, as she says, northwest Iowa is the center of ethanol and biodiesel production in the state.
Governor Terry Branstad supports the concept and the Iowa House gave it final legislative approval Monday afternoon.
That’s Representative Mary Ann Hanusa, a Republican from Council Bluffs. Bill backers envision companies developing new products from the starches, sugars and oils that are the left-overs of biofuel production.
The bill is “made to order” for Iowa, according to Hanusa, because the state leads the country in biofuel production.
Companies that develop new products from biofuel production left-overs will apply to the Iowa Economic Development Authority for the tax credits. The bill calls for a 10 million dollar cap on these tax credits each year. The 10 million will come from the Economic Development Authority’s already existing 170 million dollar account for a series of refundable state tax credits.