IARN — The reauthorized Iowa biofuel tax differentials was legislation welcomed by Growth Energy, which is the leading biofuel trade association in the country.
On June 30th, Governor Kim Reynolds signed Senate File 2403 into law when visiting Pine Lake Corn Processors at Steamboat Rock. The bipartisan legislation extended the biofuels tax differentials until 2026.
John Fuher is vice president of government affairs for Growth Energy. He lauded the bill’s signing in a recent interview with the Iowa Agribusiness Radio Network.
“I think the biggest thing I want to say about that is the E15 tax differential, meaning that E15 fuel now gets a favorable tax treatment, that’s a big deal,” Fuher said. “When you go to the pump already you see E15 for a couple pennies cheaper and that just expands that advantage for a fuel that is made in Iowa, made with Iowa grown corn, and produced by Iowa workers.”
“I think it just expands that availability,” he continued, “that ability to get this lower cost, highly competitive, better quality fuel to consumers.”
Passage of the bill signaled continued support of renewable fuels and will put millions of dollars back into the Road Use Tax Fund each year for vital infrastructure projects. The legislation passed both chambers with unanimous approval.
“It’s really a great bill and I think we’re really excited about it. We’re excited to see what happens,” Fuher said. “People drive and when they fill up with gas, most often they buy fuel based on price. If you have a fuel that is lower cost and better performing, consumers are going to choose that. Anything that we can do to further incent that, I think it’s a great way forward.”
The biofuels industry in Iowa has taken some large hits as a result of the COVID-19 pandemic. Fuher noted that this win showed the industry that the state government supports them without any partisan divide.
Story courtesy of the Iowa Agribusiness Radio Network.
