New State Tax Break for High‑Ethanol Fuel Used in Ag Equipment

Des Moines, Iowa (RI) — Iowa Governor Kim Reynolds has signed a bill intended to expand the use of ag equipment fueled by high-ethanol blends. It exempts fuel that contains more than 85% ethanol from the state excise tax.

A John Deere prototype tractor that runs on E98 was on display at the bill-signing ceremony. Deanna Kovar, president of John Deere’s Ag and Turf Division, says the tractor was manufactured in Waterloo.

Eastern Iowa farmer Lance Lillibridge has tested the E98 tractor on his farm.

Lillibridge says ending the state excise tax on the highest ethanol blends will be an incentive for farmers to buy equipment that runs on E98 — and to save money on fuel costs.

John Deere has not announced when the tractor will be available for sale.

KIWA Staff Photo

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