Gov. Terry Branstad traveled to the POET Bio-refining
facility in Coon Rapids Wednesday to sign legislation into law that promotes
the development of bio-butanol and bio-butanol blended gasoline.
Senate File 2344 also modifies the rate of the E-15
promotion tax credit and extends provisions for the biodiesel production
refund. Backers say the bill will strengthen and diversify Iowa’s
leadership position in the area of biofuels.
“Iowa is a biofuels leader in this country and having states
step to the plate with legislation supporting America’s Advanced Biofuel,
biodiesel, is a win for our industry,” said Steven J. Levy, chairman of the
National Biodiesel Board. “Our champions in Iowa have shown that hard work to
grow this still-young industry pays off.”
The new Iowa law contains provisions to extend the tax
credit for E-15 ethanol-blended fuel and cover crucial summer months, extend
the bio-diesel production tax credit for five years to retain, attract
biodiesel production to Iowa and add an advanced biofuel -- bio-butanol -- to
Iowa’s renewable fuels industry.
The bill also extends three existing retail tax credits for
renewable energy to Jan. 1, 2020. The credits were for bio-diesel blended fuel
and promotion tax credits for E-85 and E-15 gasoline-ethanol blends.
The legislation provides a biodiesel producer incentive
through 2017 in the form of a two-cent-per-gallon refundable credit on the
first 25 million gallons of biodiesel produced in any single plant.
With the fate of the federal biodiesel tax incentive and the
Renewable Fuel Standard volumes currently uncertain, Levy said strong state
biodiesel policies help stabilize the industry and provide a baseline for
producers.
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