Iowa’s renewable fuels industry gets a boost
Reynolds signs tax break, adds $7 million to program
Farmers, trucking companies, employees of ethanol and biodiesel plants – indeed all Iowans – will benefit from a couple of moves Gov. Kim Reynolds made recently to support the renewable fuels industry.
First, the governor signed into a law an extension of a fuel tax credit for diesel that contains more than 10 percent biodiesel. Her action extends a 3 cents per gallon fuel tax differential until 2026.
We previously urged the governor to sign this measure as soon as it hit her desk and we are pleased that she did so.
But the governor didn’t stop there.
She also committed $7 million of the money Iowa will receive from the federal COVID-19 relief package to a program that helps businesses pay for the equipment needed to sell biodiesel and ethanol. It’s called the Iowa Renewable Fuels Infrastructure Program, and it provides grants to fuel distributors and retailers.
Usually, the program has $3 million. Now, it will have $10 million.
We thank the governor for making that commitment to a program that will ultimately make more biodiesel and ethanol available to consumers.
Biodiesel, ethanol and and Iowa are a natural combination. Soybeans are the raw material for biodiesel, and corn is the basic ingredient of ethanol. Hundreds of Iowans make their living working in the plants that produce those two renewable fuels. All Iowans benefit from fresh air made possible by these clean-burning fuels.
We’re glad we have a governor that realizes all of that and works to support the state’s renewable fuels industry.