HSB 561: Relating to the excise tax on certain ethanol blended gasoline purchased exclusively for use in an implement used in agricultural production

What it does

Under current law, the excise tax on each gallon of ethanol blended gasoline classified as E-15 or higher is based on the distribution percentage of those fuels compared to the distribution of all nonaviation gasoline motor fuel, and ranges from cents to cents. For motor fuel and undyed special fuel used for a variety of exempt purposes under Code section 452A.17, including in implements used in agricultural production, a person who pays the excise tax may claim a refund from the Iowa department of revenue. This bill exempts ethanol blended gasoline formulated with more than percent by volume of ethanol from imposition and collection of the excise tax when purchased at a terminal or refinery rack exclusively for use in an implement used in agricultural production.

House subcommittee · named January 14, 2026

• Rep. Megan Jones (R) · megan.jones@legis.iowa.gov
• Rep. Sean Bagniewski (D) · sean.bagniewski@legis.iowa.gov
• Rep. Jacob Bossman (R) · jacob.bossman@legis.iowa.gov

Lobbying · 14 for, 0 against

For: ADM; Deere & Company; Growmark, Inc.; Growth Energy; Iowa Biotechnology Association; Iowa Corn Growers Association; Iowa Department of Agriculture & Land Stewardship; Iowa Farm Bureau Federation; Iowa Farmers Union; Iowa Institute for Cooperatives; Iowa Nebraska Farm Equipment Dealers Association; Iowa Renewable Fuels Association (IRF); and 2 more

In plain words

1. January 14, 2026Filed in the House and sent to the Transportation committee
2. January 14, 2026House subcommittee named: Jones, Bagniewski and Bossman
3. February 3, 2026Subcommittee recommended passing it
4. February 4, 2026Approved by the House committee
5. February 4, 2026Committee vote: 21–0
6. February 9, 2026Approved by the House committee, and given a new number: HF 2343