House Study Bill 318 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON KAUFMANN) A BILL FOR An Act relating to fuel taxation by extending tax credits for 1 E-15 gasoline available against the individual and corporate 2 income taxes. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2522YC (4) 91 jm/jh

H.F. _____ Section 1. Section 422.11O, subsection 5, paragraph b, Code 1 2025, is amended to read as follows: 2 b. This subsection is repealed January 1, 2026 2028 . 3 Sec. 2. Section 422.11Y, subsection 9, Code 2025, is amended 4 to read as follows: 5 9. This section is repealed January 1, 2026 2028 . 6 Sec. 3. Section 422.33, subsection 11D, paragraph c, Code 7 2025, is amended to read as follows: 8 c. This subsection is repealed January 1, 2026 2028 . 9 Sec. 4. 2011 Iowa Acts, chapter 113, section 37, as amended 10 by 2016 Iowa Acts, chapter 1106, section 3, and 2022 Iowa Acts, 11 chapter 1067, section 57, is amended to read as follows: 12 SEC. 37. TAX CREDIT AVAILABILITY. For a retail dealer who 13 may claim an E-15 plus gasoline promotion tax credit under 14 section 422.11Y or 422.33, subsection 11D , as enacted in this 15 Act and amended in subsequent Acts, in calendar year 2025 16 2027 , and whose tax year ends prior to December 31, 2025 2027 , 17 the retail dealer may continue to claim the tax credit in the 18 retail dealer’s following tax year. In that case, the tax 19 credit shall be calculated in the same manner as provided in 20 section 422.11Y or 422.33, subsection 11D , as enacted in this 21 Act and amended in subsequent Acts, for the remaining period 22 beginning on the first day of the retail dealer’s new tax year 23 until December 31, 2025 2027 . For that remaining period, the 24 tax credit shall be calculated in the same manner as a retail 25 dealer whose tax year began on the previous January 1 and who 26 is calculating the tax credit on December 31, 2025 2027 . 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill relates to fuel taxation by extending tax credits 31 for E-15 gasoline. 32 The bill extends the eligibility of a retail dealer to claim 33 the E-15 plus gasoline promotion tax credit from January 1, 34 2026, to January 1, 2028, for purposes of the individual income 35 -1- LSB 2522YC (4) 91 jm/jh 1/ 2

H.F. _____ and corporate income taxes. The bill extends the E-15 plus 1 gasoline promotion tax credit from January 1, 2026, to January 2 1, 2028, for purposes of the corporate income tax. 3 As a result of extending the E-15 plus gasoline promotion tax 4 credit, the bill also extends the ability of a retail dealer to 5 claim the E-85 promotion tax credit to January 1, 2028, even if 6 the retail dealer claims an E-15 plus gasoline promotion tax 7 credit during the same year. 8 The bill amends the Iowa Acts to ensure the availability of 9 the E-15 plus gasoline promotion tax credit for an entire tax 10 year, for those retail dealers whose tax year does not align 11 with the repeal date of the tax credit. 12 -2- LSB 2522YC (4) 91 jm/jh 2/ 2