SF 2503 (LSB 5832SZ (2) 91)

SENATE FILE 2503

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO SF 2275)
(SUCCESSOR TO SSB 3102)

A BILL FOR

An Act  modifying the sales or use tax refund for biodiesel production, and including retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423.4, subsection 9, paragraph b, Code 2026, is amended to read as follows:
   b.  The amount of the refund shall be calculated by multiplying a designated rate by the total number of gallons of biodiesel produced by the biodiesel producer in this state during each quarter of a calendar year. The Beginning January 1, 2026, but before January 1, 2027, the designated rate shall be four five cents.  Beginning January 1, 2027, but before January 1, 2028, the designated rate shall be four cents.
    Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2026, for gallons of biodiesel produced by a biodiesel producer in this state on or after that date.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Beginning January 1, 2026, but before January 1, 2027, this bill increases the sales or use tax refund available to the producers of biodiesel from 4 cents per gallon to 5 cents per gallon. Beginning January 1, 2027, but before January 1, 2028, the bill reverts the refund amount back to 4 cents per gallon of biodiesel produced. The amount of the refund is calculated by multiplying the designated rate (currently 4 cents) by the total number of gallons of biodiesel produced by the biodiesel producer in this state. The bill does not change the repeal date of January 1, 2028.
   The bill applies retroactively to January 1, 2026, for gallons of biodiesel produced by a biodiesel producer in this state on or after that date.