Tax Credits and Renewable Energy in Iowa
The state of Iowa established a production tax credit for renewable chemicals, the FAA approved a new biofuel, and the Iowa Department of Revenue saw a rise in biodiesel blended fuel and E85. Check out these must read stories you may have missed from last week:
Iowa Governor Terry Branstad passed legislation establishing a production tax credit (PTC) for renewable chemicals, making Iowa the first state in the U.S. to do so. To be eligible for the credit, renewable chemicals are required to have at least 50 percent biobased content that is not be sold or used for the production of food, feed or fuel. The new law is scheduled to take effect July 1 and run through June 30, 2021. Read the full article on Ethanol Producer Magazine.
The FAA approved a new biofuel for air travel, bringing the total number of approved biofuels to five. This new fuel is created from a specific alcohol called isobutanol which is derived from feedstocks like sugar, corn, or forest wastes. Read the full article on AOPA.
The Iowa Department of Revenue released a report that shows the average biodiesel blend purchased in Iowa reached 11% in 2015, an increase from the 9.4% average in 2014. Despite lower gasoline prices for part of the year, Iowans also set records for gallons purchased of E85 (13.1 million gallons) and mid-level ethanol blends (8.7 million gallons). The growth and new annual records demonstrate the need for policies that encourage further development of these fuels. Read the full article on hoosierag.com