Iowa Senate Bill SF2493

Iowa 2025-2026 Regular Session

• Introduced: 4/15/26
• Engrossed: 4/22/26
• Refer: 4/22/26
• Enrolled: 5/11/26

Caption

A bill for an act relating to the excise tax on certain ethanol blended gasoline purchased exclusively for use in an implement of husbandry used in agricultural production. (Formerly SF 2188, SSB 3025.) Effective date: 07/01/2026

Summary

Senate File 2493 aims to amend the existing excise tax framework on ethanol-blended gasoline used in agricultural production. The bill specifically exempts ethanol blended gasoline that is formulated with over 85% ethanol from being subject to the excise tax when purchased for use in implements of husbandry. This change is intended to support the agricultural sector by reducing fuel costs for farmers who rely on this type of fuel for their farming equipment. Under the provisions of this bill, individuals purchasing this specified blend of gasoline are required to substantiate their purchases with an exemption certificate issued by the Iowa Department of Revenue (IDR). This certificate must be properly completed and signed, and suppliers are mandated to retain these certificates for a minimum of three years to ensure compliance. The impact of SF2493 extends to the existing excise tax laws, which currently impose a variable tax rate on gasoline based on its ethanol content. By removing the excise tax for certain uses, the bill is expected to stimulate agricultural productivity by alleviating financial burdens associated with fuel costs. It also aligns with the state’s goals to promote renewable fuel usage. Despite its intentions, the bill has sparked discussions concerning the implications of tax exemption policies and potential oversight challenges. There are concerns regarding the enforcement of the requirements surrounding exemption certifications, and the need for checks to prevent misuse of the exemption for non-agricultural purposes. Overall, SF2493 reflects a significant step toward supporting Iowa's agricultural community, though it raises questions about regulatory enforcement and long-term effects on state revenue.