Iowa Senate Bill SSB3025

Iowa 2025-2026 Regular Session

• Introduced: 1/14/26
• Refer: 1/14/26

Caption

A bill for an act relating to the excise tax on certain ethanol blended gasoline purchased exclusively for use in an implement used in agricultural production.(See SF 2188, SF 2493.)

Impact

The implementation of SSB3025 is expected to positively impact farmers by lowering their fuel expenses. As the current law dictates that excise tax rates on certain ethanol blends can range from 24 cents to 30 cents per gallon, the exemption could lead to significant savings for agricultural producers who rely on high ethanol blends for their equipment. This could ultimately enhance their productivity and economic viability, particularly in a competitive agricultural landscape.

Summary

Senate Study Bill 3025 proposes a significant amendment regarding the excise tax on ethanol blended gasoline specifically used in agricultural production. The bill seeks to exempt ethanol blended gasoline formulated with more than 85 percent by volume of ethanol from the excise tax when purchased at a terminal or refinery rack exclusively for agricultural implements. This legislation is designed to support the agricultural sector by reducing operational costs related to fuel.

Contention

While the bill presents clear benefits to the agricultural community, it may also lead to a debate regarding energy taxation policies. Opponents could argue that such tax exemptions create disparities within the broader fuel market, potentially disadvantaging other sectors not afforded similar relief. The discussion around this bill could center on the balance between supporting local agriculture and ensuring equitable taxation across all sectors reliant on fossil fuels and alternative energy sources.