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.

This bill exempts ethanol-blended gasoline containing over 85% ethanol from Iowa's excise tax when purchased exclusively for use in farm machinery (like tractors) used in agricultural production. It requires farmers to provide a completed exemption certificate to fuel suppliers at the time of purchase, which suppliers must keep for three years. If the fuel is later used for non-farm purposes, the farmer must pay the excise tax directly to the state. The change shifts from a post-purchase refund system to an upfront exemption, applying specifically to agricultural equipment fuel.