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.

This bill exempts ethanol-blended gasoline containing over 85% ethanol (E-85) from Iowa's excise tax when purchased at a terminal or refinery rack exclusively for use in farm machinery. It directly affects Iowa farmers and agricultural businesses that use E-85 fuel in tractors, harvesters, and other equipment for crop production. The key provision removes the requirement to pay the tax upfront and seek a refund under current law, making the exemption automatic for this specific agricultural use. This change applies only to fuel bought for farm equipment, not general vehicle use.