A bill for an act modifying the sales or use tax refund for biodiesel production, and including retroactive applicability provisions.

This bill modifies the sales or use tax refund available to biodiesel producers in Iowa by increasing the refund rate from four to five cents per gallon for the period between January 1, 2026, and January 1, 2027. The refund amount is calculated by multiplying the designated rate by the total number of gallons of biodiesel produced within the state during each calendar quarter. After January 1, 2027, the refund rate reverts to four cents per gallon, and the provision remains in effect until January 1, 2028. Additionally, the bill applies retroactively to cover biodiesel produced on or after January 1, 2026, ensuring that producers receive the higher refund rate for that initial period.