A bill for an act modifying the sales or use tax refund for biodiesel production.

This bill increases Iowa's sales or use tax refund for biodiesel producers from 4 cents to 5 cents per gallon of biodiesel produced in the state. The refund amount is calculated by multiplying the new 5-cent rate by the total gallons produced each quarter. It extends the expiration date of this tax incentive from January 1, 2028, to January 1, 2031. The bill directly affects biodiesel producers operating within Iowa.