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.
This bill increases the state tax on cigarettes sold in Iowa, directly affecting smokers and retailers. Under the new law, the tax per cigarette rises from 6.8 cents to 14.3 cents, which doubles the cost of a standard 20-cigarette pack from $1.36 to $2.86. The legislation also raises taxes on loose tobacco dispensed from vending machines, increasing the rate from 3.06 cents to 6.43 cents per cigarette. These changes are implemented by amending existing tax code sections to require higher payments to the state department.
This bill creates sales and use tax exemptions and refunds for tangible personal property, digital products, and services used to build, maintain, or restart nuclear electric generation facilities in Iowa. The tax relief applies to items directly used for construction, repair, or restarting operations after decommissioning, provided the facility begins commercial operation within twelve and a half years of receiving its license or pouring initial concrete. If a facility fails to start operations within this timeframe, it must repay all previously claimed tax exemptions and refunds. Additionally, the law defines specific equipment and systems eligible for these benefits, including nuclear components, electrical infrastructure, cybersecurity tools, and energy storage systems, while repealing the provision on July 1, 2051.
This bill creates a new fund to support nuclear energy workforce training at state universities, requiring nuclear power facilities in Iowa to contribute a portion of their tax savings to it. In exchange for these contributions, the bill allows nuclear facilities to receive exemptions and refunds on sales and use taxes for equipment and services used in building or maintaining their plants. Facilities must register with the state, sign an agreement detailing their financial commitment, and submit annual reports to verify they are meeting their obligations. If a facility fails to make the required contributions, it must repay the tax exemptions and refunds it claimed for that year. The legislation also defines specific nuclear components and structures that qualify for these tax benefits and establishes reporting requirements for the state board of regents.
This bill exempts sales and use taxes on building materials, supplies, equipment, and services used to construct a regional water trail system by a specific type of nonprofit corporation. To qualify for this tax exemption, the nonprofit must be organized under Iowa law, have a majority of its board members appointed by state political subdivisions, and be responsible for implementing a regional recreational and dam safety plan. The tax relief applies retroactively to January 1, 2025, covering purchases made on or after that date for projects involving written construction contracts.
This bill proposes exempting high-ethanol gasoline (containing more than 85% ethanol) from excise taxes when purchased directly at terminals or refineries for use in agricultural machinery. To qualify for this tax exemption, buyers must provide and retain specific exemption certificates, which suppliers are required to keep on file for at least three years. The legislation also holds purchasers personally responsible for paying the tax if they use the fuel for any purpose other than agricultural production.
This bill authorizes specific funding for the Iowa Department of Transportation for the 2026-2027 fiscal year, drawing from the Road Use Tax Fund and the Primary Road Fund. The legislation allocates money for various operational needs, including salaries for over 2,600 employees, maintenance of roads and facilities, modernization of vehicle registration systems, and support for driver licensing services. Additionally, the bill establishes rules for how any leftover funds from certain maintenance and modernization projects must be used, ensuring they remain available for up to three years after the fiscal year ends rather than reverting to the state treasury.
This bill exempts sales and use taxes on building materials, supplies, equipment, and services used to construct a regional water trail system in Iowa. It applies specifically to nonprofit corporations that have a majority of their board appointed by state political subdivisions and are responsible for implementing regional recreational and dam safety plans. To qualify for the tax exemption, the nonprofit must enter into a written construction contract where the resulting infrastructure becomes public property or the property of the designated exempt entity. The law takes effect immediately upon passage and applies retroactively to January 1, 2025, for qualifying purchases and services made on or after that date.
This bill exempts high-ethanol gasoline, specifically blends containing more than 85 percent ethanol, from the state excise tax when purchased directly from a terminal or refinery for use in agricultural equipment. To qualify for this tax exemption, buyers must obtain and present a specific certificate to the supplier, who is required to keep these records for at least three years. The law also holds the purchaser personally responsible for paying the tax if they use the fuel for any purpose other than agricultural production. Ultimately, the legislation removes the cost of the excise tax for farmers buying high-ethanol fuel directly from the source for their machinery.
This Iowa bill modifies the state tax refund program specifically for biodiesel producers. The legislation increases the refund rate from four cents to five cents per gallon of biodiesel produced within the state. It also extends the expiration date for this tax benefit from January 1, 2028, to January 1, 2031. These adjustments apply to the total number of gallons produced by eligible producers during each quarter of a calendar year.
