Energy

House File 1053 modifies fuel taxation policies, primarily affecting retail dealers of E-15 gasoline and producers of biodiesel. The bill extends the E-15 gasoline tax credit, delaying its repeal from January 2026 to January 2029. However, for calendar year 2028, the E-15 credit will be reduced from nine cents to four and a half cents per gallon and will no longer be refundable. Additionally, the bill increases the sales tax refund available to biodiesel producers from four cents to four and a half cents per gallon produced.

This bill, known as the "Community Anaerobic Digester System Act," establishes a framework for processing organic materials, such as agricultural manure, into renewable fuel and digestate. It defines various components and types of anaerobic digester systems, differentiating between general systems and "community" systems not tied to specific animal feeding operations. These systems are designed to break down organic matter to produce biogas and a nutrient-rich byproduct. The act also includes provisions for associated fees and penalties.

HSB 312 allows Iowa state banks to purchase federal tax credits for clean energy projects without investment limits. Specifically, it permits state banks to invest freely in tax credits authorized under federal law (26 U.S.C. §45 and §48), which typically support renewable energy development. The bill directly affects Iowa state banks by expanding their investment options in these federal credits. This change removes previous restrictions on banks holding such credits for their own accounts.