Biodiesel users in Iowa will soon be saving some money on their gas tax. The Iowa Biodiesel Board says that as of July 1, diesel blended with at least 11 percent biodiesel (B11) will enjoy a tax exemption of 3 cents a gallon compared to regular diesel.
“This state policy represents another link in the chain that secures Iowa’s energy and economic future,” said Grant Kimberley, executive director of IBB. “This incentive, along with other state policies that encourage biodiesel production and use, shores up support for a fuel that delivers jobs, diversifies our fuel supply and reduces greenhouse gases.”
Prior to 2015, the tax for diesel was $0.225 a gallon. The new diesel tax, already in effect, is $0.325 a gallon. Users of B11 or higher will now pay tax of just $0.295 a gallon.
Kimberley added that this won’t automatically mean B11 is less expensive at the pump than diesel, but: “All of the pro-biodiesel policies in Iowa working together, plus federal programs that encourage energy independence, add up,” he said. “This is likely to make B11 pretty competitive at the pump.”