Axne introduces bill to create tax credit for E15, higher blends
June 30, 2021
BY Erin Krueger
Reps. Cindy Axne, D-Iowa, and Adrian Smith, R-Neb., on June 30 introduced the Low Carbon Biofuel Credit Act, a bill that aims to create a tax credit for each gallon of fuel containing 15 percent or greater ethanol content.
The bill allows an ethanol blender or fuel retailer to claim a 5 cent tax credit for each gallon of E15 blended or sold and a 10 cent tax credit for each gallon greater than E15 blended or sold. The legislation allows the credit to be fully refundable and transferable for small retailers.
“Our shared goals of reducing greenhouse gas emissions and supporting our farmers and producers don’t have to be in conflict if we invest in solutions that can do both,” Axne said. “Ethanol cuts carbon emissions by upwards of 61 percent compared to regular fossil fuels, and expanding use of higher blends like E15 and higher will create more opportunity for Iowa’s rural communities while reducing the pollutants we’re putting in our air. This commonsense, bipartisan proposal will make the investments we need to ensure clean renewable fuels can be used from coast to coast.”
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Companion legislation was introduced in the U.S. Senate by Sen. Amy Klobuchar, D-Minn.
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