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SF 2188IOWASession 2025-2026State BillSigned into law
Enacted

Iowa exempts high-blend ethanol fuel used in farm machinery from excise tax

Original title: A bill for an act relating to the excise tax on certain ethanol blended gasoline purchased exclusively for use in an implement of husbandry used in agricultural production.(Formerly SSB 3025 ; See SF 2493 .)

Last action · June 1, 2026: Signed by Governor . S.J. 1033 .

Bill progressHistory & official text ↓
Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Does

Iowa exempts ethanol blended gasoline containing more than 85 percent ethanol from the state when purchased exclusively for use in agricultural farm machinery. Purchasers must provide a completed exemption certificate to suppliers, and suppliers must retain these certificates for at least three years. Purchasers who use the tax-free fuel for nonexempt purposes are solely liable for paying the excise tax directly to the department.

Why it matters

Agricultural producers purchasing high-blend ethanol fuel for farm equipment avoid paying the state at the time of purchase, provided they maintain proper documentation, shifting tax liability directly to the purchaser if the fuel is used improperly.

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

Agricultural producers

Agricultural producers purchasing high-blend ethanol fuel for farm machinery are exempt from paying the state excise tax at the time of purchase upon providing an exemption certificate.

Directly affected

Fuel suppliers

Fuel suppliers must collect and retain signed exemption certificates for at least three years for tax-free sales of qualifying ethanol blended gasoline.

Key Facts

  • The excise tax is not imposed or collected on ethanol blended gasoline formulated with more than 85 percent by volume of ethanol when purchased exclusively for use in an implement of husbandry used in agricultural production.
  • Purchasers of tax-exempt fuel must substantiate the purchase with a complete and correct exemption certificate provided by the department, signed by the purchaser, and retained by the supplier.
  • Suppliers must retain exemption certificates for at least three years.
  • The department shall disallow all sales of gallonage described in the section unless proof is established by an exemption certificate.
Show all 5 facts
  • A purchaser who uses or disposes of fuel purchased with an exemption certificate in a nonexempt manner is solely liable for the excise tax and must remit it directly to the department.

Frequently Asked Questions

What kind of fuel qualifies for the excise tax exemption?
Ethanol blended gasoline formulated with more than 85 percent by volume of ethanol, purchased exclusively for use in an used in agricultural production, qualifies for the exemption.
What happens if someone uses the tax-exempt fuel for a nonexempt purpose?
The purchaser becomes solely liable for the and is required to remit the tax directly to the department.

What else do you want to know?

News Coverage

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Where This Stands

Current status: Signed into law.

Procedural history

44 actions
  1. Jun 1, 2026SenateEnrolled
    Signed by Governor . S.J. 1033 .
  2. May 11, 2026Senate
    Reported correctly enrolled, signed by President and Speaker, and sent to Governor. S.J. 1028 .
  3. May 2, 2026House
    Withdrawn. H.J. 1127 .
  4. May 2, 2026House
    SF 2493 substituted. H.J. 1120 .
  5. May 2, 2026House
    Message from House. S.J. 990 .
  6. May 2, 2026House
    Immediate message. H.J. 1127 .
Show 38 earlier actions
  1. May 2, 2026House
    Explanation of vote. H.J. 1159 .
  2. May 2, 2026HouseFloor
    Passed House , yeas 85, nays 1. H.J. 1121 .
  3. May 2, 2026House
    Substituted for HF 2798 . H.J. 1120 .
  4. May 2, 2026House
    Passed on file. H.J. 1120 .
  5. May 1, 2026HouseIntroduced
    Introduced, placed on Ways and Means calendar. H.J. 1071 .
  6. May 1, 2026Iowa Legislature
    Committee report approving bill, renumbered as HF 2798 .
  7. May 1, 2026House
    Committee vote: Yeas, 24. Nays, 0. Excused, 1. H.J. 1083 .
  8. May 1, 2026House
    Committee report, recommending passage. H.J. 1083 .
  9. Apr 22, 2026HouseIntroduced
    Read first time, referred to Ways and Means. H.J. 978 .
  10. Apr 22, 2026House
    Message from Senate. H.J. 977 .
  11. Apr 22, 2026Senate
    Immediate message. S.J. 866 .
  12. Apr 22, 2026SenateFloor
    Passed Senate , yeas 44, nays 0. S.J. 865 .
  13. Apr 15, 2026Senate
    Committee report, approving bill. S.J. 807 .
  14. Apr 15, 2026SenateIntroduced
    Introduced, placed on Ways and Means calendar. S.J. 804 .
  15. Apr 15, 2026Senate
    Committee report approving bill, renumbered as SF 2493 . S.J. 807 .
  16. Mar 11, 2026Iowa Legislature
    Subcommittee recommends passage.
  17. Mar 10, 2026Iowa Legislature
    Subcommittee Meeting: 03/11/2026 11:00AM Room 315.
  18. Mar 4, 2026Iowa Legislature
    Subcommittee recommends passage.
  19. Mar 4, 2026House
    Subcommittee Meeting: 03/04/2026 12:00PM House Lounge.
  20. Feb 23, 2026House
    Subcommittee: Jones, Boden and Wilson. H.J. 395 .
  21. Feb 10, 2026Senate
    Subcommittee: Taylor, Dotzler, and Gruenhagen. S.J. 243 .
  22. Feb 9, 2026HouseIntroduced
    Introduced, referred to Ways and Means. H.J. 232 .
  23. Feb 9, 2026Iowa Legislature
    Committee report approving bill, renumbered as HF 2343 .
  24. Feb 9, 2026SenateCommittee
    Referred to Ways and Means. S.J. 221 .
  25. Feb 4, 2026House
    Committee vote: Yeas, 21. Nays, 0. Excused, 0. H.J. 231 .
  26. Feb 4, 2026House
    Committee report, recommending amendment and passage. H.J. 231 .
  27. Feb 4, 2026Senate
    Committee report, approving bill. S.J. 204 .
  28. Feb 4, 2026SenateIntroduced
    Introduced, placed on calendar. S.J. 196 .
  29. Feb 3, 2026Iowa Legislature
    Subcommittee recommends passage.
  30. Feb 3, 2026Iowa Legislature
    Committee report approving bill, renumbered as SF 2188 .
  31. Jan 28, 2026Iowa Legislature
    Subcommittee Meeting: 02/03/2026 12:15PM RM 304.
  32. Jan 28, 2026House
    Subcommittee Meeting: 02/05/2026 12:00PM House Lounge 2 (Cancelled).
  33. Jan 20, 2026Iowa Legislature
    Subcommittee recommends passage.
  34. Jan 15, 2026Iowa Legislature
    Subcommittee Meeting: 01/20/2026 11:00AM Room G15.
  35. Jan 14, 2026House
    Subcommittee: Jones, Bagniewski and Bossman. H.J. 99 .
  36. Jan 14, 2026HouseIntroduced
    Introduced, referred to Transportation. H.J. 96 .
  37. Jan 14, 2026Iowa Legislature
    Subcommittee: Zumbach, Costello, and Zimmer.
  38. Jan 14, 2026Iowa LegislatureIntroduced
    Introduced, referred to Transportation.

Version history

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Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Connected Entities

General Assembly of the State of Iowa, Iowa Department of Revenue
OrganizationGeneral Assembly of the State of Iowa“The legislative body enacting the bill”Map →
OrganizationIowa Department of Revenue“Department providing exemption certificates and disallowing sales without proof”Map →

Sources

Open source document

www.legis.iowa.gov

Analysis Score

0–100
  • Significance60
    How much this matters to a regular citizen
  • Controversy10
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz25
    Current news / social attention level

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