Iowa Biodiesel Blended Fuel Tax Credit
The Iowa Biodiesel Blended Fuel Tax Credit (Form IA 8864) is designed to encourage the use of biodiesel blends in Iowa by providing a tax credit to retailers who sell biodiesel-blended fuels. This credit applies to fuels containing between 20% and 29% pure biodiesel (B20-B29 blends).
Eligibility and Credit Amount
- Applies to biodiesel blended fuel sold at retail in Iowa.
- Credit rate: $0.07 (seven cents) per gallon for B20-B29 blends.
- Must report total gallons sold during the tax year.
How to Claim the Credit
To claim the Iowa Biodiesel Blended Fuel Tax Credit, follow these steps:
- From within your tax return (Online), click on "State" in the left menu.
- Select "Start or Revisit Iowa state."
- Under the "Credits" section, choose "IA 8864 - Biodiesel Blended Fuel Tax Credit."
- Click "Save & Continue Return" and follow on-screen instructions.
Reporting Requirements
- Report total gallons of biodiesel blended fuel (B20-B29) sold at retail in Iowa.
- Calculate credit by multiplying total gallons by $0.07 per gallon.
- Include pass-through credits from partnerships, LLCs, S corporations, estates, or trusts (Line 7).
Important Notes
The credit is only available for fuels sold at retail in Iowa. Retailers must maintain records of gallons sold and ensure compliance with Iowa Department of Revenue guidelines.
Source:
Form IA 8864 (Biodiesel Blended Fuel Tax Credit)
Iowa State Instruction
Disclaimer: Always verify details with the official Federal or State Department of Revenue Forms and Instructions.