The Iowa E15 Plus Gasoline Promotion Tax Credit is a state tax incentive available to retail gasoline dealers in Iowa who operate fuel pumps at retail fuel sites, including tank wagons. This credit is designed to encourage the sale of gasoline blended with ethanol at levels of 15% or higher (E15 and above), but not classified as E85 gasoline. The ethanol blend must fall within a range of 15% to 67% by volume.
Eligibility
- Must be a retail dealer of gasoline.
- Must operate fuel pumps at an Iowa retail fuel site, including a tank wagon.
- Must sell qualifying E15 Plus gasoline containing at least 15% but not more than 67% ethanol by volume.
- The gasoline must not be classified as E85 gasoline.
- The credit is equal to 9 cents per gallon of qualifying E15 Plus gasoline sold during the tax year.
Reporting Requirements
- Claim the credit by completing Form IA 138, Iowa E15 Plus Gasoline Promotion Tax Credit.
- Report the credit on Form IA 148, Tax Credits Schedule — all credits must flow through IA 148 unless directly claimed on IA 1040.
- Pass-through entities must allocate the credit to their owners based on each owner’s pro rata share of the entity’s earnings.
- Any credit that exceeds the taxpayer’s Iowa tax liability is refundable. If not refunded, the excess may be carried forward to the following year’s tax liability, as provided in the Iowa Department of Revenue instructions.
Tax Rule Reference
The Iowa E15 Plus Gasoline Promotion Tax Credit is established under Iowa law and administered by the Iowa Department of Revenue.
Source:
Form IA 138: 2025 Iowa E15 Plus Gasoline Promotion Tax Credit
Disclaimer: Always verify details with the official Federal or State Department of Revenue Forms and Instructions. This information is for general guidance and may not apply to all situations. For complex tax matters, consult a CPA or tax attorney.