B11 fuel tax exemption goes into effect July 1

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Truckers, motorists and biodiesel producers alike will soon benefit from a tax savings in Iowa. Beginning July 1, diesel blended with at least 11 percent biodiesel (B11) will receive a tax exemption of 3 cents a gallon compared with regular diesel. The exemption is part of the state fuel tax legislation that was signed into law in February by Gov. Terry Branstad that raised gasoline and diesel taxes by 10 cents per gallon. The 3-cent exemption for B11 and above will be in effect for five years. Prior to 2015, the tax for diesel was 22.5 cents a gallon. The new diesel tax, already in effect, is 32.5 cents a gallon. Users of B11 or higher will now pay tax of 29.5 cents a gallon.