Iowa Senate approves tax break for ethanol fuel

Associated Press  • Posted: Monday, May 20, 2013

DES MOINES, IOWA (AP) — An effort to maintain a tax break for ethanol blended fuel has won state Senate approval.

The Iowa Senate on Thursday backed a bill that would extend a tax break for fuel that includes ethanol and gasoline for another year. Currently, ethanol blends are taxed at 20 cents a gallon and pure petroleum is taxed at 22 cents a gallon. Those numbers include a 1 cent environmental fee.

Without this bill, both types of fuel would soon be taxed at 21 cents total.

The legislation has been amended, so it now moves to the House for approval.

Representative Joshua Byrnes, a Republican from Osage, filed an amendment Thursday that would gradually increase the state fuel tax by 10 cents. It’s not clear the effort has enough support to pass.