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Petroleum Distributors' Guide to Biodiesel

Insert picture hereIf You're Not Blending, You're Losing

Iowa incentives, combined with federal programs,
help make the economics favorable for blending Iowa
biodiesel into diesel. 

State Incentive Programs

Biodiesel Retailer Credit 

  • Retailers carrying biodiesel blends can claim a per-gallon incentive. Effective January 1, 2023:
    • B5-B11: $0.035/gallon through Dec. 31, 2022
    • B11-B19: $0.05/gallon through Dec. 31, 2027
    • B20-B29: $0.07/gallon through Dec. 31, 2027
    • B30+: $0.10/gallon through Dec. 31, 2027

        Apply for the Blenders Tax Credit (form 8864)

Fuel Tax Differential 

  • B11 Fuel Tax Differential: A 3-cent differential in Fuel Tax for blends of 11 percent or higher.
  • Effective July 1, 2024:
    • B20 or higher with an eroding $0.03 differential based on market share
    • Sunsets June 30, 2030

Renewable Fuels Infrastructure Program: Funds upgrades to petroleum equipment to grow renewable fuel availability in Iowa. 


Insert picture hereOther resources:

DOE's Handling & Use Guide (PDF)

Clean Fuels Alliance America website

Help customers find you on the national map!

 

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