Petroleum Distributors' Guide to Biodiesel
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.
DOE's Handling & Use Guide (PDF)
Clean Fuels Alliance America website
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