Iowa Governor Signs Package of Bills to Strengthen Renewable Energy and Bio-Energy Industries

On May 30, 2006, Iowa Governor Tom Vilsack signed into law a package of bills designed to strengthen Iowa’s bio-energy and other renewable energy industries. The bills offer a variety of incentives to expand the use of E-85 (a mixture of 85% ethanol and 15% gasoline), including a 25-cent-per-gallon tax break for every gallon of E85 sold, and set a standard requiring that 25 percent of the petroleum used in the formulation of gasoline be replaced by biofuel by 2020. The measures also create a sales tax exemption for the purchase of solar energy equipment, expand an existing tax credit for wind energy production, and give utilities a tax credit for using soy-based fluids in electric transformers.

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