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Legislative Session Recap

2020 IOWA LEGISLATIVE SUMMARY 

On Sunday June 14, State Lawmakers wrapped up the 2020 Iowa Legislative Session. The 2020 Session was suspended in March due to the Covid-19 pandemic resulting in a nearly three-month delay. Upon returning to the State Capitol on June 3, Lawmakers acted swiftly on priority policy bills and a state budget.

State Lawmakers declined to act on proposals related to Iowa’s Beverage Container Control Law commonly referred to as the Bottle Law. FUELIowa supports future efforts at reforming Iowa’s Beverage Container Control Law where reform focuses on removing cans and bottles from establishments that sell food while ensuring that Iowan’s have better access to redemption centers.

Lawmakers also declined to act on legislation that would have transferred administrative oversight of Iowa’s Underground Storage Tank Fund to the Iowa Department of Natural Resources and dissolved the current Iowa Underground Storage Tank Fund Board of Directors. Access to funding for tank pulls, No-Further-Action Re-openers, and operator training will remain available for another year.

Last, FUELIowa’s primary objective during the 2020 Session was to expand access for FUELIowa members to state grant assistance for the upgrade of fueling infrastructure necessary to sell E15. The impact of Covid-19 on state revenues paired with budget concerns derailed our effort. FUELIowa will continue to focus our discussions with Lawmakers on the importance of expanding access to infrastructure investment dollars for retail operators. The preservation of Iowa’s rural fuel distribution network is a FUELIowa priority looking forward to the 2021 Iowa Legislative Session. The following legislation was passed by State Lawmakers and signed by Iowa Governor Kim Reynolds:

HOUSE FILE 2641 DEPARTMENT OF REVENUE UPDATE, COVID-19 TAX MATTERS

Division XIV excludes the forgiven loan proceeds a business receives through the federal Paycheck Protection Program (PPP) from taxable income for Iowa income tax purposes.

Division XV exempts the income taxpayers receive through the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act in the form of emergency student grants from Iowa income tax. The exemption applies to any tax year ending after March 27, 2020.

Division XVI exempts the income taxpayers receive through the federal CARES Act in the form of stimulus tax refund payments from the Iowa income tax. The CARES Act payments equal a maximum of $1,200 per taxpayer and $500 per dependent. Division XVIII exempts any financial assistance grant provided to a business by the Iowa Economic Development Authority under the Iowa Small Business Relief Grant Program from Iowa income tax. The change is effective upon enactment and applies retroactively to any tax year ending on or after March 23, 2020.

Division XIX changes how Iowa tax law couples with federal Internal Revenue Service Code references to depreciation schedules known as “Section 179 expensing.” The current coupling provision in the Iowa Code does not automatically couple with future changes to the federal tax code related to Section 179 expensing. With this change, Iowa will automatically couple with future federal tax law changes.

HOUSE FILE 2642 RENEWABLE FUELS INFRASTRUCTURE FUND

Appropriates $3,000,000 to the Iowa Renewable Fuel Infrastructure Grant Program for ethanol and biodiesel infrastructure upgrades. This is the same level of funding that the program has received in prior years.

SENATE FILE 2268 SMOKING AND VAPING AGE TO 21

Changes the legal age for purchasing and using any cigarettes, tobacco, tobacco products, alternative nicotine products, and vapor products from 18 to 21 years of age.  The federal Further Consolidated Appropriations Act for FFY 2020 (Public Law No. 116- 94), passed in December 2019, changed the minimum age for smoking from 18 to 21 years of age

HOUSE FILE 2581 HEMP PRODUCTS

House File 2581 regulates hemp as a commodity and allows for the manufacture, sale, and consumption of consumable hemp products by humans if all the following provisions apply:

• The consumable hemp product was manufactured in Iowa in compliance with Iowa Code chapter 204.

• The hemp contained in the consumable hemp product was produced exclusively in Iowa in compliance with Iowa Code chapter 204.

• The consumable hemp product complies with certain packaging and labeling requirements.

SENATE FILE 2403 ETHANOL AND BIODIESEL DIFFERENTIAL

Beginning July 1, 2020, Senate File 2403 imposes a 30-cent excise tax on ethanol blends under E-15 and a 24-cent excise tax on E15 plus blends. The tax differential is based on the distribution percentage for E15 plus blends as a share of all gasoline gallons sold in Iowa. As E15 plus blends gain market share, the differential will decrease. Excise tax rates will be determined on July 1 each year through 2026. Senate File 2403 also extends the B11 excise tax structure through July 1, 2026.







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