 |
| CLICK HERE TO VIEW CURRENT ISSUE |
 |
| Best of NAMA 2026 |
|
 |
|
IOWA GOVERNOR SIGNS BILL ELIMINATING EXCISE FUEL TAX FOR AG EQUIPMENT
Jun. 2, 2026
BrownfieldAgNews reports:
 |
|---|
| Brownfield | | Iowa Governor Kim Reynolds signs Senate File 2493 into law on June 1, 2026. The new law eliminates the state excise tax on fuels containing more than 85% by volume of ethanol when purchased for use in agricultural equipment |
Des Moines, IA -- Iowa Governor Kim Reynolds has signed a bill intended to expand the use of ag equipment fueled by higher ethanol blends.
"Senate File 2493 eliminates the excise tax on fuels containing more than 85% by volume of ethanol when purchased for use in agricultural equipment," the governor said.
At a State Capitol ceremony Monday, Reynolds said the law highlights the potential for higher renewable fuel blends in agricultural equipment, including the John Deere E98 Ethanol Prototype 8R tractor.
Deanna Kovar, president of John Deere's Ag and Turf Division, tells Brownfield the prototype has 350 horsepower.
"We're excited with the torque curves that we're seeing," Kovar said. "It is a diesel-like performance with E98. There's no diesel exhaust fluid (DEF) needed in this tractor, so lots of positive. Every farmer I've talked to is asking when they can get it."
Eastern Iowa farmer Lance Lillibridge says he was selected to test out the E98 tractor on his operation.
"I clearly think the ethanol tractor outperformed the diesel tractor," Lillibridge said. "Not only in how it pulled the equipment, but just in the efficiency and the fact that we're going to be spending less on a gallon of fuel to run this."
Lillibridge says ending the excise tax on higher ethanol blends used in farm equipment improves the economics for growers considering those machines.
|
|
|
|
|
