Text: HF00715 Text: HF00717 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 716 1 2 1 3 AN ACT 1 4 PROVIDING FOR TAXES RELATING TO ETHANOL BLENDED GASOLINE, 1 5 MAKING PENALTIES APPLICABLE, AND PROVIDING FOR THE ACT'S 1 6 APPLICABILITY. 1 7 1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 9 1 10 Section 1. Section 15.333, subsection 1, Code Supplement 1 11 1999, as amended by 2000 Iowa Acts, chapter 1213, section 1, 1 12 is amended to read as follows: 1 13 1. An eligible business may claim a corporate tax credit 1 14 up to a maximum of ten percent of the new investment which is 1 15 directly related to new jobs created by the location or 1 16 expansion of an eligible business under the program. Any 1 17 credit in excess of the tax liability for the tax year may be 1 18 credited to the tax liability for the following seven years or 1 19 until depleted, whichever occurs earlier. Subject to prior 1 20 approval by the department of economic development in 1 21 consultation with the department of revenue and finance, an 1 22 eligible business whose project primarily involves the 1 23 production of value-added agricultural products may elect to 1 24 refund all or a portion of an unused tax credit. For purposes 1 25 of this section, an eligible business includes a cooperative 1 26 described in section 521 of the Internal Revenue Code which is 1 27 not required to file an Iowa corporate income tax return, and 1 28 whose project primarily involves the production of ethanol. 1 29 The refund may be used against a tax liability imposed under 1 30 chapter 422, division II, III, or V. If the business is a 1 31 partnership, subchapter S corporation, limited liability 1 32 company, or estate or trust electing to have the income taxed 1 33 directly to the individual, an individual may claim the tax 1 34 credit allowed. The amount claimed by the individual shall be 1 35 based upon the pro rata share of the individual's earnings of 2 1 the partnership, subchapter S corporation, limited liability 2 2 company, or estate or trust. For purposes of this section, 2 3 "new investment directly related to new jobs created by the 2 4 location or expansion of an eligible business under the 2 5 program" means the cost of machinery and equipment, as defined 2 6 in section 427A.1, subsection 1, paragraphs "e" and "j", 2 7 purchased for use in the operation of the eligible business, 2 8 the purchase price of which has been depreciated in accordance 2 9 with generally accepted accounting principles, and the cost of 2 10 improvements made to real property which is used in the 2 11 operation of the eligible business and which receives a 2 12 partial property tax exemption for the actual value added 2 13 under section 15.332. 2 14 1A. An eligible business whose project primarily involves 2 15 the production of value-added agricultural products, that 2 16 elects to receive a refund of all or a portion of an unused 2 17 tax credit, shall apply to the department of economic 2 18 development for tax credit certificates. An eligible business 2 19 whose project primarily involves the production of value-added 2 20 agricultural products shall not claim a tax credit under this 2 21 section unless a tax credit certificate issued by the 2 22 department of economic development is attached to the 2 23 taxpayer's tax return for the tax year during which the tax 2 24 credit is claimed. For purposes of this section, an eligible 2 25 business includes a cooperative described in section 521 of 2 26 the Internal Revenue Code which is not required to file an 2 27 Iowa corporate income tax return, and whose project primarily 2 28 involves the production of ethanol. A tax credit certificate 2 29 shall not be valid until the tax year following the date of 2 30 the project completion. A tax credit certificate shall 2 31 contain the taxpayer's name, address, tax identification 2 32 number, the date of project completion, the amount of the tax 2 33 credit, other information required by the department of 2 34 revenue and finance. The department of economic development 2 35 shall not issue tax credit certificates which total more than 3 1 four million dollars during a fiscal year. If the department 3 2 receives applications for tax credit certificates in excess of 3 3 four million dollars, the applicants shall receive 3 4 certificates for a prorated amount. The tax credit 3 5 certificates shall not be transferred. For a cooperative 3 6 described in section 521 of the Internal Revenue Code that is 3 7 not required to file an Iowa corporate income tax return, the 3 8 department of economic development shall require that the 3 9 cooperative submit a list of its members and the share of each 3 10 member's interest in the cooperative. The department shall 3 11 issue a tax credit certificate to each member contained on the 3 12 submitted list. 3 13 Sec. 2. NEW SECTION. 422.11C ETHANOL BLENDED GASOLINE 3 14 TAX CREDIT. 3 15 1. As used in this section, unless the context otherwise 3 16 requires: 3 17 a. "Ethanol blended gasoline" means the same as defined in 3 18 section 452A.2. 3 19 b. "Gasoline" means gasoline that meets the specifications 3 20 required by the department of agriculture and land stewardship 3 21 pursuant to section 214A.2 that is dispensed through a metered 3 22 pump. 3 23 c. "Metered pump" means a motor vehicle fuel pump licensed 3 24 by the department of agriculture and land stewardship pursuant 3 25 to chapter 214. 3 26 d. "Retail dealer" means a retail dealer as defined in 3 27 section 214A.1 who operates a metered pump at a service 3 28 station. 3 29 e. "Sell" means to sell on a retail basis. 3 30 f. "Service station" means each geographic location in 3 31 this state where a retail dealer sells and dispenses gasoline 3 32 on a retail basis. 3 33 g. "Tax credit" means the designated ethanol blended 3 34 gasoline tax credit as provided in this section. 3 35 2. The taxes imposed under this division, less the credits 4 1 allowed under sections 422.12 and 422.12B, shall be reduced by 4 2 an ethanol blended gasoline tax credit for each tax year that 4 3 the taxpayer is eligible to claim the tax credit under this 4 4 section. In order to be eligible, all of the following must 4 5 apply: 4 6 a. The taxpayer is a retail dealer. 4 7 b. The taxpayer operates at least one service station at 4 8 which more than sixty percent of the total gallons of gasoline 4 9 sold and dispensed through one or more metered pumps by the 4 10 taxpayer in the tax year is ethanol blended gasoline. 4 11 c. The taxpayer complies with requirements of the 4 12 department required to administer this section. 4 13 3. The tax credit shall be calculated separately for each 4 14 service station site operated by the taxpayer. The amount of 4 15 the tax credit for each eligible service station is two and 4 16 one-half cents multiplied by the total number of gallons of 4 17 ethanol blended gasoline sold and dispensed through all 4 18 metered pumps located at that service station during the tax 4 19 year in excess of sixty percent of all gasoline sold and 4 20 dispensed through metered pumps at that service station during 4 21 the tax year. 4 22 4. Any credit in excess of the taxpayer's tax liability 4 23 shall be refunded. In lieu of claiming a refund, the taxpayer 4 24 may elect to have the overpayment shown on the taxpayer's 4 25 final, completed return credited to the tax liability for the 4 26 following tax year. 4 27 5. An individual may claim the tax credit allowed a 4 28 partnership, limited liability company, S corporation, estate, 4 29 or trust electing to have the income taxed directly to the 4 30 individual. The amount claimed by the individual shall be 4 31 based upon the pro rata share of the individual's earnings of 4 32 a partnership, limited liability company, S corporation, 4 33 estate, or trust. 4 34 Sec. 3. Section 422.33, Code 2001, is amended by adding 4 35 the following new subsection: 5 1 NEW SUBSECTION. 11. a. As used in this subsection, 5 2 unless the context otherwise requires: 5 3 (1) "Ethanol blended gasoline", "gasoline", "metered 5 4 pump", "retail dealer", "sell", and "service station" mean the 5 5 same as defined in section 422.11C. 5 6 (2) "Tax credit" means the designated ethanol blended 5 7 gasoline tax credit as provided in this subsection. 5 8 b. The taxes imposed under this division shall be reduced 5 9 by an ethanol blended gasoline tax credit for each tax year 5 10 that the taxpayer is eligible to claim the tax credit under 5 11 this subsection. In order to be eligible, all of the 5 12 following must apply: 5 13 (1) The taxpayer is a retail dealer. 5 14 (2) The taxpayer operates at least one service station at 5 15 which more than sixty percent of the total gallons of gasoline 5 16 sold and dispensed through one or more metered pumps by the 5 17 taxpayer is ethanol blended gasoline. 5 18 (3) The taxpayer complies with requirements of the 5 19 department required to administer this subsection. 5 20 c. The tax credit shall be calculated separately for each 5 21 service station site operated by the taxpayer. The amount of 5 22 the tax credit for each eligible service station is two and 5 23 one-half cents multiplied by the total number of gallons of 5 24 ethanol blended gasoline sold and dispensed through all 5 25 metered pumps located at that service station during the tax 5 26 year in excess of sixty percent of all gasoline sold and 5 27 dispensed through metered pumps at that service station during 5 28 the tax year. 5 29 d. Any credit in excess of the taxpayer's tax liability 5 30 shall be refunded. In lieu of claiming a refund, the taxpayer 5 31 may elect to have the overpayment shown on the taxpayer's 5 32 final, completed return credited to the tax liability for the 5 33 following tax year. 5 34 Sec. 4. Section 452A.3, subsection 1, Code 2001, is 5 35 amended by striking the subsection and inserting in lieu 6 1 thereof the following: 6 2 1. Except as otherwise provided in this section and in 6 3 this division, until June 30, 2007, this subsection shall 6 4 apply to the excise tax imposed on each gallon of motor fuel 6 5 used for any purpose for the privilege of operating motor 6 6 vehicles in this state. 6 7 a. The rate of the excise tax shall be based on the number 6 8 of gallons of ethanol blended gasoline that is distributed in 6 9 this state as expressed as a percentage of the number of 6 10 gallons of motor fuel distributed in this state, which is 6 11 referred to as the distribution percentage. The department 6 12 shall determine the percentage basis for each determination 6 13 period beginning January 1 and ending December 31. The rate 6 14 for the excise tax shall apply for the period beginning July 1 6 15 and ending June 30 following the end of the determination 6 16 period. 6 17 b. The rate for the excise tax shall be as follows: 6 18 (1) If the distribution percentage is not greater than 6 19 fifty percent, the rate shall be nineteen cents for ethanol 6 20 blended gasoline and twenty cents for motor fuel other than 6 21 ethanol blended gasoline. 6 22 (2) If the distribution percentage is greater than fifty 6 23 percent but not greater than fifty-five percent, the rate 6 24 shall be nineteen cents for ethanol blended gasoline and 6 25 twenty and one-tenth cents for motor fuel other than ethanol 6 26 blended gasoline. 6 27 (3) If the distribution percentage is greater than fifty- 6 28 five percent but not greater than sixty percent, the rate 6 29 shall be nineteen cents for ethanol blended gasoline and 6 30 twenty and three-tenths cents for motor fuel other than 6 31 ethanol blended gasoline. 6 32 (4) If the distribution percentage is greater than sixty 6 33 percent but not greater than sixty-five percent, the rate 6 34 shall be nineteen cents for ethanol blended gasoline and 6 35 twenty and five-tenths cents for motor fuel other than ethanol 7 1 blended gasoline. 7 2 (5) If the distribution percentage is greater than sixty- 7 3 five percent but not greater than seventy percent, the rate 7 4 shall be nineteen cents for ethanol blended gasoline and 7 5 twenty and seven-tenths cents for motor fuel other than 7 6 ethanol blended gasoline. 7 7 (6) If the distribution percentage is greater than seventy 7 8 percent but not greater than seventy-five percent, the rate 7 9 shall be nineteen cents for ethanol blended gasoline and 7 10 twenty-one cents for motor fuel other than ethanol blended 7 11 gasoline. 7 12 (7) If the distribution percentage is greater than 7 13 seventy-five percent but not greater than eighty percent, the 7 14 rate shall be nineteen and three-tenths cents for ethanol 7 15 blended gasoline and twenty and eight-tenths cents for motor 7 16 fuel other than ethanol blended gasoline. 7 17 (8) If the distribution percentage is greater than eighty 7 18 percent but not greater than eighty-five percent, the rate 7 19 shall be nineteen and five-tenths cents for ethanol blended 7 20 gasoline and twenty and seven-tenths cents for motor fuel 7 21 other than ethanol blended gasoline. 7 22 (9) If the distribution percentage is greater than eighty- 7 23 five percent but not greater than ninety percent, the rate 7 24 shall be nineteen and seven-tenths cents for ethanol blended 7 25 gasoline and twenty and four-tenths cents for motor fuel other 7 26 than ethanol blended gasoline. 7 27 (10) If the distribution percentage is greater than ninety 7 28 percent but not greater than ninety-five percent, the rate 7 29 shall be nineteen and nine-tenths cents for ethanol blended 7 30 gasoline and twenty and one-tenth cents for motor fuel other 7 31 than ethanol blended gasoline. 7 32 (11) If the distribution percentage is greater than 7 33 ninety-five percent, the rate shall be twenty cents for 7 34 ethanol blended gasoline and twenty cents for motor fuel other 7 35 than ethanol blended gasoline. 8 1 1A. Except as otherwise provided in this section and in 8 2 this division, after June 30, 2007, an excise tax of twenty 8 3 cents is imposed on each gallon of motor fuel used for any 8 4 purpose for the privilege of operating motor vehicles in this 8 5 state. 8 6 Sec. 5. Section 452A.3, subsection 2, paragraph b, Code 8 7 2001, is amended by striking the paragraph. 8 8 Sec. 6. APPLICABILITY. 8 9 1. Notwithstanding section 452A.3, as amended in this Act, 8 10 the excise tax imposed upon motor vehicle fuel, including 8 11 ethanol blended gasoline, as provided in that section shall be 8 12 the same as provided in that section on June 30, 2001, until 8 13 July 1, 2002. The excise tax for the period beginning July 1, 8 14 2002, and ending June 30, 2003, and for each subsequent 8 15 period, shall be based on a determination made by the 8 16 department of revenue and finance as provided in section 8 17 452A.3, subsection 1. 8 18 2. The ethanol blended gasoline tax credits provided in 8 19 sections 422.11C and 422.33 apply to tax years beginning on or 8 20 after January 1, 2002. The department of revenue and finance 8 21 shall perform functions, prior to the beginning of that tax 8 22 year, necessary in order to implement the tax credits. 8 23 8 24 8 25 8 26 BRENT SIEGRIST 8 27 Speaker of the House 8 28 8 29 8 30 8 31 MARY E. KRAMER 8 32 President of the Senate 8 33 8 34 I hereby certify that this bill originated in the House and 8 35 is known as House File 716, Seventy-ninth General Assembly. 9 1 9 2 9 3 9 4 MARGARET THOMSON 9 5 Chief Clerk of the House 9 6 Approved , 2001 9 7 9 8 9 9 9 10 THOMAS J. VILSACK 9 11 Governor
Text: HF00715 Text: HF00717 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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