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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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