Text: HSB00120 Text: HSB00122 Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 422.11C DESIGNATED ETHANOL
1 2 BLENDED GASOLINE TAX CREDIT.
1 3 1. As used in this section, unless the context otherwise
1 4 requires:
1 5 a. "Dealer" means a dealer as defined in section 452A.2
1 6 who is licensed pursuant to section 452A.4.
1 7 b. "Designated ethanol blended gasoline" or "designated
1 8 gasoline" means ethanol blended gasoline having an octane
1 9 number of less than eighty nine according to standards adopted
1 10 by the department of agriculture and land stewardship pursuant
1 11 to section 214A.2.
1 12 c. "Ethanol blended gasoline" means the same as defined in
1 13 section 452A.2.
1 14 d. "Gasoline" means gasoline that meets the specifications
1 15 required by the department of agriculture and land stewardship
1 16 pursuant to section 214A.2 that is dispensed through a metered
1 17 pump.
1 18 e. "Metered pump" means a motor vehicle fuel pump licensed
1 19 by the department of agriculture and land stewardship pursuant
1 20 to chapter 214.
1 21 f. "Sell" means to sell on a retail basis.
1 22 g. "Tax credit" means the designated ethanol blended
1 23 gasoline tax credit as provided in this section.
1 24 2. The taxes imposed under this division, less the credits
1 25 allowed under sections 422.12 and 422.12B, shall be reduced by
1 26 a designated ethanol blended gasoline tax credit for each tax
1 27 year that the taxpayer is eligible to claim the tax credit
1 28 under this section. In order to be eligible, all of the
1 29 following must apply:
1 30 a. The taxpayer is a dealer.
1 31 b. More than sixty percent of gasoline sold and dispensed
1 32 through a metered pump by the taxpayer is designated gasoline.
1 33 c. The taxpayer complies with requirements of the
1 34 department required to administer this section. The
1 35 department may require that a dealer claiming a tax credit be
2 1 certified to claim the tax credit, maintain records that the
2 2 dealer is eligible for the tax credit, or periodically report
2 3 to the department information that for each location at which
2 4 gasoline is dispensed, the total amount of gasoline sold and
2 5 dispensed through metered pumps, the amount of the gasoline
2 6 classified as designated ethanol blended gasoline sold and
2 7 dispensed through metered pumps, and the percentage of
2 8 gasoline sold and dispensed through metered pumps that is
2 9 classified as designated ethanol blended gasoline. The
2 10 department may make the requirements applicable under this
2 11 section or section 452A.9A.
2 12 A certificate, record, or report required under this
2 13 subsection shall be certified by the dealer under penalties
2 14 for false certification as provided in section 714.8.
2 15 3. The amount of the tax credit is equal to the product of
2 16 two cents multiplied by the total number of gallons of
2 17 designated gasoline that is sold and dispensed through a
2 18 metered pump by the taxpayer for the tax year.
2 19 4. Any credit in excess of the taxpayer's tax liability
2 20 shall be refunded. In lieu of claiming a refund, the taxpayer
2 21 may elect to have the overpayment shown on the taxpayer's
2 22 final, completed return credited to the tax liability for the
2 23 following tax year.
2 24 5. An individual may claim the tax credit allowed a
2 25 partnership, limited liability company, S corporation, estate,
2 26 or trust electing to have the income taxed directly to the
2 27 individual. The amount claimed by the individual shall be
2 28 based upon the pro rata share of the individual's earnings of
2 29 a partnership, limited liability company, S corporation,
2 30 estate, or trust.
2 31 Sec. 2. Section 422.33, Code 2001, is amended by adding
2 32 the following new subsection:
2 33 NEW SUBSECTION. 11. a. As used in this subsection,
2 34 unless the context otherwise requires:
2 35 (1) "Dealer", "designated ethanol blended gasoline",
3 1 "designated ethanol blended gasoline" or "designated
3 2 gasoline", "gasoline", "metered pump", and "sell" mean the
3 3 same as defined in section 422.11C.
3 4 (2) "Tax credit" means the designated ethanol blended
3 5 gasoline tax credit as provided in this section.
3 6 b. The taxes imposed under this division shall be reduced
3 7 by a designated ethanol blended gasoline tax credit for each
3 8 tax year that the taxpayer is eligible to claim the tax credit
3 9 under this section. In order to be eligible, all of the
3 10 following must apply:
3 11 (1) The taxpayer is a dealer.
3 12 (2) More than sixty percent of gasoline sold and dispensed
3 13 through a metered pump by the taxpayer is designated gasoline.
3 14 (3) The taxpayer complies with requirements of the
3 15 department required to administer this subsection. The
3 16 department may require that a dealer claiming a tax credit be
3 17 certified to claim the tax credit, maintain records that the
3 18 dealer is eligible for the tax credit, or periodically report
3 19 to the department information that for each location at which
3 20 gasoline is dispensed, the total amount of gasoline sold and
3 21 dispensed through metered pumps, the amount of the gasoline
3 22 classified as designated ethanol blended gasoline sold and
3 23 dispensed through metered pumps, and the percentage of
3 24 gasoline sold and dispensed through metered pumps that is
3 25 classified as designated ethanol blended gasoline. The
3 26 department may make the requirements applicable under this
3 27 subsection or section 452A.9A.
3 28 A certificate, record, or report required under
3 29 subparagraph (3) shall be certified by the dealer under
3 30 penalties for false certification as provided in section
3 31 714.8.
3 32 c. The amount of the tax credit is equal to the product of
3 33 two cents multiplied by the total number of gallons of
3 34 designated gasoline that is sold and dispensed through a
3 35 metered pump by the taxpayer for the tax year.
4 1 d. Any credit in excess of the taxpayer's tax liability
4 2 shall be refunded. In lieu of claiming a refund, the taxpayer
4 3 may elect to have the overpayment shown on the taxpayer's
4 4 final, completed return credited to the tax liability for the
4 5 following tax year.
4 6 Sec. 3. NEW SECTION. 452A.9A DESIGNATED ETHANOL BLENDED
4 7 GASOLINE TAX CREDIT.
4 8 The department may require that a dealer claiming a
4 9 designated ethanol blended gasoline tax credit as provided in
4 10 section 422.11C or section 452.33 be certified to claim the
4 11 tax credit, maintain records that the dealer is eligible for
4 12 the tax credit, or periodically report to the department
4 13 information as otherwise required under those provisions as
4 14 part of the department's administration of this chapter.
4 15 Sec. 4. APPLICABILITY. This Act applies to tax years
4 16 beginning on or after January 1, 2002.
4 17 EXPLANATION
4 18 This bill provides an income tax credit for retail dealers
4 19 of gasoline (referred to as "dealers") who sell ethanol
4 20 blended gasoline having an octane number of not less than 89
4 21 (referred to as "designated ethanol blended gasoline" or
4 22 "designated gasoline"). The tax credit applies to both
4 23 taxpayers filing as individuals under Code section 422.11C and
4 24 businesses under Code section 422.33.
4 25 In order to claim the tax credit, more than 60 percent of
4 26 gasoline sold and dispensed through a metered pump by the
4 27 dealer must be designated gasoline. The amount of the tax
4 28 credit is equal to the product of two cents multiplied by the
4 29 total number of gallons of designated gasoline that the dealer
4 30 sells and dispenses. Any credit in excess of the taxpayer's
4 31 tax liability may be refunded or carried over to the following
4 32 tax year. The bill provides that an individual may claim the
4 33 tax credit allowed a partnership, limited liability company, S
4 34 corporation, estate, or trust electing to have the income
4 35 taxed directly to the individual.
5 1 The bill provides that the department may require that a
5 2 dealer claiming a tax credit as provided in Code section
5 3 422.11B be certified to claim the tax credit, maintain records
5 4 that the dealer is eligible for the tax credit, or
5 5 periodically report to the department information regarding
5 6 the sale of gasoline including designated gasoline. A person
5 7 who falsifies information is guilty of a fraudulent practice
5 8 as provided in Code section 714.8.
5 9 The bill applies to tax years beginning on or after January
5 10 1, 2002.
5 11 LSB 2151YC 79
5 12 da/cf/24.1
Text: HSB00120 Text: HSB00122 Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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