1. As used in this section, unless the context otherwise requires:
a. "Ethanol blended gasoline" means the same as defined in section 452A.2.
b. "Gasoline" means gasoline that meets the specifications required by the department of agriculture and land stewardship pursuant to section 214A.2 that is dispensed through a metered pump.
c. "Metered pump" means a motor vehicle fuel pump licensed by the department of agriculture and land stewardship pursuant to chapter 214.
d. "Retail dealer" means a retail dealer as defined in section 214A.1 who operates a metered pump at a service station.
e. "Sell" means to sell on a retail basis.
f. "Service station" means each geographic location in this state where a retail dealer sells and dispenses gasoline on a retail basis.
g. "Tax credit" means the designated ethanol blended gasoline tax credit as provided in this section.
2. The taxes imposed under this division, less the credits allowed under sections 422.12 and 422.12B, shall be reduced by an ethanol blended gasoline tax credit for each tax year that the taxpayer is eligible to claim the tax credit under this section. In order to be eligible, all of the following must apply:
a. The taxpayer is a retail dealer.
b. The taxpayer operates at least one service station at which more than sixty percent of the total gallons of gasoline sold and dispensed through one or more metered pumps by the taxpayer in the tax year is ethanol blended gasoline.
c. The taxpayer complies with requirements of the department required to administer this section.
3. The tax credit shall be calculated separately for each service station site operated by the taxpayer. The amount of the tax credit for each eligible service station is two and one-half cents multiplied by the total number of gallons of ethanol blended gasoline sold and dispensed through all metered pumps located at that service station during the tax year in excess of sixty percent of all gasoline sold and dispensed through metered pumps at that service station during the tax year.
4. Any credit in excess of the taxpayer's tax liability shall be refunded. In lieu of claiming a refund, the taxpayer may elect to have the overpayment shown on the taxpayer's final, completed return credited to the tax liability for the following tax year.
5. An individual may claim the tax credit allowed a partnership, limited liability company, S corporation, estate, or trust electing to have the income taxed directly to the individual. The amount claimed by the individual shall be based upon the pro rata share of the individual's earnings of a partnership, limited liability company, S corporation, estate, or trust.
2001 Acts, ch 123, §2, 6
Referred to in § 422.5, 422.16, 422.33
Ethanol blended gasoline tax credit applies to tax years beginning on or after January 1, 2002; implementation; 2001 Acts, ch 123, § 6
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