House File 692 H-1708 Amend House File 692 as follows: 1 1. By striking everything after the enacting clause 2 and inserting: 3 < DIVISION I 4 RETAIL DEALERS —— MOTOR FUEL STANDARDS 5 Section 1. Section 214A.2, subsection 4, paragraph 6 b, Code 2011, is amended by adding the following new 7 subparagraph: 8 NEW SUBPARAGRAPH . (4) Biodiesel blended fuel 9 classified as B-6 or higher but not higher than B-20 10 must conform to A.S.T.M. international specification 11 D7467 or a successor A.S.T.M. international 12 specification as established by rules adopted by the 13 department. 14 DIVISION II 15 RETAIL DEALERS —— LIABILITY 16 Sec. 2. NEW SECTION . 214A.20 Retail dealers —— 17 limitation on liability. 18 1. A retail dealer is not liable for damages caused 19 by the use of incompatible motor fuel dispensed at the 20 retail dealer’s retail motor fuel site, if all of the 21 following applies: 22 a. The incompatible motor fuel complies with the 23 specifications for a type of motor fuel as provided in 24 section 214A.2. 25 b. The incompatible motor fuel is selected by a 26 person other than the retail dealer, including an 27 employee or agent of the retail dealer. 28 c. The incompatible motor fuel is dispensed from a 29 motor fuel pump that correctly labels the type of fuel 30 dispensed. 31 2. For purposes of this section, a motor fuel is 32 incompatible with a motor according to the manufacturer 33 of the motor. 34 DIVISION III 35 RETAIL DEALERS —— ETHANOL PROMOTION TAX CREDIT 36 Sec. 3. Section 422.11N, subsection 1, paragraph a, 37 Code 2011, is amended to read as follows: 38 a. “E-85 gasoline” , “ethanol” , “ethanol blended 39 gasoline” , “gasoline” , and “retail dealer” , and “retail 40 motor fuel site” mean the same as defined in section 41 214A.1 . 42 Sec. 4. Section 422.11N, subsection 3, paragraph a, 43 Code 2011, is amended to read as follows: 44 a. The taxpayer is a retail dealer who sells and 45 dispenses ethanol blended gasoline through a motor fuel 46 pump in located at the retail dealer’s retail motor 47 fuel site during the tax year in determination period 48 or parts of the determination periods for which the tax 49 credit is claimed as provided in this section . 50 -1- HF692.3029 (3) 84 da/rj 1/ 17 #1.

Sec. 5. Section 422.11N, Code 2011, is amended by 1 adding the following new subsection: 2 NEW SUBSECTION . 3A. a. When first claiming the 3 tax credit, the retail dealer shall elect to compute 4 and claim the tax credit on a company-wide basis or 5 site-by-site basis in the same manner as provided in 6 section 452A.33. 7 (1) In making a company-wide election, the retail 8 dealer must compute and claim the tax credit based 9 on calculations as provided in this section for all 10 retail motor fuel sites where the retail dealer sells 11 and dispenses motor fuel on a retail basis. The 12 retail dealer shall not claim the tax credit based on 13 a calculation which does not include all such retail 14 motor fuel sites. A retail dealer shall use the 15 company-wide election in order to calculate the retail 16 dealer’s biofuel threshold percentage as provided in 17 subsection 4, paragraph “b” . 18 (2) In making a site-by-site election, the retail 19 dealer must compute and claim the tax credit based 20 on calculations as provided in this section for each 21 retail motor fuel site where the retail dealer sells 22 and dispenses motor fuel on a retail basis. The 23 retail dealer shall not claim the tax credit based on 24 a calculation which includes two or more retail motor 25 fuel sites. Nothing in this subparagraph requires 26 the retail dealer to compute or claim a tax credit 27 for a particular retail motor fuel site. The retail 28 dealer shall not use the site-by-site election in order 29 to calculate the retail dealer’s biofuel threshold 30 percentage as provided in subsection 4, paragraph “b” . 31 b. Once the retail dealer makes an election as 32 provided in paragraph “a” , the retail dealer shall not 33 change the election without the written consent of the 34 department. 35 Sec. 6. Section 422.11N, subsection 4, paragraph d, 36 Code 2011, is amended by striking the paragraph. 37 Sec. 7. Section 422.11N, subsection 5, paragraph 38 a, subparagraph (1), Code 2011, is amended to read as 39 follows: 40 (1) For any tax year in which the retail dealer 41 has attained a biofuel threshold percentage for the 42 determination period, the tax credit rate is six and 43 one-half eight cents. 44 Sec. 8. Section 422.11N, subsection 5, paragraph a, 45 subparagraph (2), subparagraph divisions (a) and (b), 46 Code 2011, are amended to read as follows: 47 (a) If the retail dealer’s biofuel threshold 48 percentage disparity equals two percent or less, the 49 tax credit rate is four and one-half six cents. 50 -2- HF692.3029 (3) 84 da/rj 2/ 17

(b) If the retail dealer’s biofuel threshold 1 percentage disparity equals more than two percent but 2 not more than four percent, the tax credit rate is as 3 follows: 4 (i) For calendar year 2011, two and one-half cents. 5 (ii) For calendar year 2012 and for each subsequent 6 calendar year, four cents. 7 Sec. 9. Section 422.11N, subsection 6, Code 2011, 8 is amended to read as follows: 9 6. a. A retail dealer is eligible to claim an 10 ethanol promotion tax credit as provided in this 11 section even though the retail dealer claims an one or 12 all of the following related tax credits: 13 (1) The E-85 gasoline promotion tax credit pursuant 14 to section 422.11O . 15 (2) The E-15 plus gasoline promotion tax credit 16 pursuant to section 422.11Y. 17 b. The retail dealer may claim the ethanol 18 promotion tax credit and one or more of the related tax 19 credits as provided in paragraph “a” for the same tax 20 year and for the same ethanol gallonage. 21 Sec. 10. Section 452A.33, subsection 1, paragraph 22 b, Code 2011, is amended by striking the paragraph and 23 inserting in lieu thereof the following: 24 b. The report shall include information required in 25 paragraph “a” on a company-wide and site-by-site basis, 26 as required by the department. 27 (1) The information submitted on a company-wide 28 basis shall include the total motor fuel 29 gallonage, including for each classification and 30 subclassification, sold and dispensed by the retail 31 dealer as provided in paragraph “a” for all retail 32 motor fuel sites from which the retail dealer sells and 33 dispenses motor fuel. 34 (2) The information submitted on a site-by-site 35 basis shall include the total motor fuel 36 gallonage, including for each classification and 37 subclassification, sold and dispensed by the retail 38 dealer as provided in paragraph “a” separately for each 39 retail motor fuel site from which the retail dealer 40 sells and dispenses motor fuel. 41 Sec. 11. 2006 Iowa Acts, chapter 1142, section 49, 42 subsection 2, as amended by 2006 Iowa Acts, chapter 43 1175, section 17, is amended to read as follows: 44 2. For a retail dealer who may claim an ethanol 45 promotion tax credit under section 422.11N or 422.33, 46 subsection 11A, as enacted in this Act and amended 47 in subsequent Acts , in calendar year 2020 and whose 48 tax year ends prior to December 31, 2020, the retail 49 dealer may continue to claim the tax credit in the 50 -3- HF692.3029 (3) 84 da/rj 3/ 17

retail dealer’s following tax year. In that case, the 1 tax credit shall be calculated in the same manner as 2 provided in section 422.11N or 422.33, subsection 11A, 3 as enacted in this Act and amended in subsequent Acts , 4 for the remaining period beginning on the first day of 5 the retail dealer’s new tax year until December 31, 6 2020. For that remaining period, the tax credit shall 7 be calculated in the same manner as a retail dealer 8 whose tax year began on the previous January 1 and who 9 is calculating the tax credit on December 31, 2020. 10 Sec. 12. ADMINISTRATIVE RULES. The department 11 of revenue may adopt emergency rules under section 12 17A.4, subsection 3, and section 17A.5, subsection 13 2, paragraph “b”, to implement the provisions of 14 this division of this Act, and the rules shall be 15 effective immediately upon filing unless a later date 16 is specified in the rules. Any rules adopted in 17 accordance with this section shall also be published 18 as a notice of intended action as provided in section 19 17A.4. 20 Sec. 13. EFFECTIVE DATE. This division of this 21 Act, and the application of section 422.33, subsection 22 11A, due to this division of this Act, take effect upon 23 enactment. 24 Sec. 14. RETROACTIVE APPLICABILITY. This division 25 of this Act applies retroactively to January 1, 2011, 26 including section 422.11N, as amended in this division 27 of this Act, and the application of section 422.33, 28 subsection 11A, due to this division of this Act, to 29 tax years beginning on and after January 1, 2011. 30 DIVISION IV 31 E-85 GASOLINE PROMOTION TAX CREDIT 32 Sec. 15. Section 422.11O, subsection 2, Code 2011, 33 is amended to read as follows: 34 2. The taxes imposed under this division , less the 35 credits allowed under section 422.12 , shall be reduced 36 by an E-85 gasoline promotion tax credit for each tax 37 year that the taxpayer is eligible to claim the tax 38 credit under this subsection . 39 a. In order to be eligible, all of the following 40 must apply: 41 a. (1) The taxpayer is a retail dealer who sells 42 and dispenses E-85 gasoline through a motor fuel pump 43 in located at the retail dealer’s retail motor fuel 44 site during the tax calendar year in or parts of the 45 calendar year for which the tax credit is claimed as 46 provided in this section . 47 b. (2) The retail dealer complies with 48 requirements of the department to administer this 49 section . 50 -4- HF692.3029 (3) 84 da/rj 4/ 17

b. The tax credit shall apply to E-85 gasoline that 1 meets the standards provided in section 214A.2. 2 Sec. 16. Section 422.11O, subsection 3, Code 2011, 3 is amended by striking the subsection and inserting in 4 lieu thereof the following: 5 3. For a retail dealer whose tax year is on a 6 calendar year basis, the retail dealer shall calculate 7 the amount of the tax credit by multiplying a 8 designated rate of sixteen cents by the retail dealer’s 9 total E-85 gasoline gallonage as provided in sections 10 452A.31 and 452A.32. 11 Sec. 17. Section 422.11O, subsection 5, Code 2011, 12 is amended to read as follows: 13 5. a. A retail dealer is eligible to claim an 14 E-85 gasoline promotion tax credit as provided in this 15 section even though the retail dealer claims an one or 16 all of the following related tax credits: 17 (1) The ethanol promotion tax credit pursuant to 18 section 422.11N for the same tax year for the same 19 ethanol gallonage . 20 (2) The E-15 plus gasoline tax credit pursuant to 21 section 422.11Y. 22 b. (1) The retail dealer may claim the E-85 23 gasoline promotion tax credit and one or more of the 24 related tax credits as provided in paragraph “a” for 25 the same tax year. 26 (2) The retail dealer may claim the ethanol 27 promotion tax credit as provided in paragraph “a” for 28 the same ethanol gallonage used to calculate and claim 29 the E-85 gasoline promotion tax credit. 30 Sec. 18. Section 422.11O, subsection 8, Code 2011, 31 is amended to read as follows: 32 8. This section is repealed on January 1, 2021 33 2018 . 34 Sec. 19. Section 422.33, subsection 11B, paragraph 35 c, Code 2011, is amended to read as follows: 36 c. This subsection is repealed on January 1, 2021 37 2018 . 38 Sec. 20. 2006 Iowa Acts, chapter 1142, section 49, 39 subsection 3, is amended to read as follows: 40 3. For a retail dealer who may claim an E-85 41 gasoline promotion tax credit under section 422.11O 42 or 422.33, subsection 11B, as enacted in this Act and 43 amended in subsequent Acts , in calendar year 2020 2017 44 and whose tax year ends prior to December 31, 2020 45 2017 , the retail dealer may continue to claim the tax 46 credit in the retail dealer’s following tax year. In 47 that case, the tax credit shall be calculated in the 48 same manner as provided in section 422.11O or 422.33, 49 subsection 11B, as enacted in this Act and amended in 50 -5- HF692.3029 (3) 84 da/rj 5/ 17

subsequent Acts , for the remaining period beginning on 1 the first day of the retail dealer’s new tax year until 2 December 31, 2020 2017 . For that remaining period, the 3 tax credit shall be calculated in the same manner as 4 a retail dealer whose tax year began on the previous 5 January 1 and who is calculating the tax credit on 6 December 31, 2020 2017 . 7 Sec. 21. ADMINISTRATIVE RULES. The department of 8 revenue may adopt rules under chapter 17A prior to the 9 effectiveness and applicability of section 422.11O, 10 and section 422.33, subsection 11B, as amended in this 11 division of this Act, due to this division of this Act. 12 The department’s rules shall not take effect earlier 13 than January 1, 2012. 14 Sec. 22. EFFECTIVE DATES. 15 1. Except as provided in subsection 2, this 16 division of this Act takes effect on July 1, 2011. 17 2. a. The section of this division of this Act 18 authorizing the department of revenue to adopt rules 19 takes effect upon enactment. 20 b. Section 422.11O, as amended in this division 21 of this Act, and section 422.33, subsection 11B, as 22 amended in this division of this Act, take effect on 23 January 1, 2012. 24 Sec. 23. APPLICABILITY. Section 422.11O, as 25 amended in this division of this Act, and section 26 422.33, subsection 11B, as amended in this division of 27 this Act and applied due to this division of this Act, 28 apply to tax years beginning on and after January 1, 29 2012. 30 DIVISION V 31 RETAIL DEALERS —— BIODIESEL BLENDED FUEL TAX CREDIT 32 Sec. 24. Section 422.11P, Code 2011, is amended by 33 adding the following new subsection: 34 NEW SUBSECTION . 1A. For purposes of this section, 35 biodiesel blended fuel is classified in the same manner 36 as provided in section 214A.2. 37 Sec. 25. Section 422.11P, subsection 2, Code 2011, 38 is amended to read as follows: 39 2. The taxes imposed under this division , less the 40 credits allowed under section 422.12 , shall be reduced 41 by the amount of the a biodiesel blended fuel tax 42 credit for each tax year that the taxpayer is eligible 43 to claim a tax credit under this subsection . 44 a. In order to be eligible, all of the following 45 must apply: 46 (1) The taxpayer is a retail dealer who sells and 47 dispenses qualifying biodiesel blended fuel through a 48 motor fuel pump located at a the retail dealer’s retail 49 motor fuel site operated by the retail dealer in during 50 -6- HF692.3029 (3) 84 da/rj 6/ 17

the tax calendar year in or parts of the calendar years 1 for which the tax credit is claimed as provided in this 2 section . 3 (2) Of the total gallons of diesel fuel that the 4 retail dealer sells and dispenses through all motor 5 fuel pumps located at a motor fuel site operated by 6 the retail dealer during the retail dealer’s tax year, 7 fifty percent or more is biodiesel blended fuel which 8 meets the requirements of this section . 9 (3) (2) The retail dealer complies with 10 requirements of the department established to 11 administer this section . 12 b. The tax credit shall apply to biodiesel blended 13 fuel formulated with a minimum percentage of two 14 percent by volume of biodiesel, if the formulation 15 classified as provided in this section, if the 16 classification meets the standards provided in section 17 214A.2 . 18 Sec. 26. Section 422.11P, subsection 3, Code 2011, 19 is amended by striking the subsection and inserting in 20 lieu thereof the following: 21 3. For a retail dealer whose tax year is on a 22 calendar year basis, the retail dealer shall calculate 23 the amount of the tax credit by multiplying a 24 designated rate by the retail dealer’s total biodiesel 25 blended fuel gallonage as provided in section 452A.31 26 which qualifies under this subsection. 27 a. In calendar year 2012, in order to qualify for 28 the tax credit, the biodiesel blended fuel must be 29 classified as B-2 or higher. 30 (1) For biodiesel blended fuel classified as B-2 or 31 higher but not as high as B-5, the designated rate is 32 two cents. 33 (2) For biodiesel blended fuel classified as B-5 or 34 higher, the designated rate is four and one-half cents. 35 b. In calendar year 2013 and for each subsequent 36 calendar year, in order to qualify for the tax credit, 37 the biodiesel blended fuel must be classified as B-5 38 or higher. The designated rate for the qualifying 39 biodiesel blended fuel is four and one-half cents. 40 Sec. 27. Section 422.11P, Code 2011, is amended by 41 adding the following new subsection: 42 NEW SUBSECTION . 3A. For a retail dealer whose tax 43 year is not on a calendar year basis, the retail dealer 44 shall calculate the tax credit as follows: 45 a. If a retail dealer has not claimed a tax credit 46 in the retail dealer’s previous tax year, the retail 47 dealer may claim the tax credit in the retail dealer’s 48 current tax year for that period beginning on January 49 1 of the retail dealer’s previous tax year to the last 50 -7- HF692.3029 (3) 84 da/rj 7/ 17

day of the retail dealer’s previous tax year. For 1 that period the retail dealer shall calculate the 2 tax credit in the same manner as a retail dealer who 3 will calculate the tax credit on December 31 of that 4 calendar year as provided in subsection 3. 5 b. (1) For the period beginning on the first day 6 of the retail dealer’s tax year until December 31, 7 the retail dealer shall calculate the tax credit in 8 the same manner as a retail dealer who calculates the 9 tax credit on that same December 31 as provided in 10 subsection 3. 11 (2) For the period beginning on January 1 to the 12 end of the retail dealer’s tax year, the retail dealer 13 shall calculate the tax credit in the same manner as a 14 retail dealer who will calculate the tax credit on the 15 following December 31 as provided in subsection 3. 16 Sec. 28. Section 422.11P, subsection 6, Code 2011, 17 is amended to read as follows: 18 6. This section is repealed January 1, 2012 2018 . 19 Sec. 29. Section 422.33, subsection 11C, paragraphs 20 c and d, Code 2011, are amended to read as follows: 21 c. The tax credit shall be calculated separately 22 for each retail motor fuel site operated by the 23 taxpayer in the same manner as provided in section 24 422.11P . 25 d. c. This subsection is repealed on January 1, 26 2012 2018 . 27 Sec. 30. TAX CREDIT AVAILABILITY —— CLAIMS FOR THE 28 2011 CALENDAR YEAR. Nothing in this Act affects a 29 retail dealer’s claiming of a biodiesel blended fuel 30 tax credit as provided in 2006 Iowa Acts, chapter 1142, 31 section 49, subsection 5. 32 Sec. 31. TAX CREDIT AVAILABILITY. For a retail 33 dealer who may claim a biodiesel blended fuel promotion 34 tax credit under section 422.11P or 422.33, subsection 35 11C, as amended in this Act and amended in subsequent 36 Acts, in calendar year 2017, and whose tax year ends 37 prior to December 31, 2017, the retail dealer may 38 continue to claim the tax credit in the retail dealer’s 39 following tax year. In that case, the tax credit 40 shall be calculated in the same manner as provided in 41 section 422.11P or 422.33, subsection 11C, as amended 42 in this Act and amended in subsequent Acts, for the 43 remaining period beginning on the first day of the 44 retail dealer’s new tax year until December 31, 2017. 45 For that remaining period, the tax credit shall be 46 calculated in the same manner as a retail dealer whose 47 tax year began on the previous January 1 and who is 48 calculating the tax credit on December 31, 2017. 49 Sec. 32. ADMINISTRATIVE RULES. The department of 50 -8- HF692.3029 (3) 84 da/rj 8/ 17

revenue may adopt rules under chapter 17A prior to the 1 effectiveness and applicability of section 422.11P, 2 and section 422.33, subsection 11C, as amended in this 3 division of this Act, due to this division of this Act. 4 The department’s rules shall not take effect earlier 5 than January 1, 2012. 6 Sec. 33. EFFECTIVE DATES. 7 1. Except as provided in subsection 2, this 8 division of this Act takes effect July 1, 2011. 9 2. a. The section of this division of this 10 Act authorizing the department of revenue to adopt 11 administrative rules takes effect upon enactment. 12 b. The section of this division of this Act which 13 provides for tax credit availability for the 2011 14 calendar year under 2006 Iowa Acts, chapter 1142, 15 section 49, subsection 5, being deemed of immediate 16 importance, takes effect upon enactment. 17 c. Section 422.11P, as amended in this division 18 of this Act, and section 422.33, subsection 11C, as 19 amended in this division of this Act, take effect on 20 January 1, 2012. 21 Sec. 34. APPLICABILITY. Section 422.11P, as 22 amended in this division of this Act, and section 23 422.33, subsection 11C, as amended in this division of 24 this Act and applied due to this division of this Act, 25 apply to tax years beginning on and after January 1, 26 2012. 27 DIVISION VI 28 RETAIL DEALERS —— E-15 PLUS GASOLINE TAX CREDIT 29 Sec. 35. NEW SECTION . 422.11Y E-15 plus gasoline 30 promotion tax credit. 31 1. As used in this section, unless the context 32 otherwise requires: 33 a. “E-85 gasoline” , “ethanol” , “gasoline” , “retail 34 dealer” , and “retail motor fuel site” mean the same as 35 defined in section 214A.1. 36 b. “Motor fuel pump” means the same as defined in 37 section 214.1. 38 c. “Sell” means to sell on a retail basis. 39 d. “Tax credit” means the E-15 plus gasoline tax 40 credit as provided in this section. 41 2. For purposes of this section, ethanol blended 42 gasoline is classified in the same manner as provided 43 in section 214A.2. 44 3. The taxes imposed under this division, less the 45 credits allowed under section 422.12, shall be reduced 46 by the amount of the E-15 plus gasoline tax credit for 47 each tax year that the taxpayer is eligible to claim a 48 tax credit under this subsection. 49 a. In order to be eligible, all of the following 50 -9- HF692.3029 (3) 84 da/rj 9/ 17

must apply: 1 (1) The taxpayer is a retail dealer who sells and 2 dispenses qualifying ethanol blended gasoline through a 3 motor fuel pump located at the retail dealer’s retail 4 motor fuel site during the calendar year or parts of 5 the calendar years for which the tax credit is claimed 6 as provided in this section. 7 (2) The retail dealer complies with requirements of 8 the department established to administer this section. 9 b. The tax credit shall apply to ethanol blended 10 gasoline classified as provided in this section, if the 11 classification meets the standards provided in section 12 214A.2. 13 4. For a retail dealer whose tax year is on 14 a calendar year basis, the retail dealer shall 15 calculate the amount of the tax credit by multiplying 16 a designated rate by the retail dealer’s total ethanol 17 blended gasoline gallonage as provided in section 18 452A.31 which qualifies under this subsection. 19 a. In order to qualify for the tax credit, the 20 ethanol blended gasoline must be classified as E-15 or 21 higher but not classified as E-85. 22 b. The designated rate of the tax credit is as 23 follows: 24 (1) For calendar year 2012, calendar year 2013, and 25 calendar year 2014, three cents. 26 (2) For calendar year 2015, calendar year 2016, and 27 calendar year 2017, two cents. 28 5. For a retail dealer whose tax year is not on a 29 calendar year basis, the retail dealer shall calculate 30 the tax credit as follows: 31 a. If a retail dealer has not claimed a tax credit 32 in the retail dealer’s previous tax year, the retail 33 dealer may claim the tax credit in the retail dealer’s 34 current tax year for that period beginning on January 35 1 of the retail dealer’s previous tax year to the last 36 day of the retail dealer’s previous tax year. For 37 that period the retail dealer shall calculate the 38 tax credit in the same manner as a retail dealer who 39 will calculate the tax credit on December 31 of that 40 calendar year as provided in subsection 4. 41 b. (1) For the period beginning on the first day 42 of the retail dealer’s tax year until December 31, 43 the retail dealer shall calculate the tax credit in 44 the same manner as a retail dealer who calculates the 45 tax credit on that same December 31 as provided in 46 subsection 4. 47 (2) For the period beginning on January 1 to the 48 end of the retail dealer’s tax year, the retail dealer 49 shall calculate the tax credit in the same manner as a 50 -10- HF692.3029 (3) 84 da/rj 10/ 17

retail dealer who will calculate the tax credit on the 1 following December 31 as provided in subsection 4. 2 6. a. A retail dealer is eligible to claim an E-15 3 plus gasoline promotion tax credit as provided in this 4 section even though the retail dealer claims one or all 5 of the following related tax credits: 6 (1) The ethanol promotion tax credit pursuant to 7 section 422.11N. 8 (2) The E-85 gasoline promotion tax credit pursuant 9 to section 422.11O. 10 b. (1) The retail dealer may claim the E-15 plus 11 gasoline promotion tax credit and one or more of the 12 related tax credits as provided in paragraph “a” for 13 the same tax year. 14 (2) The retail dealer may claim the ethanol 15 promotion tax credit as provided in paragraph “a” for 16 the same ethanol gallonage used to calculate and claim 17 the E-15 plus gasoline tax credit. 18 7. Any credit in excess of the retail dealer’s 19 tax liability shall be refunded. In lieu of claiming 20 a refund, the retail dealer may elect to have the 21 overpayment shown on the retail dealer’s final, 22 completed return credited to the tax liability for the 23 following tax year. 24 8. An individual may claim the tax credit allowed a 25 partnership, limited liability company, S corporation, 26 estate, or trust electing to have the income taxed 27 directly to the individual. The amount claimed by the 28 individual shall be based upon the pro rata share of 29 the individual’s earnings of a partnership, limited 30 liability company, S corporation, estate, or trust. 31 9. This section is repealed on January 1, 2018. 32 Sec. 36. Section 422.33, Code 2011, is amended by 33 adding the following new subsection: 34 NEW SUBSECTION . 11D. The taxes imposed under this 35 division shall be reduced by an E-15 plus gasoline 36 promotion tax credit for each tax year that the 37 taxpayer is eligible to claim the tax credit under this 38 subsection. 39 a. The taxpayer shall claim the tax credit in 40 the same manner as provided in section 422.11Y. The 41 taxpayer may claim the tax credit according to the same 42 requirements, for the same amount, and calculated in 43 the same manner, as provided for the E-15 plus gasoline 44 promotion tax credit pursuant to section 422.11Y. 45 b. Any E-15 plus gasoline promotion tax credit 46 which is in excess of the taxpayer’s tax liability 47 shall be refunded or may be shown on the taxpayer’s 48 final, completed return credited to the tax liability 49 for the following tax year in the same manner as 50 -11- HF692.3029 (3) 84 da/rj 11/ 17

provided in section 422.11Y. 1 c. This subsection is repealed on January 1, 2018. 2 Sec. 37. TAX CREDIT AVAILABILITY. For a retail 3 dealer who may claim an E-15 plus gasoline promotion 4 tax credit under section 422.11Y or 422.33, subsection 5 11D, as enacted in this Act and amended in subsequent 6 Acts, in calendar year 2017, and whose tax year ends 7 prior to December 31, 2017, the retail dealer may 8 continue to claim the tax credit in the retail dealer’s 9 following tax year. In that case, the tax credit 10 shall be calculated in the same manner as provided in 11 section 422.11Y or 422.33, subsection 11D, as enacted 12 in this Act and amended in subsequent Acts, for the 13 remaining period beginning on the first day of the 14 retail dealer’s new tax year until December 31, 2017. 15 For that remaining period, the tax credit shall be 16 calculated in the same manner as a retail dealer whose 17 tax year began on the previous January 1 and who is 18 calculating the tax credit on December 31, 2017. 19 Sec. 38. ADMINISTRATIVE RULES. The department 20 of revenue may adopt emergency rules under section 21 17A.4, subsection 3, and section 17A.5, subsection 2, 22 paragraph “b”, to implement the provisions of this 23 division of this Act. Any rules adopted in accordance 24 with this section shall also be published as a notice 25 of intended action as provided in section 17A.4. The 26 department’s rules shall not take effect earlier than 27 July 1, 2011. 28 Sec. 39. EFFECTIVE DATES. 29 1. Except as provided in subsection 2, this 30 division of this Act takes effect on July 1, 2011. 31 2. The section of this division of this Act 32 authorizing the department of revenue to adopt rules 33 takes effect upon enactment. 34 Sec. 40. APPLICABILITY. 35 1. Except as provided in subsection 2, section 36 422.11Y, as enacted in this division of this Act, and 37 section 422.33, subsection 11D, as enacted in this 38 division of this Act and applied due to this division 39 of this Act, apply to tax years beginning on and after 40 January 1, 2012. 41 2. Section 422.11Y, as enacted in this division 42 of this Act, and section 422.33, subsection 11D, as 43 enacted in this division of this Act and applied due 44 to this division of this Act, apply to that part of a 45 retail dealer’s tax year or tax years occurring during 46 that portion of the calendar year beginning on and 47 after July 1, 2011, and ending on December 31, 2011. 48 In that case, the retail dealer shall calculate the 49 E-15 plus gasoline promotion tax in the same manner as 50 -12- HF692.3029 (3) 84 da/rj 12/ 17

a retail dealer calculating the tax credit on January 1 1, 2012. 2 DIVISION VII 3 RENEWABLE FUEL INFRASTRUCTURE —— APPROPRIATION —— 4 TRANSFER OF AUTHORITY FROM DEPARTMENT OF ECONOMIC 5 DEVELOPMENT TO DEPARTMENT OF AGRICULTURE AND LAND 6 STEWARDSHIP 7 Sec. 41. Section 15.104, subsection 8, paragraph j, 8 Code 2011, is amended by striking the paragraph. 9 Sec. 42. Section 15G.201, subsection 2, Code 2011, 10 is amended to read as follows: 11 2. “Department” means the Iowa department of 12 economic development created in section 15.105 13 department of agriculture and land stewardship . 14 Sec. 43. Section 15G.202, subsection 2, paragraph 15 c, subparagraph (4), Code 2011, is amended to read as 16 follows: 17 (4) The Iowa motor truck association biodiesel 18 board . 19 Sec. 44. Section 15G.205, subsection 4, paragraph 20 c, Code 2011, is amended to read as follows: 21 c. Notwithstanding section 8.33 , unencumbered and 22 unobligated moneys remaining in the infrastructure fund 23 at the close of each fiscal year shall not revert but 24 shall remain available in the infrastructure fund for 25 expenditure for the same purposes until the end of the 26 fiscal year that begins July 1, 2011, at which time the 27 unencumbered and unobligated moneys remaining shall 28 revert to the funds from which appropriated . 29 Sec. 45. Section 159.20, subsection 1, paragraph j, 30 Code 2011, is amended to read as follows: 31 j. Provide for the promotion and expansion of 32 renewable fuels and coproducts, by doing all of the 33 following: 34 j. (1) Assist the office of renewable fuels and 35 coproducts in administering the provisions of chapter 36 159A , subchapter I . 37 (2) Assist the renewable fuel infrastructure board, 38 provide for the administration of the renewable fuel 39 infrastructure programs, and provide for the management 40 of the renewable fuel infrastructure fund, as provided 41 in chapter 159A, subchapter II. 42 Sec. 46. Section 159A.2, unnumbered paragraph 1, 43 Code 2011, is amended to read as follows: 44 As used in this chapter subchapter , unless the 45 context otherwise requires: 46 Sec. 47. Section 321.145, subsection 2, paragraph 47 a, Code 2011, is amended to read as follows: 48 a. Four Moneys shall be deposited into and credited 49 to the following funds: 50 -13- HF692.3029 (3) 84 da/rj 13/ 17

(1) First, three million two five hundred fifty 1 thousand dollars per quarter shall be deposited into 2 and credited to the Iowa comprehensive petroleum 3 underground storage tank fund created in section 4 455G.3 , and the moneys so deposited are a continuing 5 appropriation for expenditure under chapter 455G , and 6 moneys so appropriated shall not be used for other 7 purposes. 8 (2) Second, seven hundred fifty thousand dollars 9 per quarter shall be deposited into and credited to the 10 renewable fuel infrastructure fund created in section 11 15G.205, and the moneys so deposited are a continuing 12 appropriation for expenditure under chapter 15G, 13 subchapter II, and moneys so appropriated shall not be 14 used for other purposes. 15 Sec. 48. TRANSITIONAL PROVISIONS —— ADMINISTRATIVE 16 RULES. The rules adopted by the department of economic 17 development as codified in 261 IAC, chapters 311 18 through 314, shall continue in full force and effect 19 until amended, repealed, or supplemented by affirmative 20 action of the department of agriculture and land 21 stewardship. 22 Sec. 49. TRANSITIONAL PROVISIONS —— EMERGENCY 23 ADMINISTRATIVE RULEMAKING. The department of 24 agriculture and land stewardship may adopt emergency 25 rules under section 17A.4, subsection 3, and section 26 17A.5, subsection 2, paragraph “b”, to implement the 27 provisions of this division of this Act, and the rules 28 shall be effective July 1, 2011, unless a later date 29 is specified in the rules. Any rules adopted in 30 accordance with this section shall also be published 31 as a notice of intended action as provided in section 32 17A.4. 33 Sec. 50. TRANSITIONAL PROVISIONS —— ADMINISTRATIVE 34 HEARINGS OR COURT PROCEEDINGS. An administrative 35 hearing or court proceeding arising out of an 36 enforcement action under chapter 15G pending on 37 July 1, 2011, shall not be affected due to this 38 division of this Act. Any cause of action or statute 39 of limitations relating to an action taken by the 40 department of economic development shall not be 41 affected as a result of this division of this Act and 42 such cause or statute of limitation shall apply to the 43 department of agriculture and land stewardship. 44 Sec. 51. TRANSITIONAL PROVISIONS —— REPLACEMENT 45 ITEMS. A replacement item, including but not limited 46 to logos, stationery, or insignia, that is made due to 47 the effect of this division of this Act shall be done 48 as part of the normal replacement cycle for such item. 49 Sec. 52. TRANSITIONAL PROVISIONS —— TRANSFER OF 50 -14- HF692.3029 (3) 84 da/rj 14/ 17