Amend  the Senate amendment, H-1454, to House File 640, as amended, passed, and reprinted by the House, as follows:
   1.  Page 7, by striking lines 33 through 46 and inserting: 
   <Sec. ___.  Section 312.2, subsection 9, paragraph a, Code 2013, is amended to read as follows:
   a.  From the excise tax on motor fuel and special fuel imposed under the tax rate of section 452A.3, except aviation gasoline and dyed special fuel, the amount of excise tax collected from one and three-fourths cents per gallon.
   Sec. ___.  Section 312.2, subsection 10, paragraph a, Code 2013, is amended to read as follows:
   a.  From the excise tax on motor fuel and special fuel imposed under the tax rate of section 452A.3, except aviation gasoline and dyed special fuel, the amount of excise tax collected from one-fourth cent per gallon.
   Sec. ___.  Section 312.2, Code 2013, is amended by adding the following new subsection:
   NEW SUBSECTION.  18.  a.  The treasurer of state, before making the allotments provided for in this section, shall credit monthly from the road use tax fund to the TIME-21 fund created in section 312A.2 the revenue accruing to the road use tax fund beginning July 1, 2015, from the excise tax on motor fuel and special fuel for motor vehicles and on dyed special fuel used for off-highway purposes in the amount equal to the revenues collected as follows:
   (1)  The amount of excise tax collected under section 452A.3, subsection 1, paragraph “c”, or section 452A.3, subsection 1A, from ten cents per gallon.
   (2)  The amount of excise tax collected under section 452A.3, subsection 3, paragraph “b”, subparagraph (2), from ten cents per gallon.
   (3)  The amount of excise tax collected under section 452A.3, subsection 3, paragraph “c”, from two cents per gallon.
   b.  This subsection is repealed June 30, 2028.
   Sec. ___.  Section 423.3, subsection 56, Code 2013, is amended to read as follows:
   56.  The sales price from the sale of motor fuel and special fuel consumed for highway use or in watercraft or aircraft where the fuel tax, except for the fuel tax on dyed special fuel, has been imposed and paid and no refund has been or will be allowed and the sales price from the sales of ethanol blended gasoline, as defined in section 214A.1.
   Sec. ___.  Section 452A.3, subsection 1, unnumbered paragraph 1, Code 2013, is amended to read as follows:

   Except as otherwise provided in this section and in this division, until June 30, 2013 2023, this subsection shall apply to the excise tax imposed on each gallon of motor fuel used for any purpose for the privilege of operating motor vehicles in this state.
   Sec. ___.  Section 452A.3, subsection 1, paragraph b, unnumbered paragraph 1, Code 2013, is amended to read as follows:

   The For the period beginning July 1, 2013, and ending June 30, 2015, the rate for the excise tax shall be as follows:
   Sec. ___.  Section 452A.3, subsection 1, Code 2013, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  For the period beginning July 1, 2015, and ending June 30, 2023, the rate for the excise tax shall be as follows:
   (1)  If the distribution percentage is not greater than fifty percent, the rate shall be twenty-nine cents for ethanol blended gasoline and thirty cents for motor fuel other than ethanol blended gasoline.
   (2)  If the distribution percentage is greater than fifty percent but not greater than fifty-five percent, the rate shall be twenty-nine cents for ethanol blended gasoline and thirty and one-tenth cents for motor fuel other than ethanol blended gasoline.
   (3)  If the distribution percentage is greater than fifty-five percent but not greater than sixty percent, the rate shall be twenty-nine cents for ethanol blended gasoline and thirty and three-tenths cents for motor fuel other than ethanol blended gasoline.
   (4)  If the distribution percentage is greater than sixty percent but not greater than sixty-five percent, the rate shall be twenty-nine cents for ethanol blended gasoline and thirty and five-tenths cents for motor fuel other than ethanol blended gasoline.
   (5)  If the distribution percentage is greater than sixty-five percent but not greater than seventy percent, the rate shall be twenty-nine cents for ethanol blended gasoline and thirty and seven-tenths cents for motor fuel other than ethanol blended gasoline.
   (6)  If the distribution percentage is greater than seventy percent but not greater than seventy-five percent, the rate shall be twenty-nine cents for ethanol blended gasoline and thirty-one cents for motor fuel other than ethanol blended gasoline.
   (7)  If the distribution percentage is greater than seventy-five percent but not greater than eighty percent, the rate shall be twenty-nine and three-tenths cents for ethanol blended gasoline and thirty and eight-tenths cents for motor fuel other than ethanol blended gasoline.
   (8)  If the distribution percentage is greater than eighty percent but not greater than eighty-five percent, the rate shall be twenty-nine and five-tenths cents for ethanol blended gasoline and thirty and seven-tenths cents for motor fuel other than ethanol blended gasoline.
   (9)  If the distribution percentage is greater than eighty-five percent but not greater than ninety percent, the rate shall be twenty-nine and seven-tenths cents for ethanol blended gasoline and thirty and four-tenths cents for motor fuel other than ethanol blended gasoline.
   (10)  If the distribution percentage is greater than ninety percent but not greater than ninety-five percent, the rate shall be twenty-nine and nine-tenths cents for ethanol blended gasoline and thirty and one-tenth cents for motor fuel other than ethanol blended gasoline.
   (11)  If the distribution percentage is greater than ninety-five percent, the rate shall be thirty cents for ethanol blended gasoline and thirty cents for motor fuel other than ethanol blended gasoline.
   Sec. ___.  Section 452A.3, subsection 1A, Code 2013, is amended to read as follows:
   1A.  Except as otherwise provided in this section and in this division, after June 30, 2013 2023, an excise tax of twenty thirty cents is imposed on each gallon of motor fuel used for any purpose for the privilege of operating motor vehicles in this state.
   Sec. ___.  Section 452A.3, subsection 3, Code 2013, is amended to read as follows:
   3.  a.  For the privilege of operating motor vehicles or aircraft in this state, there is imposed an excise tax on the use of special fuel in a motor vehicle or aircraft. The
   b.  (1)  Until June 30, 2015, the tax rate on special fuel for diesel engines of motor vehicles, other than biodiesel blended fuel classified as B-10 or higher or dyed special fuel, is twenty-two and one-half cents per gallon.
   (2)  Beginning July 1, 2015, the tax rate on special fuel for diesel engines of motor vehicles, other than biodiesel blended fuel classified as B-10 or higher or dyed special fuel, is thirty-two and one-half cents per gallon.
   (3)  The tax rate on biodiesel blended fuel classified as B-10 or higher for diesel engines of motor vehicles is twenty-two and one-half cents per gallon.
   (4)  The rate of tax on special fuel for aircraft is three cents per gallon.
   (5)  On all other special fuel, unless otherwise specified in this section, the per gallon rate is the same as the motor fuel tax.
   c.  Indelible dye meeting United States environmental protection agency and internal revenue service regulations must be added to fuel before or upon withdrawal at a terminal or refinery rack for that fuel to be exempt from the tax imposed under paragraph “b” and the dyed fuel may be used only for an exempt purpose off-highway purposes.  Beginning July 1, 2015, an excise tax at the rate of two cents per gallon is imposed on dyed special fuel used for off-highway purposes.
   Sec. ___.  Section 452A.3, subsection 5, Code 2013, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  The director of revenue shall administer the excise tax on dyed special fuel as nearly as possible in conjunction with the administration of the state sales and use tax law, except that portion of the law which implements the streamlined sales and use tax agreement. Section 422.25, subsection 4, sections 422.30, 422.67, and 422.68, section 422.69, subsection 1, sections 422.70, 422.71, 422.72, 422.74, and 422.75, section 423.14, subsection 1, and sections 423.23, 423.24, 423.25, 423.31 through 423.35, 423.37 through 423.42, and 423.47, consistent with the provisions of this chapter, apply with respect to the tax on dyed special fuel authorized under this section, in the same manner and with the same effect as if the excise taxes on dyed special fuel were retail sales taxes within the meaning of those statutes.
   Sec. ___.  Section 452A.8, subsection 1, paragraph b, Code 2013, is amended to read as follows:
   b.  For information purposes only, a supplier, restrictive supplier, or importer shall show the The number of invoiced gallons of dyed special fuel withdrawn from the terminal.
   Sec. ___.  APPLICABILITY —— INVENTORY TAX.  Notwithstanding section 452A.85, persons who have title to motor fuel, ethanol blended gasoline, undyed special fuel, compressed natural gas, or liquefied petroleum gas in storage and held for sale on the effective date of an increase in the rate of excise tax imposed on motor fuel, ethanol blended gasoline, or special fuel pursuant to this division of this Act shall not be subject to an inventory tax on the gallonage in storage as provided in section 452A.85 as a result of the tax increases provided in this division of this Act.>
   2.  Page 7, after line 49 by inserting: 

<DIVISION ___

INCOME TAX CREDITS
   Sec. ___.  NEW SECTION.  422.11C  Dyed special fuel tax credit.
   1.  The taxes imposed under this division, less the credits allowed under section 422.12, shall be reduced by a dyed special fuel tax credit equal to two cents per gallon of dyed special fuel used for off-highway purposes subject to the excise tax in section 452A.3 which was purchased by the taxpayer during the tax year.
   2.  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 the partnership, limited liability company, S corporation, estate, or trust.
   3.  Any credit in excess of the tax liability shall be refunded. In lieu of claiming a refund, a taxpayer may elect to have the overpayment shown on the taxpayer’s final, completed return credited to the tax liability for the following taxable year.
   Sec. ___.  NEW SECTION.  422.11E  Fuel tax neutrality tax credit.
   1.  For purposes of this section, unless the context otherwise requires:
   a.  “Hybrid motor vehicle” means a motor vehicle subject to registration under section 321.18, which operates on a combination of an electric propulsion system and an internal combustion propulsion system.
   b.  “Lease” or “leased” means the same as defined in section 321F.1.
   c.  “Motor vehicle” means a motor vehicle subject to registration under section 321.18, excluding a motor vehicle that operates solely on an electric propulsion system or a motor vehicle that operates on a combination of an electric propulsion system and an internal combustion propulsion system.
   d.  “Used primarily for business purposes” means to primarily use a motor vehicle or hybrid motor vehicle in such a way as to allow the taxpayer a deduction under section 162(a) of the Internal Revenue Code, but shall not include a vehicle primarily used for lease or rental to another person, or held primarily for sale to another person.
   e.  “Used primarily for personal purposes” means to primarily use a motor vehicle or hybrid motor vehicle for any purpose other than a business purpose, but shall not include a vehicle primarily used for lease or rental to another person, or held primarily for sale to another person.
   2.  The taxes imposed under this division, less the credits allowed under section 422.12, shall be reduced by a fuel tax neutrality tax credit equal to the following:
   a.  For a motor vehicle owned or leased by a taxpayer and used primarily for personal purposes, seventy-five dollars. However, for tax years beginning in the 2015 calendar year, the amount shall not exceed thirty-seven dollars.
   b.  For a hybrid motor vehicle owned or leased by a taxpayer and used primarily for personal purposes, forty dollars. However, for tax years beginning in the 2015 calendar year, the amount shall not exceed twenty dollars.
   c.  For a motor vehicle or hybrid motor vehicle owned or leased by a taxpayer and used primarily for business purposes, one of the following amounts:
   (1)  If the taxpayer has elected for federal tax purposes to use the standard mileage rate method for computation of deductible business expenses pursuant to the Internal Revenue Code, an amount equal to fifty-five hundredths of a cent per mile driven within Iowa during the tax year, rounded to the nearest dollar. However, the credit in this subparagraph shall not apply to miles driven before July 1, 2015.
   (2)  If the taxpayer has elected for federal tax purposes to deduct the actual costs of operating the motor vehicle or hybrid motor vehicle pursuant to the Internal Revenue Code, an amount equal to ten cents per gallon of motor fuel or undyed special fuel purchased within Iowa by the taxpayer during the tax year for use in the motor vehicle or hybrid motor vehicle, rounded to the nearest dollar. However, the credit in this subparagraph shall not apply to fuel purchased before July 1, 2015.
   3.  For purposes of the credit in subsection 2, if a motor vehicle or hybrid motor vehicle is jointly owned or leased by two or more taxpayers, the credit shall only be claimed by one taxpayer.
   4.  For purposes of the credits in subsection 2, paragraphs “a” and “b”, if the taxpayer is not the owner or lessee of the motor vehicle or hybrid motor vehicle for the entire tax year, the maximum amount of the credit shall be prorated and the amount of the credit for the taxpayer with respect to those paragraphs shall equal the maximum amount of credit for the tax year, divided by twelve, multiplied by the number of months in the tax year that the taxpayer owned or leased the motor vehicle or hybrid motor vehicle.
   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 the partnership, limited liability company, S corporation, estate, or trust.
   6.  Any credit in excess of the tax liability shall be refunded. In lieu of claiming a refund, a taxpayer may elect to have the overpayment shown on the taxpayer’s final, completed return credited to the tax liability for the following taxable year.
   Sec. ___.  Section 422.33, Code 2013, is amended by adding the following new subsections:
   NEW SUBSECTION.  22.  The taxes imposed under this division shall be reduced by a dyed special fuel tax credit in the same manner, for the same amount, and under the same conditions as provided in section 422.11C.
   NEW SUBSECTION.  23.  The taxes imposed under this division shall be reduced by a fuel tax neutrality tax credit in the same manner, for the same amount, and under the same conditions as provided in section 422.11E.
   Sec. ___.  EFFECTIVE DATE.  This division of this Act takes effect January 1, 2015.
   Sec. ___.  APPLICABILITY.  This division of this Act applies to tax years beginning on or after January 1, 2015.>
   3.  Page 8, after line 1 by inserting: 
   <___.  Title page, line 7, by striking <extending the period for determining the rates>
   ___.  Title page, by striking lines 8 and 9 and inserting <relating to excise taxes on motor fuel and certain special fuel, providing for the use of certain revenues resulting from the excise taxes, providing income tax credits, including>
   ___.  Title page, line 10, after <date> by inserting <and applicability>>
   4.  By renumbering as necessary.

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BYRNES of Mitchell

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BALTIMORE of Boone