House Study Bill 309 



                                       HOUSE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            WAYS AND MEANS BILL BY
                                            CHAIRPERSON SHOMSHOR)


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act providing a biodiesel blended fuel tax credit for
  2    consumers, and providing effective and applicability dates.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2898HC 82
  5 da/es/88

PAG LIN



  1  1    Section 1.  NEW SECTION.  422.11T  BIODIESEL BLENDED FUEL
  1  2 TAX CREDIT FOR CONSUMERS.
  1  3    1.  As used in this section, unless the context otherwise
  1  4 requires:
  1  5    a.  "Biodiesel blended fuel" and "retail dealer" mean the
  1  6 same as defined in section 214A.1.
  1  7    b.  "Purchase" means to purchase on a retail basis.
  1  8    c.  "Tax credit" means a biodiesel blended fuel tax credit
  1  9 for consumers as provided in this section.
  1 10    2.  The taxes imposed under this division, less the credits
  1 11 allowed under sections 422.12 and 422.12B, shall be reduced by
  1 12 the amount of the biodiesel blended fuel tax credit for
  1 13 consumers for each tax year that the taxpayer is eligible to
  1 14 claim a tax credit under this subsection.
  1 15    a.  In order to be eligible, all of the following must
  1 16 apply:
  1 17    (1)  The taxpayer is a consumer who purchases biodiesel
  1 18 blended fuel from a retail dealer in the tax year in which the
  1 19 tax credit is claimed.
  1 20    (2)  The consumer does not resell the biodiesel blended
  1 21 fuel.
  1 22    (3)  The consumer complies with requirements of the
  1 23 department established to administer this section.
  1 24    b.  The tax credit shall apply to biodiesel blended fuel
  1 25 formulated with a minimum percentage of two percent by volume
  1 26 of biodiesel, if the formulation meets the standards provided
  1 27 in section 214A.2.
  1 28    3.  The amount of the tax credit is seven cents multiplied
  1 29 by the total number of gallons of biodiesel blended fuel
  1 30 purchased by the consumer during the consumer's tax year.
  1 31    4.  Any credit in excess of the consumer's tax liability
  1 32 shall be refunded.  In lieu of claiming a refund, the consumer
  1 33 may elect to have the overpayment shown on the consumer's
  1 34 final, completed return credited to the tax liability for the
  1 35 following tax year.
  2  1    5.  An individual may claim the tax credit allowed a
  2  2 partnership, limited liability company, S corporation, estate,
  2  3 or trust electing to have the income taxed directly to the
  2  4 individual.  The amount claimed by the individual shall be
  2  5 based upon the pro rata share of the individual's earnings of
  2  6 the partnership, limited liability company, S corporation,
  2  7 estate, or trust.
  2  8    Sec. 2.  Section 422.33, Code 2007, is amended by adding
  2  9 the following new subsection:
  2 10    NEW SUBSECTION.  11D.  The taxes imposed under this
  2 11 division shall be reduced by a biodiesel blended fuel tax
  2 12 credit for consumers for each tax year that the taxpayer is
  2 13 eligible to claim the tax credit under this subsection.
  2 14    a.  The taxpayer may claim the biodiesel blended fuel tax
  2 15 for consumers credit according to the same requirements, for
  2 16 the same amount, and calculated in the same manner, as
  2 17 provided for the biodiesel blended fuel tax credit for
  2 18 consumers pursuant to section 422.11T.
  2 19    b.  Any biodiesel blended fuel tax credit for consumers
  2 20 which is in excess of the taxpayer's tax liability shall be
  2 21 refunded or may be shown on the taxpayer's final, completed
  2 22 return credited to the tax liability for the following tax
  2 23 year in the same manner as provided in section 422.11T.
  2 24    Sec. 3.  EFFECTIVE AND APPLICABILITY DATES.  This Act takes
  2 25 effect January 1, 2008, and applies to tax years beginning on
  2 26 or after that date.
  2 27                           EXPLANATION
  2 28    This bill provides a refundabale income tax credit which
  2 29 may be claimed by consumers of biodiesel blended fuel,
  2 30 including for individual and corporate tax filers.  The amount
  2 31 of the tax credit is seven cents multiplied by the total
  2 32 number of gallons purchased during the consumer's tax year.
  2 33 The bill takes effect January 1, 2008, and applies to tax
  2 34 years beginning on or after that date.
  2 35 LSB 2898HC 82
  3  1 da:rj/es/88