HF 2785 (LSB 6080HV (1) 91)

HOUSE FILE 2785

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HSB 688)

A BILL FOR

An Act extending the biodiesel blended fuel tax credit.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 422.11P, subsection 8, Code 2026, is amended to read as follows:
   8.  This section is repealed January 1, 2028 2033.
    Sec. 2.  Section 422.33, subsection 11C, paragraph c, Code 2026, is amended to read as follows:
   c.  This subsection is repealed January 1, 2028 2033.
    Sec. 3.  2011 Iowa Acts, chapter 113, section 31, as amended by 2016 Iowa Acts, chapter 1106, section 10, and 2022 Iowa Acts, chapter 1067, section 52, is amended to read as follows:
   SEC. 31.  TAX CREDIT AVAILABILITY.  For a retail dealer who may claim a biodiesel blended fuel promotion tax credit under section 422.11P or 422.33, subsection 11C, as amended in this Act and amended in subsequent Acts, in calendar year 2027 2032, and whose tax year ends prior to December 31, 2027 2032, the retail dealer may continue to claim the tax credit in the retail dealer’s following tax year. In that case, the tax credit shall be calculated in the same manner as provided in section 422.11P or 422.33, subsection 11C, as amended in this Act and amended in subsequent Acts, for the remaining period beginning on the first day of the retail dealer’s new tax year until December 31, 2027 2032. For that remaining period, the tax credit shall be calculated in the same manner as a retail dealer whose tax year began on the previous January 1 and who is calculating the tax credit on December 31, 2027 2032.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill extends the repeal of the biodiesel blended fuel tax credit for retail dealers from January 1, 2028, to January 1, 2033, for purposes of the individual and corporate income taxes.
   The bill amends the Iowa Acts to ensure the availability of the biodiesel blended fuel tax credit for an entire tax year for those retail dealers whose tax year does not align with the repeal date of the tax credit.