HSB 237 (LSB 1653YC (7) 91)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON KAUFMANN)

A BILL FOR

An Act relating to fuel taxation by extending tax credits for E-85 and E-15 gasoline, and biodiesel, and extending sales tax refunds for biodiesel production.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 422.11O, subsection 5, paragraph b, Code 2025, is amended to read as follows:
   b.  This subsection is repealed January 1, 2026 2031.
    Sec. 2.  Section 422.11O, subsection 8, Code 2025, is amended to read as follows:
   8.  This section is repealed January 1, 2028 2031.
    Sec. 3.  Section 422.11P, subsection 8, Code 2025, is amended to read as follows:
   8.  This section is repealed January 1, 2028 2031.
    Sec. 4.  Section 422.11Y, subsection 9, Code 2025, is amended to read as follows:
   9.  This section is repealed January 1, 2026 2031.
    Sec. 5.  Section 422.33, subsection 11B, paragraph c, Code 2025, is amended to read as follows:
   c.  This subsection is repealed January 1, 2028 2031.
    Sec. 6.  Section 422.33, subsection 11C, paragraph c, Code 2025, is amended to read as follows:
   c.  This subsection is repealed January 1, 2028 2031.
    Sec. 7.  Section 422.33, subsection 11D, paragraph c, Code 2025, is amended to read as follows:
   c.  This subsection is repealed January 1, 2026 2031.
    Sec. 8.  Section 423.4, subsection 9, paragraph e, Code 2025, is amended to read as follows:
   e.  This subsection is repealed January 1, 2028 2031.
    Sec. 9.  2006 Iowa Acts, chapter 1142, section 49, subsection 3, as amended by 2011 Iowa Acts, chapter 113, section 20, 2016 Iowa Acts, chapter 1106, section 6, and 2022 Iowa Acts, chapter 1067, section 47, is amended to read as follows:
   3.  For a retail dealer who may claim an E-85 gasoline promotion tax credit under section 422.11O or 422.33, subsection 11B, as enacted in this Act and amended in subsequent Acts, in calendar year 2027 2030 and whose tax year ends prior to December 31, 2027 2030, 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 422.11O or 422.33, subsection 11B, as enacted 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 2030. 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 2030.
    Sec. 10.  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 2030, and whose tax year ends prior to December 31, 2027 2030, 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 2030. 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 2030.
    Sec. 11.  2011 Iowa Acts, chapter 113, section 37, as amended by 2016 Iowa Acts, chapter 1106, section 3, and 2022 Iowa Acts, chapter 1067, section 57, is amended to read as follows:
   SEC. 37.  TAX CREDIT AVAILABILITY.  For a retail dealer who may claim an E-15 plus gasoline promotion tax credit under section 422.11Y or 422.33, subsection 11D, as enacted in this Act and amended in subsequent Acts, in calendar year 2025 2030, and whose tax year ends prior to December 31, 2025 2030, 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 422.11Y or 422.33, subsection 11D, as enacted 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, 2025 2030. 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, 2025 2030.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to fuel taxation by extending tax credits for E-85 and E-15 gasoline, and biodiesel, and extending sales tax refunds for biodiesel production.
   The bill extends the eligibility of a retail dealer to claim the E-85 gasoline promotion tax credit from January 1, 2028, to December 31, 2030, for purposes of the individual income tax. The bill also extends the E-85 gasoline promotion tax credit from January 1, 2028, to December 31, 2030, for purposes of the corporate income tax. The bill extends the ability of a retail dealer to claim the E-85 promotion tax credit to December 31, 2030, even if the retail dealer claims an E-15 plus gasoline promotion tax credit during the same year.
   The bill extends the eligibility of a retail dealer to claim the E-15 plus gasoline promotion tax credit from January 1, 2026, to December 31, 2030, for purposes of the individual income tax. The bill extends the E-15 plus gasoline promotion tax credit from January 1, 2026, to December 31, 2030, for purposes of the corporate income tax.
   The bill extends the biodiesel blended fuel tax credit for retail dealers from January 1, 2028, to December 31, 2030, for purposes of the individual income tax. The bill also extends the tax credit for retail dealers from January 1, 2028, to December 31, 2030, for purposes of the corporate income tax.
   The bill amends the Iowa Acts to ensure the availability of the E-85 gasoline promotion tax credit, the E-15 plus gasoline promotion tax credit, and 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 applicable tax credit.
   The bill extends eligibility for sales tax refunds to producers of biodiesel from January 1, 2028, to January 1, 2030.