HSB 318 (LSB 2522YC (4) 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-15 gasoline available against the individual and corporate income taxes.
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   b.  This subsection is repealed January 1, 2026 2028.
    Sec. 2.  Section 422.11Y, subsection 9, Code 2025, is amended to read as follows:
   9.  This section is repealed January 1, 2026 2028.
    Sec. 3.  Section 422.33, subsection 11D, paragraph c, Code 2025, is amended to read as follows:
   c.  This subsection is repealed January 1, 2026 2028.
    Sec. 4.  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 2027, and whose tax year ends prior to December 31, 2025 2027, 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 2027. 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 2027.
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-15 gasoline.
   The bill extends the eligibility of a retail dealer to claim the E-15 plus gasoline promotion tax credit from January 1, 2026, to January 1, 2028, for purposes of the individual income and corporate income taxes. The bill extends the E-15 plus gasoline promotion tax credit from January 1, 2026, to January 1, 2028, for purposes of the corporate income tax.
   As a result of extending the E-15 plus gasoline promotion tax credit, the bill also extends the ability of a retail dealer to claim the E-85 promotion tax credit to January 1, 2028, even if the retail dealer claims an E-15 plus gasoline promotion tax credit during the same year.
   The bill amends the Iowa Acts to ensure the availability of the E-15 plus gasoline promotion 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.