Bill Text: IA HF555 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act relating to ethanol by providing for tax credits and reporting for ethanol blended gasoline, and including effective date and applicability provisions. (Formerly HSB 109)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2011-12-31 - END OF 2011 ACTIONS [HF555 Detail]
Download: Iowa-2011-HF555-Introduced.html
House
File
555
-
Introduced
HOUSE
FILE
555
BY
COMMITTEE
ON
AGRICULTURE
(SUCCESSOR
TO
HSB
109)
A
BILL
FOR
An
Act
relating
to
ethanol
by
providing
for
tax
credits
and
1
reporting
for
ethanol
blended
gasoline,
and
including
2
effective
date
and
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
2.48,
subsection
3,
paragraph
d,
1
subparagraph
(5),
Code
2011,
is
amended
to
read
as
follows:
2
(5)
The
ethanol
E-15
promotion
tax
credits
available
under
3
section
422.11N
.
4
Sec.
2.
Section
422.11N,
subsection
1,
paragraph
f,
Code
5
2011,
is
amended
to
read
as
follows:
6
f.
“Tax
credit”
means
the
ethanol
E-15
promotion
tax
credit
7
as
provided
in
this
section
.
8
Sec.
3.
Section
422.11N,
subsection
3,
Code
2011,
is
amended
9
to
read
as
follows:
10
3.
The
taxes
imposed
under
this
division
,
less
the
tax
11
credits
allowed
under
section
422.12
,
shall
be
reduced
by
an
12
ethanol
E-15
gasoline
promotion
tax
credit
for
each
tax
year
13
that
the
taxpayer
is
eligible
to
claim
the
tax
credit
under
14
this
section
.
In
order
to
be
eligible,
all
of
the
following
15
must
apply:
16
a.
The
taxpayer
is
a
retail
dealer
who
sells
and
dispenses
17
ethanol
blended
gasoline
designated
as
E-15
or
higher
pursuant
18
to
section
214A.2
through
a
motor
fuel
pump
in
the
tax
year
in
19
which
the
tax
credit
is
claimed.
20
b.
The
retail
dealer
complies
with
requirements
of
the
21
department
to
administer
this
section
.
22
Sec.
4.
Section
422.11N,
subsection
4,
paragraph
d,
Code
23
2011,
is
amended
by
striking
the
paragraph.
24
Sec.
5.
Section
422.11N,
subsection
5,
paragraph
a,
25
unnumbered
paragraph
1,
Code
2011,
is
amended
to
read
as
26
follows:
27
For
a
retail
dealer
whose
tax
year
is
the
same
as
a
28
determination
period
beginning
on
January
1
and
ending
on
29
December
31,
the
retail
dealer’s
tax
credit
is
calculated
by
30
multiplying
the
retail
dealer’s
total
ethanol
gallonage
from
31
ethanol
blended
gasoline
designated
as
E-15
or
higher,
pursuant
32
to
section
214A.2,
by
a
tax
credit
rate,
which
may
be
adjusted
33
based
on
the
retail
dealer’s
biofuel
threshold
percentage
34
disparity.
The
tax
credit
rate
is
as
follows:
35
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Sec.
6.
Section
422.11N,
subsection
5,
paragraph
a,
1
subparagraph
(1),
Code
2011,
is
amended
to
read
as
follows:
2
(1)
For
any
tax
year
in
which
the
retail
dealer
has
attained
3
a
biofuel
threshold
percentage
for
the
determination
period,
4
the
tax
credit
rate
is
six
sixteen
and
one-half
cents.
5
Sec.
7.
Section
422.11N,
subsection
5,
paragraph
a,
6
subparagraph
(2),
subparagraph
divisions
(a)
and
(b),
Code
7
2011,
are
amended
to
read
as
follows:
8
(a)
If
the
retail
dealer’s
biofuel
threshold
percentage
9
disparity
equals
two
percent
or
less,
the
tax
credit
rate
is
10
four
fourteen
and
one-half
cents.
11
(b)
If
the
retail
dealer’s
biofuel
threshold
percentage
12
disparity
equals
more
than
two
percent
but
not
more
than
four
13
percent,
the
tax
credit
rate
is
two
twelve
and
one-half
cents.
14
Sec.
8.
Section
422.11N,
subsection
6,
Code
2011,
is
amended
15
to
read
as
follows:
16
6.
A
retail
dealer
is
eligible
to
claim
an
ethanol
E-15
17
gasoline
promotion
tax
credit
as
provided
in
this
section
even
18
though
the
retail
dealer
claims
an
E-85
gasoline
promotion
tax
19
credit
pursuant
to
section
422.11O
for
the
same
tax
year
and
20
for
the
same
ethanol
gallonage.
21
Sec.
9.
Section
422.11O,
subsection
5,
Code
2011,
is
amended
22
to
read
as
follows:
23
5.
A
retail
dealer
is
eligible
to
claim
an
E-85
gasoline
24
promotion
tax
credit
as
provided
in
this
section
even
though
25
the
retail
dealer
claims
an
ethanol
E-15
gasoline
promotion
tax
26
credit
pursuant
to
section
422.11N
for
the
same
tax
year
for
27
the
same
ethanol
gallonage.
28
Sec.
10.
Section
422.33,
subsection
11A,
unnumbered
29
paragraph
1,
Code
2011,
is
amended
to
read
as
follows:
30
The
taxes
imposed
under
this
division
shall
be
reduced
by
31
an
ethanol
E-15
promotion
tax
credit
for
each
tax
year
that
32
the
taxpayer
is
eligible
to
claim
the
tax
credit
under
this
33
subsection
.
34
Sec.
11.
Section
422.33,
subsection
11A,
paragraphs
a
and
b,
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Code
2011,
are
amended
to
read
as
follows:
1
a.
The
taxpayer
shall
claim
the
tax
credit
in
the
same
2
manner
as
provided
in
section
422.11N
.
The
taxpayer
may
claim
3
the
tax
credit
according
to
the
same
requirements,
for
the
same
4
amount,
and
calculated
in
the
same
manner,
as
provided
for
the
5
ethanol
E-15
promotion
tax
credit
pursuant
to
section
422.11N
.
6
b.
Any
ethanol
E-15
promotion
tax
credit
which
is
in
excess
7
of
the
taxpayer’s
tax
liability
shall
be
refunded
or
may
be
8
shown
on
the
taxpayer’s
final,
completed
return
credited
to
the
9
tax
liability
for
the
following
tax
year
in
the
same
manner
as
10
provided
in
section
422.11N
.
11
Sec.
12.
Section
452A.31,
subsection
2,
paragraph
a,
12
subparagraph
(1),
Code
2011,
is
amended
to
read
as
follows:
13
(1)
The
total
ethanol
blended
gasoline
gallonage
which
14
is
the
retail
dealer’s
total
number
of
gallons
of
ethanol
15
blended
gasoline
and
which
includes
any
subclassification
16
required
by
the
department.
However,
the
total
ethanol
blended
17
gasoline
gallonage
must
at
least
include
all
of
the
following
18
subclassifications:
19
(a)
The
total
E-xx
E-10
gasoline
gallonage
which
is
the
20
total
number
of
gallons
of
ethanol
blended
gasoline
other
than
21
E-85
gasoline
designated
as
E-9
or
E-10
.
22
(b)
The
total
E-15
gasoline
gallonage
which
is
the
total
23
number
of
gallons
of
ethanol
blended
gasoline
designated
as
24
E-11
to
E-15.
25
(c)
The
total
E-85
flexible
fuel
gasoline
gallonage
which
26
is
the
total
number
of
gallons
of
ethanol
blended
gasoline
27
designated
as
E-16
to
E-85
gasoline
.
28
Sec.
13.
Section
452A.31,
subsection
4,
paragraph
a,
29
subparagraph
(1),
Code
2011,
is
amended
by
striking
the
30
subparagraph
and
inserting
in
lieu
thereof
the
following:
31
(1)
The
aggregate
ethanol
blended
gasoline
gallonage
which
32
is
the
aggregate
total
number
of
gallons
of
ethanol
blended
33
gasoline
and
which
includes
the
aggregate
ethanol
blended
34
gasoline
gallonage
for
each
subclassification
provided
for
in
35
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subsection
2.
1
Sec.
14.
NEW
SECTION
.
452A.34
Classification
of
ethanol
2
blended
fuel.
3
For
purposes
of
this
division,
ethanol
blended
fuel
shall
be
4
classified
in
the
same
manner
as
provided
in
section
214A.2.
5
Sec.
15.
2006
Iowa
Acts,
chapter
1142,
section
49,
6
subsection
2,
as
amended
by
2006
Iowa
Acts,
chapter
1175,
7
section
17,
is
amended
to
read
as
follows:
8
2.
For
a
retail
dealer
who
may
claim
an
ethanol
E-15
9
promotion
tax
credit
under
section
422.11N
or
422.33,
10
subsection
11A,
as
enacted
in
this
Act
and
amended
in
11
subsequent
Acts
,
in
calendar
year
2020
and
whose
tax
year
ends
12
prior
to
December
31,
2020,
the
retail
dealer
may
continue
to
13
claim
the
tax
credit
in
the
retail
dealer’s
following
tax
year.
14
In
that
case,
the
tax
credit
shall
be
calculated
in
the
same
15
manner
as
provided
in
section
422.11N
or
422.33,
subsection
16
11A,
as
enacted
in
this
Act
and
amended
in
subsequent
Acts
,
17
for
the
remaining
period
beginning
on
the
first
day
of
the
18
retail
dealer’s
new
tax
year
until
December
31,
2020.
For
19
that
remaining
period,
the
tax
credit
shall
be
calculated
in
20
the
same
manner
as
a
retail
dealer
whose
tax
year
began
on
the
21
previous
January
1
and
who
is
calculating
the
tax
credit
on
22
December
31,
2020.
23
Sec.
16.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
24
2012.
25
Sec.
17.
APPLICABILITY.
The
sections
of
this
Act
amending
26
section
422.11N
and
section
422.33,
subsection
11A,
and
the
27
section
of
this
Act
amending
2006
Iowa
Acts,
chapter
1142,
28
section
49,
subsection
2,
as
amended
by
2006
Iowa
Acts,
chapter
29
1175,
section
17,
apply
to
tax
years
beginning
on
or
after
30
January
1,
2012.
31
EXPLANATION
32
GENERALLY.
The
bill
relates
to
ethanol
blended
gasoline
33
regulated
by
the
department
of
agriculture
and
land
stewardship
34
pursuant
to
Code
chapter
214A
and
classified
according
to
the
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percentage
of
ethanol
blended
into
the
gasoline
(e.g.,
E-10
1
means
a
gallon
of
gasoline
containing
10
percent
ethanol).
2
ETHANOL
PROMOTION
TAX
CREDIT.
The
bill
amends
the
ethanol
3
promotion
tax
credit
which
is
calculated
separately
for
each
4
retail
motor
fuel
site
from
which
the
retail
dealer
sells
and
5
dispenses
ethanol
blended
gasoline
(Code
sections
422.11N
and
6
422.33,
subsection
11A).
The
tax
credit
rate
depends
upon
the
7
number
of
gallons
of
ethanol
blended
gasoline
and
biodiesel
8
blended
fuel
that
a
retail
dealer
sold
throughout
a
calendar
9
year
(referred
to
as
a
determination
period).
The
amount
of
10
the
tax
credit
depends
upon
whether
the
retail
dealer
met
that
11
biofuel
threshold.
This
bill
renames
the
tax
credit
as
the
12
E-15
promotion
tax
credit,
and
provides
that
the
tax
credit
13
applies
only
to
those
gallons
of
ethanol
blended
gasoline
14
designated
as
E-15
or
higher.
It
also
allows
a
retail
dealer
15
filing
a
tax
return
on
a
noncalendar
year
basis
to
claim
the
16
tax
credit.
The
tax
credit
is
eliminated
on
January
1,
2021.
17
REPORTING.
The
bill
also
amends
reporting
requirements
18
by
retail
dealers
and
the
department
of
revenue.
A
retail
19
dealer’s
report
calculates
the
total
motor
fuel
gallonage,
20
and
further
divides
that
number
based
on
a
number
of
21
classifications
depending
upon
the
type
of
motor
fuel
sold,
22
including
ethanol
blended
gasoline
gallonage.
The
department
23
then
calculates
the
aggregate
total
for
the
motor
fuel
24
gallonage
including
by
classification
for
the
determination
25
period.
The
bill
revises
the
reporting
classifications
for
26
ethanol
blended
gasoline,
by
including
subclassifications
for
27
E-9
and
E-10,
E-11
to
E-15,
and
E-16
to
E-85.
It
provides
that
28
the
department
may
establish
additional
subclassifications.
29
The
bill
is
effective
on
January
1,
2012,
and
tax
credit
30
provisions
are
applicable
to
the
tax
years
beginning
on
or
31
after
that
date.
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