Bill Text: IA HSB244 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A study bill for creating a cellulosic ethanol production tax credit available against the individual and corporate income tax and including effective date and retroactive and other applicability provisions.
Spectrum: Unknown
Status: (Introduced - Dead) 0000-00-00 - Ways and Means: Windschitl Chair,Isenhart, and Sands. [HSB244 Detail]
Download: Iowa-2015-HSB244-Introduced.html
House
Study
Bill
244
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
SANDS)
A
BILL
FOR
An
Act
creating
a
cellulosic
ethanol
production
tax
credit
1
available
against
the
individual
and
corporate
income
tax
2
and
including
effective
date
and
retroactive
and
other
3
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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_____
Section
1.
NEW
SECTION
.
422.10A
Cellulosic
ethanol
1
production
tax
credit.
2
1.
As
used
in
this
section,
unless
the
context
otherwise
3
requires:
4
a.
“Cellulosic
biomass
materials”
means
any
lignocellulosic
5
or
hemicellulosic
matter
that
is
available
on
a
renewable
or
6
recurring
basis,
including
energy
crops
grown
specifically
for
7
fuel
production
such
as
switchgrass,
and
including
agricultural
8
plant
residues
such
as
corn
stover,
rice
hulls,
sugarcane,
and
9
cereal
straws.
10
b.
“Cellulosic
ethanol”
means
ethyl
alcohol
for
use
as
motor
11
fuel
that
meets
the
current
American
society
for
testing
and
12
materials
standard
D4806
for
ethanol
that
is
produced
from
13
cellulosic
biomass
materials.
14
c.
“Cellulosic
ethanol
producer”
means
an
entity
that
uses
15
cellulosic
biomass
materials
to
manufacture
cellulosic
ethanol
16
at
a
location
in
this
state.
17
2.
The
taxes
imposed
under
this
division,
less
the
18
credits
allowed
under
section
422.12,
shall
be
reduced
by
a
19
cellulosic
ethanol
production
tax
credit
to
a
taxpayer
who
is
20
a
cellulosic
ethanol
producer
equal
to
the
product
of
twenty
21
cents
multiplied
by
the
number
of
gallons
of
cellulosic
ethanol
22
produced
in
this
state
by
the
cellulosic
ethanol
producer
23
during
the
calendar
year,
not
to
exceed
five
million
dollars
24
per
cellulosic
ethanol
producer
per
calendar
year.
25
3.
Any
tax
credit
in
excess
of
the
tax
liability
is
26
refundable.
In
lieu
of
claiming
a
refund,
the
taxpayer
27
may
elect
to
have
the
overpayment
shown
on
the
taxpayer’s
28
final,
completed
return
credited
to
the
tax
liability
for
the
29
following
tax
year.
30
4.
An
individual
may
claim
the
tax
credit
allowed
a
31
partnership,
limited
liability
company,
S
corporation,
estate,
32
or
trust
electing
to
have
the
income
taxed
directly
to
the
33
individual.
The
amount
claimed
by
the
individual
shall
be
34
based
upon
the
pro
rata
share
of
the
individual’s
earnings
of
35
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the
partnership,
limited
liability
company,
S
corporation,
1
estate,
or
trust.
2
5.
The
department
shall
adopt
rules
pursuant
to
chapter
17A
3
to
administer
this
section.
4
6.
This
section
is
repealed
January
1,
2025.
5
Sec.
2.
Section
422.33,
Code
2015,
is
amended
by
adding
the
6
following
new
subsection:
7
NEW
SUBSECTION
.
23.
a.
The
taxes
imposed
under
this
8
division
shall
be
reduced
by
a
cellulosic
ethanol
production
9
tax
credit
allowed
under
section
422.10A.
10
b.
This
section
is
repealed
on
January
1,
2025.
11
Sec.
3.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
12
immediate
importance,
takes
effect
upon
enactment.
13
Sec.
4.
APPLICABILITY.
This
Act
applies
to
cellulosic
14
ethanol
produced
in
this
state
on
or
after
the
effective
date
15
of
this
Act.
16
Sec.
5.
RETROACTIVE
APPLICABILITY.
This
Act
applies
17
retroactively
to
January
1,
2015,
for
tax
years
beginning
on
18
or
after
that
date.
19
EXPLANATION
20
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
21
the
explanation’s
substance
by
the
members
of
the
general
assembly.
22
This
bill
creates
a
tax
credit
available
against
the
23
individual
and
corporate
income
tax
for
the
production
of
24
cellulosic
ethanol
in
this
state
by
a
cellulosic
ethanol
25
producer.
“Cellulosic
ethanol”,
“cellulosic
ethanol
producer”,
26
and
other
related
terms
are
defined
in
the
bill.
The
tax
27
credit
is
equal
to
the
product
of
20
cents
multiplied
by
28
the
number
of
gallons
of
cellulosic
ethanol
produced
by
a
29
cellulosic
ethanol
producer
in
this
state
during
a
calendar
30
year,
not
to
exceed
a
maximum
of
$5
million
per
cellulosic
31
ethanol
producer
per
calendar
year.
The
tax
credit
is
32
refundable
but
may
be
carried
forward
to
the
following
tax
year
33
in
lieu
of
a
refund.
The
tax
credit
is
repealed
on
January
1,
34
2025.
35
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