Bill Text: IA SF2309 | 2015-2016 | 86th General Assembly | Enrolled
Bill Title: A bill for an act providing for tax credits and refunds relating to renewable fuels including their component biofuels and including effective date provisions. (Formerly SF 2052 and SF 2223.)
Spectrum: Committee Bill
Status: (Enrolled - Dead) 2016-04-29 - Sent to Governor. S.J. 0. [SF2309 Detail]
Download: Iowa-2015-SF2309-Enrolled.html
Senate File 2309 - Enrolled
SENATE FILE
BY COMMITTEE ON WAYS AND
MEANS
(SUCCESSOR TO SF 2223)
(SUCCESSOR TO SF 2052)
\5
A BILL FOR
\1
Senate File 2309
AN ACT
PROVIDING FOR TAX CREDITS AND REFUNDS RELATING TO RENEWABLE
FUELS INCLUDING THEIR COMPONENT BIOFUELS AND INCLUDING
EFFECTIVE DATE PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
INCOME TAX ==== E=15 PLUS GASOLINE PROMOTION TAX CREDIT
Section 1. Section 422.11Y, subsection 9, Code 2016, is
amended to read as follows:
9. This section is repealed on January 1, 2018 2025.
Sec. 2. Section 422.33, subsection 11D, paragraph c, Code
2016, is amended to read as follows:
c. This subsection is repealed on January 1, 2018 2025.
Sec. 3. 2011 Iowa Acts, chapter 113, section 37, 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 2017
2024, and whose tax year ends prior to December 31, 2017 2024,
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, 2017 2024. 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, 2017 2024.
DIVISION II
INCOME TAX ==== E=85 GASOLINE PROMOTION TAX CREDIT
Sec. 4. Section 422.11O, subsection 8, Code 2016, is amended
to read as follows:
8. This section is repealed on January 1, 2018 2025.
Sec. 5. Section 422.33, subsection 11B, paragraph c, Code
2016, is amended to read as follows:
c. This subsection is repealed on January 1, 2018 2025.
Sec. 6. 2006 Iowa Acts, chapter 1142, section 49, subsection
3, as amended by 2011 Iowa Acts, chapter 113, section 20, 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 2017 2024 and whose tax
year ends prior to December 31, 2017 2024, 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, 2017 2024. 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, 2017 2024.
DIVISION III
INCOME TAX ==== BIODIESEL BLENDED FUEL TAX CREDIT
Sec. 7. Section 422.11P, subsection 3, paragraph b, Code
2016, is amended to read as follows:
b. The tax credit shall apply to biodiesel blended fuel
classified as provided in this section, if the classification
meets the standards provided in section 214A.2. In ensuring
that biodiesel blended fuel meets the classification
requirements of this section, the department shall take
into account reasonable variances due to testing and other
limitations. The department shall adopt rules to provide that
where a blending error occurs and an insufficient amount of
biodiesel has inadvertently been blended with petroleum=based
diesel fuel so that the mixture fails to qualify as B=11 or
higher a one percent tolerance applies when classifying the
biodiesel blended fuel.
Sec. 8. Section 422.11P, subsections 4 and 8, Code 2016, are
amended to read as follows:
4. For a retail dealer whose tax year is on a calendar year
basis, the retail dealer shall calculate the amount of the tax
credit by multiplying a designated rate by the retail dealer's
total biodiesel blended fuel gallonage as provided in section
452A.31 which qualifies under this subsection.
a. In calendar year 2012, in order to qualify for the tax
credit, the biodiesel blended fuel must be classified as B=2
B=5 or higher as provided in paragraph "b".
(1) For biodiesel blended fuel classified as B=2 or higher
but not as high as B=5, the designated rate is two cents.
(2)b. (1) (a) For Until December 31, 2017, for biodiesel
blended fuel classified as B=5 or higher, the designated rate
is four and one=half cents.
(b) This subparagraph (1) is repealed on January 1, 2019.
b. (2) In calendar year 2013 and for each subsequent
calendar year, in order to qualify for the tax credit, the
Beginning January 1, 2018, the designated rate is determined
as follows:
(a) For biodiesel blended fuel must be classified as B=5
or higher. The but not as high as B=11, the designated rate
for the qualifying biodiesel blended fuel is four and one=half
three and one=half cents.
(b) For biodiesel blended fuel classified as B=11 or higher,
the designated rate is five and one=half cents.
8. This section is repealed January 1, 2018 2025.
Sec. 9. Section 422.33, subsection 11C, paragraph c, Code
2016, is amended to read as follows:
c. This subsection is repealed on January 1, 2018 2025.
Sec. 10. 2011 Iowa Acts, chapter 113, section 31, 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
2017 2024, and whose tax year ends prior to December 31, 2017
2024, 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, 2017 2024. 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, 2017 2024.
DIVISION IV
SALES AND USE TAX ==== BIODIESEL PRODUCTION REFUND
Sec. 11. Section 423.4, subsection 9, paragraph e, Code
2016, is amended to read as follows:
e. This subsection is repealed on January 1, 2018 2025.
DIVISION V
FUTURE REPEALS
Sec. 12. Section 422.11O, subsection 5, Code 2016, is
amended to read as follows:
5. a. A retail dealer is eligible to claim an E=85 gasoline
promotion tax credit as provided in this section even though
the retail dealer claims one or all of the following related
tax credits:
(1) The ethanol promotion tax credit pursuant to section
422.11N.
(2) The an E=15 plus gasoline promotion tax credit pursuant
to section 422.11Y.
b. (1) The retail dealer may claim the E=85 gasoline
promotion tax credit and one or more of the related tax credits
as provided in paragraph "a" for the same tax year.
(2) The retail dealer may claim the ethanol promotion
tax credit as provided in paragraph "a" for the same ethanol
gallonage used to calculate and claim the E=85 gasoline
promotion tax credit.
Sec. 13. Section 422.11Y, subsection 6, Code 2016, is
amended to read as follows:
6. a. A retail dealer is eligible to claim an E=15 plus
gasoline promotion tax credit as provided in this section even
though the retail dealer claims one or all of the following
related tax credits:
(1) The ethanol promotion tax credit pursuant to section
422.11N.
(2) The an E=85 gasoline promotion tax credit pursuant to
section 422.11O.
b. (1) The retail dealer may claim the E=15 plus gasoline
promotion tax credit and one or more of the related tax credits
as provided in paragraph "a" for the same tax year.
(2) The retail dealer may claim the ethanol promotion
tax credit as provided in paragraph "a" for the same ethanol
gallonage used to calculate and claim the E=15 plus gasoline
promotion tax credit.
Sec. 14. REPEAL. Any intervening provision effective prior
to the effective date of this division of this Act that amends
section 422.11O, subsection 5, or section 422.11Y, subsection
6, as amended in this division of this Act, is repealed, unless
that Act or another Act specifically provides otherwise.
Sec. 15. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2021.
PAM JOCHUM
President of the Senate
LINDA UPMEYER
Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 2309, Eighty=sixth General Assembly.
MICHAEL E. MARSHALL
Secretary of the Senate
Approved , 2016
TERRY E. BRANSTAD
Governor
-1-
