The proposed bill amends the Income Tax Act of 1967 by adding Section 679, which introduces tax credits for retail dealers and biodiesel producers in Michigan. For tax years from January 1, 2025, to December 31, 2030, retail dealers can claim a credit based on the percentage of biodiesel in the fuel they sell, with credits of $0.02, $0.05, and $0.07 per gallon for blends containing 6.0% to 9.0%, 10% to 19%, and 20% or more biodiesel, respectively. Additionally, biodiesel producers can claim a credit of $0.02 per gallon of biodiesel produced in the state. However, the total credits for retail dealers and biodiesel producers are capped at $16 million and $2 million, respectively, with provisions for prorating credits if the cap is exceeded.

The bill also outlines definitions for key terms such as "biodiesel," "biodiesel blend," and "motor fuel site," ensuring clarity in the application of the tax credits. If the credit exceeds a taxpayer's tax liability, the excess amount will be refunded. The enactment of this bill is contingent upon the passage of another related bill in the legislature.

Statutes affected:
House Introduced Bill: 206.1, 206.847