This bill amends the Income Tax Act of 1967 by adding a new section, Sec. 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 6-9%, 10-19%, 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 both retail dealers and biodiesel producers are capped at $2,000,000 and $16,000,000 per tax year, respectively, with provisions for prorating credits if the caps are exceeded.

The bill also specifies that if the credit exceeds a taxpayer's tax liability, the excess amount will be refunded. Definitions for key terms such as "biodiesel," "biodiesel blend," and "retail dealer" are included to clarify the scope of the legislation. 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