This bill amends the Income Tax Act of 1967 by adding a new 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 biodiesel blends of 6.0% to 9.0%, 10% to 19%, and 20% or more, respectively. Additionally, biodiesel producers can claim a credit of $0.02 per gallon of biodiesel produced in the state. However, the total credits allowed 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 stipulates 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 provided 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