The proposed bill amends the Income Tax Act of 1967 by adding a new section, Sec. 279, 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 credits based on the percentage of biodiesel in the fuel they sell, with varying amounts: $0.02 per gallon for blends of 6.0% to 9.0% biodiesel, $0.05 for blends of 10% to 19%, and $0.07 for blends of 20% or more. Additionally, biodiesel producers can claim a credit of $0.02 per gallon of biodiesel produced in the state, with an aggregate cap of $2 million on credits claimed under this section and another related section.

The bill also establishes a pro rata distribution method for credits if the total claims exceed set caps, which are $16 million for retail dealer credits and $2 million for biodiesel producer credits. If a taxpayer's credit exceeds their tax liability, the excess will be refunded. Definitions for key terms such as "biodiesel," "biodiesel blend," and "motor fuel site" are also included to clarify the scope of the bill. The enactment of this bill is contingent upon the passage of another related House Bill.

Statutes affected:
House Introduced Bill: 206.1, 206.847