This bill amends the Income Tax Act of 1967 by adding two new sections, 279 and 679, which establish a tax credit for distributors who originate deposits on beverage containers. Starting from tax years beginning on or after January 1, 2026, these distributors can claim a credit of $0.005 for each returnable container sold. The bill stipulates that beginning in the 2027 tax year, this credit amount will be adjusted annually based on the percentage increase in the United States Consumer Price Index for the preceding calendar year. To qualify for the credit, distributors must attach a specific report to their annual tax return.

Additionally, the bill outlines provisions for partnerships, limited liability companies, and subchapter S corporations, allowing them to claim the credit based on their ownership share or an alternative method approved by the department. If the credit exceeds the taxpayer's tax liability for the year, the excess amount will be refunded. The definitions of "beverage container," "distributor," and "returnable container" are aligned with existing law, and the bill will only take effect if related legislation is also enacted.

Statutes affected:
House Introduced Bill: 206.1, 206.847