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

The definitions of "beverage container," "distributor," and "returnable container" are aligned with existing definitions in the law, and the bill specifies that the United States Consumer Price Index is defined as reported by the Department of Labor. Additionally, the bill includes a provision stating that it will not take effect unless Senate Bill No. 512 is also enacted into law.

Statutes affected:
Senate Introduced Bill: 206.1, 206.847