This bill amends the Income Tax Act of 1967 by adding two new sections, 284 and 674, which provide tax credits for retail dealers selling specific types of fuel. For tax years from January 1 to December 31, 2030, retail dealers can claim a credit of $0.05 per gallon for E15 fuel and $0.085 per gallon for E85 fuel sold through metered pumps at their motor fuel sites. Additionally, if a taxpayer is a member of a flow-through entity that qualifies for the credit, they may claim a credit based on their distributive share of business income from that entity.

The bill also stipulates that if the credit exceeds the taxpayer's tax liability for the year, the excess amount must be refunded. Definitions for E15 fuel, E85 fuel, motor fuel, motor fuel site, and retail dealer are provided to clarify the terms used in the new sections. Overall, this legislation aims to incentivize the sale of higher ethanol fuel blends by offering financial benefits to retail dealers.

Statutes affected:
Substitute (H-1): 206.1, 206.847
House Introduced Bill: 206.1, 206.847
As Passed by the House: 206.1, 206.847