This bill amends the Income Tax Act of 1967 by adding two new sections, 279 and 679, which establish tax credits for retail dealers selling specific types of fuel. For tax years beginning on January 1, 2026, through 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 the credit exceeds the taxpayer's tax liability for the year, the excess amount will be refunded.

The bill defines key terms related to the credits, including "E15 fuel," which is gasoline blended with 10% to 15% ethanol, and "E85 fuel," which contains 50% to 83% ethanol. It also clarifies that the credits apply to retail dealers as defined in the motor fuel tax act. The provisions aim to incentivize the sale of higher ethanol content fuels, promoting alternative energy sources in Michigan.

Statutes affected:
House Introduced Bill: 206.1, 206.847