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, distributors who originate a deposit on a beverage container can claim a credit of $0.005 for each returnable container sold during the tax year. The bill stipulates that from the 2027 tax year onward, this credit amount will be adjusted annually based on the percentage increase in the United States Consumer Price Index. To qualify for the credit, taxpayers must attach a specific report to their annual tax return.

Additionally, the bill outlines that if the credit exceeds the taxpayer's tax liability for the year, the excess amount will be refunded. It also defines key terms such as "beverage container," "distributor," and "returnable container" in accordance with existing law. The provisions aim to incentivize recycling and responsible beverage container management by providing financial relief to distributors.

Statutes affected:
House Introduced Bill: 206.1, 206.847
As Passed by the House: 206.1, 206.847