Indiana 2023 Regular Session

Indiana House Bill HB1080 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1080
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-3.1; IC 6-6-2.5-1.5.
7	7	Synopsis: Biofuel tax credits. Provides tax credits for: (1) the sale of
8	8	higher ethanol blend; and (2) the: (A) sale of blended biodiesel; and
9	9	(B) blending of biodiesel. Provides that the amount of the higher
10	10	ethanol blend tax credit is $0.05 per gallon of higher ethanol blend sold
11	11	at the taxpayer's fueling station. Provides that the total amount of
12	12	higher ethanol blend tax credits that may be awarded for a state fiscal
13	13	year may not exceed $10,000,000. Provides that the amount of the
14	14	biodiesel tax credit is computed as follows: (1) $0.05 per gallon of
15	15	blended biodiesel of at least 5% but not more than 10%: (A) sold at the
16	16	taxpayer's fueling station; or (B) sold by a distributor directly to the
17	17	final user. (2) $0.10 per gallon of blended biodiesel that is more than
18	18	10% but not more than 20%: (A) sold at the taxpayer's fueling station;
19	19	or (B) sold by a distributor directly to the final user. (3) $0.18 per
20	20	gallon of blended biodiesel that is more than 20%: (A) sold at the
21	21	taxpayer's fueling station; or (B) sold by a distributor directly to the
22	22	final user. (4) For a person who blends biodiesel, the product of: (A)
23	23	$0.035; multiplied by (B) the number of gallons of blended biodiesel
24	24	that are produced by blending biodiesel at a terminal located in
25	25	Indiana. Provides that the biodiesel tax credit is refundable. Provides
26	26	that the total amount of biodiesel tax credits that may be awarded for
27	27	a state fiscal year may not exceed $5,000,000.
28	28	Effective: July 1, 2023.
29	29	Heine
30	30	January 9, 2023, read first time and referred to Committee on Ways and Means.
31	31	2023 IN 1080—LS 6331/DI 129 Introduced
32	32	First Regular Session of the 123rd General Assembly (2023)
33	33	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
34	34	Constitution) is being amended, the text of the existing provision will appear in this style type,
35	35	additions will appear in this style type, and deletions will appear in this style type.
36	36	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
37	37	provision adopted), the text of the new provision will appear in this style type. Also, the
38	38	word NEW will appear in that style type in the introductory clause of each SECTION that adds
39	39	a new provision to the Indiana Code or the Indiana Constitution.
40	40	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
41	41	between statutes enacted by the 2022 Regular Session of the General Assembly.
42	42	HOUSE BILL No. 1080
43	43	A BILL FOR AN ACT to amend the Indiana Code concerning
44	44	taxation.
45	45	Be it enacted by the General Assembly of the State of Indiana:
46	46	1 SECTION 1. IC 6-3.1-37 IS ADDED TO THE INDIANA CODE
47	47	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
48	48	3 JULY 1, 2023]:
49	49	4 Chapter 37. Higher Ethanol Blend Tax Credit
50	50	5 Sec. 1. This chapter applies to taxable years beginning after
51	51	6 December 31, 2023.
52	52	7 Sec. 2. As used in this chapter, "fueling station" means a retail
53	53	8 location within Indiana from which higher ethanol blend is sold to
54	54	9 the public and is dispensed directly into the fuel tank of a
55	55	10 customer's motor vehicle.
56	56	11 Sec. 3. As used in this chapter, "higher ethanol blend" means an
57	57	12 ethanol blend that is at least fifteen percent (15%) but not more
58	58	13 than eighty-five percent (85%) ethanol and is dispensed directly
59	59	14 into the fuel tank of a motor vehicle.
60	60	15 Sec. 4. As used in this chapter, "metered pump" means a
61	61	16 stationary pump that is capable of metering the amount of
62	62	17 gasoline, special fuel, or higher ethanol blend dispensed from it and
63	63	2023 IN 1080—LS 6331/DI 129 2
64	64	1 that is capable of simultaneously calculating and displaying the
65	65	2 price of the gasoline, special fuel, or higher ethanol blend
66	66	3 dispensed.
67	67	4 Sec. 5. As used in this chapter, "state tax liability" means a
68	68	5 taxpayer's total tax liability that is incurred under IC 6-3-1
69	69	6 through IC 6-3-7 (the adjusted gross income tax) as computed after
70	70	7 the application of the credits that, under IC 6-3.1-1-2, are to be
71	71	8 applied before the credit provided by this chapter.
72	72	9 Sec. 6. As used in this chapter, "taxpayer" means any person,
73	73	10 corporation, limited liability company, partnership, or other entity
74	74	11 that:
75	75	12 (1) owns a fueling station;
76	76	13 (2) sells higher ethanol blend at the fueling station; and
77	77	14 (3) has state tax liability.
78	78	15 Sec. 7. A taxpayer is entitled to a credit against the taxpayer's
79	79	16 state tax liability for higher ethanol blend sold at the taxpayer's
80	80	17 fueling station during a particular taxable year. The amount of the
81	81	18 credit provided by this chapter equals five cents ($0.05) per gallon
82	82	19 of higher ethanol blend that the retail dealer sells and dispenses
83	83	20 through a metered pump at the taxpayer's fueling station during
84	84	21 the taxable year.
85	85	22 Sec. 8. (a) The credit must be used for the taxable year in which
86	86	23 the credit accrued. However, if the amount of the credit
87	87	24 determined under this chapter for a taxpayer's taxable year
88	88	25 exceeds the taxpayer's state tax liability for that taxable year, the
89	89	26 taxpayer may carry over the excess to the following taxable years.
90	90	27 The amount of the credit carryover from a taxable year must be
91	91	28 reduced to the extent that the carryover is used by the taxpayer to
92	92	29 obtain a credit under this chapter for any subsequent year. A
93	93	30 credit may not be carried forward for more than three (3) taxable
94	94	31 years following the taxable year in which the taxpayer is first
95	95	32 entitled to claim the credit.
96	96	33 (b) A taxpayer is not entitled to a carryback or refund of any
97	97	34 unused credit.
98	98	35 (c) A taxpayer may not sell, assign, convey, or otherwise
99	99	36 transfer the credit provided by this chapter.
100	100	37 Sec. 9. If a pass through entity that qualifies for the credit does
101	101	38 not have state tax liability against which the credit may be applied,
102	102	39 a shareholder, partner, or member of the pass through entity may
103	103	40 claim a credit under this chapter equal to:
104	104	41 (1) the credit determined for the pass through entity under
105	105	42 this chapter for the taxable year; multiplied by
106	106	2023 IN 1080—LS 6331/DI 129 3
107	107	1 (2) the percentage of the pass through entity's distributive
108	108	2 income to which the shareholder, partner, or member is
109	109	3 entitled.
110	110	4 Sec. 10. The total amount of tax credits that may be awarded
111	111	5 under this chapter for a state fiscal year may not exceed ten million
112	112	6 dollars ($10,000,000).
113	113	7 Sec. 11. This chapter expires January 1, 2030.
114	114	8 SECTION 2. IC 6-3.1-38 IS ADDED TO THE INDIANA CODE
115	115	9 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
116	116	10 JULY 1, 2023]:
117	117	11 Chapter 38. Biodiesel Tax Credit
118	118	12 Sec. 1. This chapter applies to taxable years beginning after
119	119	13 December 31, 2023.
120	120	14 Sec. 2. As used in this chapter, "biodiesel" has the meaning set
121	121	15 forth in IC 6-6-2.5-1.5(a).
122	122	16 Sec. 3. As used in this chapter, "blender" means a person,
123	123	17 corporation, limited liability company, partnership, or other entity
124	124	18 that blends biodiesel at a terminal located in Indiana.
125	125	19 Sec. 4. As used in this chapter, "blended biodiesel" has the
126	126	20 meaning set forth in IC 6-6-2.5-1.5(b).
127	127	21 Sec. 5. As used in this chapter, "distributor" means a person,
128	128	22 corporation, limited liability company, partnership, or other entity
129	129	23 in Indiana that:
130	130	24 (1) produces, refines, blends, compounds, or manufactures
131	131	25 motor fuel;
132	132	26 (2) imports motor fuel; or
133	133	27 (3) is engaged in distribution of motor fuel.
134	134	28 Sec. 6. As used in this chapter, "fueling station" means a retail
135	135	29 location within Indiana from which blended biodiesel is sold to the
136	136	30 public and is dispensed directly into the fuel tank of a customer's
137	137	31 motor vehicle.
138	138	32 Sec. 7. As used in this chapter, "metered pump" means a
139	139	33 stationary pump that is capable of metering the amount of
140	140	34 gasoline, special fuel, or blended biodiesel dispensed from it and
141	141	35 that is capable of simultaneously calculating and displaying the
142	142	36 price of the gasoline, special fuel, or blended biodiesel dispensed.
143	143	37 Sec. 8. As used in this chapter, "retail dealer" means a person,
144	144	38 corporation, limited liability company, partnership, or other entity
145	145	39 that owns or operates a fueling station.
146	146	40 Sec. 9. As used in this chapter, "state tax liability" means a
147	147	41 taxpayer's total tax liability that is incurred under IC 6-3-1
148	148	42 through IC 6-3-7 (the adjusted gross income tax) as computed after
149	149	2023 IN 1080—LS 6331/DI 129 4
150	150	1 the application of the credits that, under IC 6-3.1-1-2, are to be
151	151	2 applied before the credit provided by this chapter.
152	152	3 Sec. 10. As used in this chapter, "taxpayer" means a:
153	153	4 (1) retail dealer;
154	154	5 (2) distributor; or
155	155	6 (3) blender;
156	156	7 that has state tax liability.
157	157	8 Sec. 11. As used in this chapter, "terminal" has the meaning set
158	158	9 forth in IC 6-6-2.5-24.
159	159	10 Sec. 12. (a) A taxpayer is entitled to a credit against the
160	160	11 taxpayer's state tax liability for a taxable year if any of the
161	161	12 following apply:
162	162	13 (1) The taxpayer is a retail dealer that sells blended biodiesel
163	163	14 at a fueling station.
164	164	15 (2) The taxpayer is a distributor that sells blended biodiesel
165	165	16 directly to the final user located in Indiana.
166	166	17 (3) Subject to the limitation set forth in subsection (c), the
167	167	18 taxpayer is a blender that blends biodiesel at a terminal
168	168	19 located in Indiana.
169	169	20 (b) This subsection applies to the calculation of the amount of
170	170	21 the credit for a retail dealer or distributor. The amount of the
171	171	22 credit is equal to the following:
172	172	23 (1) Five cents ($0.05) per gallon of blended biodiesel of at least
173	173	24 five percent (5%) but not more than ten percent (10%) sold
174	174	25 by a:
175	175	26 (A) retail dealer through a metered pump at the retail
176	176	27 dealer's fueling station; or
177	177	28 (B) distributor directly to the final user located in Indiana;
178	178	29 during the taxable year for which the credit is claimed.
179	179	30 (2) Ten cents ($0.10) per gallon of blended biodiesel that is
180	180	31 more than ten percent (10%) but not more than twenty
181	181	32 percent (20%) sold by a:
182	182	33 (A) retail dealer through a metered pump at the retail
183	183	34 dealer's fueling station; or
184	184	35 (B) distributor directly to the final user located in Indiana;
185	185	36 during the taxable year for which the credit is claimed.
186	186	37 (3) Eighteen cents ($0.18) per gallon of blended biodiesel that
187	187	38 is more than twenty percent (20%) sold by a:
188	188	39 (A) retail dealer through a metered pump at the retail
189	189	40 dealer's fueling station; or
190	190	41 (B) distributor directly to the final user located in Indiana;
191	191	42 during the taxable year for which the credit is claimed.
192	192	2023 IN 1080—LS 6331/DI 129 5
193	193	1 (c) This subsection applies to the calculation of the amount of
194	194	2 the credit for a blender. The amount of the credit is equal to the
195	195	3 product of:
196	196	4 (1) three and one-half cents ($0.035); multiplied by
197	197	5 (2) the number of gallons of blended biodiesel that are
198	198	6 produced by blending biodiesel at a terminal located in
199	199	7 Indiana;
200	200	8 during the taxable year for which the credit is claimed. However,
201	201	9 the amount of the credit allowed under this subsection shall be
202	202	10 reduced by any subsidy that the taxpayer is entitled to receive from
203	203	11 the federal government for the taxpayer's production of blended
204	204	12 biodiesel.
205	205	13 (d) The credit must be used for the taxable year in which the
206	206	14 credit accrued.
207	207	15 Sec. 13. A taxpayer is not entitled to carryback any unused
208	208	16 credit.
209	209	17 Sec. 14. A taxpayer may not sell, assign, convey, or otherwise
210	210	18 transfer the credit provided by this chapter.
211	211	19 Sec. 15. If a pass through entity that qualifies for the credit does
212	212	20 not have state tax liability against which the credit may be applied,
213	213	21 a shareholder, partner, or member of the pass through entity may
214	214	22 claim a credit under this chapter equal to:
215	215	23 (1) the credit determined for the pass through entity under
216	216	24 this chapter for the taxable year; multiplied by
217	217	25 (2) the percentage of the pass through entity's distributive
218	218	26 income to which the shareholder, partner, or member is
219	219	27 entitled.
220	220	28 Sec. 16. If the amount of the tax credit exceeds the taxpayer's
221	221	29 state tax liability, the taxpayer is entitled to a refundable credit,
222	222	30 and the excess shall be refunded to the taxpayer.
223	223	31 Sec. 17. The total amount of tax credits that may be awarded
224	224	32 under this chapter for a state fiscal year may not exceed five
225	225	33 million dollars ($5,000,000). However, if the total amount of tax
226	226	34 credits exceeds the amount of available credits permitted by this
227	227	35 section, the credits shall be apportioned among taxpayers who
228	228	36 claim a credit before the taxpayer's due date for filing a return for
229	229	37 the taxable year.
230	230	38 Sec. 18. (a) To receive the credit provided by this chapter, a
231	231	39 taxpayer must claim the credit on the taxpayer's annual state tax
232	232	40 return in the manner prescribed by the department. The taxpayer
233	233	41 shall submit to the department all information that the department
234	234	42 determines is necessary for the calculation of the credit.
235	235	2023 IN 1080—LS 6331/DI 129 6
236	236	1 (b) The department may consult with the Indiana department
237	237	2 of health to validate that any blended biodiesel for which a
238	238	3 taxpayer claims a credit under this chapter contains a sufficient
239	239	4 percentage of biodiesel fuel.
240	240	5 Sec. 19. The department shall adopt rules under IC 4-22-2 to
241	241	6 implement this chapter.
242	242	7 Sec. 20. This chapter expires January 1, 2030.
243	243	8 SECTION 3. IC 6-6-2.5-1.5, AS ADDED BY P.L.122-2006,
244	244	9 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
245	245	10 JULY 1, 2023]: Sec. 1.5. (a) As used in this chapter, "biodiesel" means
246	246	11 a renewable, biodegradable, mono alkyl ester combustible liquid fuel
247	247	12 derived from agricultural plant oils or animal fats that meets American
248	248	13 Society for Testing and Materials specifications D6751-03a Standard
249	249	14 Specification for Biodiesel Fuel (B100) Blend Stock for Distillate
250	250	15 Fuels, as well as other fuels of the same derivation capable of use in the
251	251	16 generation of power for the propulsion of a motor vehicle, airplane, or
252	252	17 motorboat.
253	253	18 (b) As used in this chapter, "blended biodiesel" means a blend of
254	254	19 biodiesel with petroleum diesel fuel so that the volume percentage of
255	255	20 biodiesel in the blend is at least two percent (2%). A biodiesel blend
256	256	21 may be described as "Bxx" where "xx" represents the volume
257	257	22 percentage of biodiesel fuel. "B2" is the type of biodiesel blend with
258	258	23 the least volume percentage of biodiesel fuel, and "B99" is the type of
259	259	24 biodiesel fuel with the most volume percentage of biodiesel fuel. The
260	260	25 term does not include biodiesel (B100).
261	261	26 (c) As used in this chapter, "B99" means a blend of ninety-nine
262	262	27 percent (99%) biodiesel fuel that meets the most recent version of
263	263	28 the American Society for Testing and Materials International
264	264	29 D6751 Standard Specification for Biodiesel Fuel Blend Stock with
265	265	30 a minimum of one-tenth of one percent (0.1%) and maximum of
266	266	31 one percent (1%) diesel fuel that meets the most recent version of
267	267	32 the American Society for Testing and Materials International D975
268	268	33 Standard Specification for Diesel Fuel.
269	269	2023 IN 1080—LS 6331/DI 129