Indiana 2025 Regular Session

Indiana House Bill HB1127 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. 1127
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 or
9	9	renewable diesel; and (B) blending of biodiesel or renewable diesel.
10	10	Provides that the amount of the higher ethanol blend tax credit is $0.05
11	11	per gallon of higher ethanol blend sold at the taxpayer's fueling station.
12	12	Provides that the total amount of higher ethanol blend tax credits that
13	13	may be awarded for a state fiscal year may not exceed $10,000,000.
14	14	Provides that the amount of the tax credit for blended biodiesel or
15	15	renewable diesel is computed as follows: (1) $0.05 per gallon of
16	16	blended biodiesel or renewable diesel of at least 5% but not more than
17	17	10%: (A) sold at the taxpayer's fueling station; or (B) sold by a
18	18	distributor directly to the final user. (2) $0.10 per gallon of blended
19	19	biodiesel or renewable diesel that is more than 10% but not more than
20	20	20%: (A) sold at the taxpayer's fueling station; or (B) sold by a
21	21	distributor directly to the final user. (3) $0.18 per gallon of blended
22	22	biodiesel or renewable diesel that is more than 20%: (A) sold at the
23	23	taxpayer's fueling station; or (B) sold by a distributor directly to the
24	24	final user. (4) For a person who blends biodiesel or renewable diesel
25	25	the product of: (A) $0.035; multiplied by (B) the number of gallons of
26	26	blended biodiesel or renewable diesel that is more than 5% and
27	27	produced by blending biodiesel or renewable diesel at a terminal
28	28	located in Indiana. Provides that the tax credit for blended biodiesel or
29	29	renewable diesel is refundable. Provides that the total amount of
30	30	blended biodiesel or renewable diesel tax credits that may be awarded
31	31	for a state fiscal year may not exceed $5,000,000.
32	32	Effective: July 1, 2025.
33	33	Heine
34	34	January 8, 2025, read first time and referred to Committee on Ways and Means.
35	35	2025 IN 1127—LS 6617/DI 129 Introduced
36	36	First Regular Session of the 124th General Assembly (2025)
37	37	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
38	38	Constitution) is being amended, the text of the existing provision will appear in this style type,
39	39	additions will appear in this style type, and deletions will appear in this style type.
40	40	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
41	41	provision adopted), the text of the new provision will appear in this style type. Also, the
42	42	word NEW will appear in that style type in the introductory clause of each SECTION that adds
43	43	a new provision to the Indiana Code or the Indiana Constitution.
44	44	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
45	45	between statutes enacted by the 2024 Regular Session of the General Assembly.
46	46	HOUSE BILL No. 1127
47	47	A BILL FOR AN ACT to amend the Indiana Code concerning
48	48	taxation.
49	49	Be it enacted by the General Assembly of the State of Indiana:
50	50	1 SECTION 1. IC 6-3.1-41.1 IS ADDED TO THE INDIANA CODE
51	51	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
52	52	3 JULY 1, 2025]:
53	53	4 Chapter 41.1. Higher Ethanol Blend Tax Credit
54	54	5 Sec. 1. This chapter applies to taxable years beginning after
55	55	6 December 31, 2025.
56	56	7 Sec. 2. As used in this chapter, "fueling station" means a retail
57	57	8 location within Indiana from which higher ethanol blend is sold to
58	58	9 the public and is dispensed directly into the fuel tank of a
59	59	10 customer's motor vehicle.
60	60	11 Sec. 3. As used in this chapter, "higher ethanol blend" means an
61	61	12 ethanol blend that is at least fifteen percent (15%) but not more
62	62	13 than eighty-five percent (85%) ethanol and is dispensed directly
63	63	14 into the fuel tank of a motor vehicle.
64	64	15 Sec. 4. As used in this chapter, "metered pump" means a
65	65	16 stationary pump that is capable of metering the amount of
66	66	17 gasoline, special fuel, or higher ethanol blend dispensed from it and
67	67	2025 IN 1127—LS 6617/DI 129 2
68	68	1 that is capable of simultaneously calculating and displaying the
69	69	2 price of the gasoline, special fuel, or higher ethanol blend
70	70	3 dispensed.
71	71	4 Sec. 5. As used in this chapter, "state tax liability" means a
72	72	5 taxpayer's total tax liability that is incurred under IC 6-3-1
73	73	6 through IC 6-3-7 (the adjusted gross income tax) as computed after
74	74	7 the application of the credits that, under IC 6-3.1-1-2, are to be
75	75	8 applied before the credit provided by this chapter.
76	76	9 Sec. 6. As used in this chapter, "taxpayer" means any person,
77	77	10 corporation, limited liability company, partnership, or other entity
78	78	11 that:
79	79	12 (1) owns a fueling station;
80	80	13 (2) sells higher ethanol blend at the fueling station; and
81	81	14 (3) has state tax liability.
82	82	15 Sec. 7. A taxpayer is entitled to a credit against the taxpayer's
83	83	16 state tax liability for higher ethanol blend sold at the taxpayer's
84	84	17 fueling station during a particular taxable year. The amount of the
85	85	18 credit provided by this chapter equals five cents ($0.05) per gallon
86	86	19 of higher ethanol blend that the retail dealer sells and dispenses
87	87	20 through a metered pump at the taxpayer's fueling station during
88	88	21 the taxable year.
89	89	22 Sec. 8. (a) The credit must be used for the taxable year in which
90	90	23 the credit accrued. However, if the amount of the credit
91	91	24 determined under this chapter for a taxpayer's taxable year
92	92	25 exceeds the taxpayer's state tax liability for that taxable year, the
93	93	26 taxpayer may carry over the excess to the following taxable years.
94	94	27 The amount of the credit carryover from a taxable year must be
95	95	28 reduced to the extent that the carryover is used by the taxpayer to
96	96	29 obtain a credit under this chapter for any subsequent year. A
97	97	30 credit may not be carried forward for more than three (3) taxable
98	98	31 years following the taxable year in which the taxpayer is first
99	99	32 entitled to claim the credit.
100	100	33 (b) A taxpayer is not entitled to a carryback or refund of any
101	101	34 unused credit.
102	102	35 (c) A taxpayer may not sell, assign, convey, or otherwise
103	103	36 transfer the credit provided by this chapter.
104	104	37 Sec. 9. If a pass through entity that qualifies for the credit does
105	105	38 not have state tax liability against which the credit may be applied,
106	106	39 a shareholder, partner, or member of the pass through entity may
107	107	40 claim a credit under this chapter equal to:
108	108	41 (1) the credit determined for the pass through entity under
109	109	42 this chapter for the taxable year; multiplied by
110	110	2025 IN 1127—LS 6617/DI 129 3
111	111	1 (2) the percentage of the pass through entity's distributive
112	112	2 income to which the shareholder, partner, or member is
113	113	3 entitled.
114	114	4 Sec. 10. The total amount of tax credits that may be awarded
115	115	5 under this chapter for a state fiscal year may not exceed ten million
116	116	6 dollars ($10,000,000).
117	117	7 Sec. 11. This chapter expires January 1, 2032.
118	118	8 SECTION 2. IC 6-3.1-41.3 IS ADDED TO THE INDIANA CODE
119	119	9 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
120	120	10 JULY 1, 2025]:
121	121	11 Chapter 41.3. Biodiesel Tax Credit
122	122	12 Sec. 1. This chapter applies to taxable years beginning after
123	123	13 December 31, 2025.
124	124	14 Sec. 2. As used in this chapter, "biodiesel" has the meaning set
125	125	15 forth in IC 6-6-2.5-1.5(a).
126	126	16 Sec. 3. As used in this chapter, "blended biodiesel" has the
127	127	17 meaning set forth in IC 6-6-2.5-1.5(b).
128	128	18 Sec. 4. As used in this chapter, "blender" means a person,
129	129	19 corporation, limited liability company, partnership, or other entity
130	130	20 that:
131	131	21 (1) produces, refines, compounds, or manufactures motor
132	132	22 fuel; or
133	133	23 (2) blends biodiesel or renewable diesel;
134	134	24 at a terminal located in Indiana.
135	135	25 Sec. 5. As used in this chapter, "distributor" means a person,
136	136	26 corporation, limited liability company, partnership, or other entity
137	137	27 in Indiana that:
138	138	28 (1) imports motor fuel; or
139	139	29 (2) is engaged in distribution of motor fuel.
140	140	30 Sec. 6. As used in this chapter, "fueling station" means a retail
141	141	31 location within Indiana from which blended biodiesel or renewable
142	142	32 diesel is sold to the public and is dispensed directly into the fuel
143	143	33 tank of a customer's motor vehicle.
144	144	34 Sec. 7. As used in this chapter, "metered pump" means a
145	145	35 stationary pump that is capable of:
146	146	36 (1) metering the amount of gasoline, special fuel, blended
147	147	37 biodiesel, or renewable diesel dispensed from it; and
148	148	38 (2) simultaneously calculating and displaying the price of the
149	149	39 gasoline, special fuel, blended biodiesel, or renewable diesel
150	150	40 dispensed.
151	151	41 Sec. 8. As used in this chapter, "renewable diesel" means
152	152	42 hydrocarbon fuel derived from biomass meeting the requirements
153	153	2025 IN 1127—LS 6617/DI 129 4
154	154	1 of the most recent version of the American Society for Testing and
155	155	2 Materials standard D975 or D396. A fuel that has been coprocessed
156	156	3 or blended is not considered renewable diesel unless the biomass
157	157	4 derived portion of the coprocessed renewable diesel can be verified
158	158	5 using the most recent version of the American Society for Testing
159	159	6 and Materials standard D6866.
160	160	7 Sec. 9. As used in this chapter, "retail dealer" means a person,
161	161	8 corporation, limited liability company, partnership, or other entity
162	162	9 that owns or operates a fueling station.
163	163	10 Sec. 10. As used in this chapter, "state tax liability" means a
164	164	11 taxpayer's total tax liability that is incurred under IC 6-3-1
165	165	12 through IC 6-3-7 (the adjusted gross income tax) as computed after
166	166	13 the application of the credits that, under IC 6-3.1-1-2, are to be
167	167	14 applied before the credit provided by this chapter.
168	168	15 Sec. 11. As used in this chapter, "taxpayer" means a:
169	169	16 (1) retail dealer;
170	170	17 (2) distributor; or
171	171	18 (3) blender;
172	172	19 that has state tax liability.
173	173	20 Sec. 12. As used in this chapter, "terminal" has the meaning set
174	174	21 forth in IC 6-6-2.5-24.
175	175	22 Sec. 13. (a) A taxpayer is entitled to a credit against the
176	176	23 taxpayer's state tax liability for a taxable year if any of the
177	177	24 following apply:
178	178	25 (1) The taxpayer is a retail dealer that sells blended biodiesel
179	179	26 or renewable diesel at a fueling station.
180	180	27 (2) The taxpayer is a distributor that sells blended biodiesel or
181	181	28 renewable diesel directly to the final user located in Indiana.
182	182	29 (3) The taxpayer is a blender that blends biodiesel or
183	183	30 renewable diesel at a terminal located in Indiana.
184	184	31 (b) This subsection applies to the calculation of the amount of
185	185	32 the credit for a retail dealer or distributor. The amount of the
186	186	33 credit is equal to the following:
187	187	34 (1) Five cents ($0.05) per gallon of blended biodiesel or
188	188	35 renewable diesel of at least five percent (5%) but not more
189	189	36 than ten percent (10%) sold by a:
190	190	37 (A) retail dealer through a metered pump at the retail
191	191	38 dealer's fueling station; or
192	192	39 (B) distributor directly to the final user located in Indiana;
193	193	40 during the taxable year for which the credit is claimed.
194	194	41 (2) Ten cents ($0.10) per gallon of blended biodiesel or
195	195	42 renewable diesel that is more than ten percent (10%) but not
196	196	2025 IN 1127—LS 6617/DI 129 5
197	197	1 more than twenty percent (20%) sold by a:
198	198	2 (A) retail dealer through a metered pump at the retail
199	199	3 dealer's fueling station; or
200	200	4 (B) distributor directly to the final user located in Indiana;
201	201	5 during the taxable year for which the credit is claimed.
202	202	6 (3) Eighteen cents ($0.18) per gallon of blended biodiesel or
203	203	7 renewable diesel that is more than twenty percent (20%) sold
204	204	8 by a:
205	205	9 (A) retail dealer through a metered pump at the retail
206	206	10 dealer's fueling station; or
207	207	11 (B) distributor directly to the final user located in Indiana;
208	208	12 during the taxable year for which the credit is claimed.
209	209	13 (c) This subsection applies to the calculation of the amount of
210	210	14 the credit for a blender. The amount of the credit is equal to the
211	211	15 product of:
212	212	16 (1) three and one-half cents ($0.035); multiplied by
213	213	17 (2) the number of gallons of blended biodiesel or renewable
214	214	18 diesel that is:
215	215	19 (A) more than five percent (5%); and
216	216	20 (B) produced by blending biodiesel or renewable diesel at
217	217	21 a terminal located in Indiana;
218	218	22 during the taxable year for which the credit is claimed.
219	219	23 (d) The credit must be used for the taxable year in which the
220	220	24 credit accrued.
221	221	25 Sec. 14. A taxpayer is not entitled to carryback any unused
222	222	26 credit.
223	223	27 Sec. 15. A taxpayer may not sell, assign, convey, or otherwise
224	224	28 transfer the credit provided by this chapter.
225	225	29 Sec. 16. If a pass through entity that qualifies for the credit does
226	226	30 not have state tax liability against which the credit may be applied,
227	227	31 a shareholder, partner, or member of the pass through entity may
228	228	32 claim a credit under this chapter equal to:
229	229	33 (1) the credit determined for the pass through entity under
230	230	34 this chapter for the taxable year; multiplied by
231	231	35 (2) the percentage of the pass through entity's distributive
232	232	36 income to which the shareholder, partner, or member is
233	233	37 entitled.
234	234	38 Sec. 17. If the amount of the tax credit exceeds the taxpayer's
235	235	39 state tax liability, the taxpayer is entitled to a refundable credit,
236	236	40 and the excess shall be refunded to the taxpayer.
237	237	41 Sec. 18. The total amount of tax credits that may be awarded
238	238	42 under this chapter for a state fiscal year may not exceed five
239	239	2025 IN 1127—LS 6617/DI 129 6
240	240	1 million dollars ($5,000,000). However, if the total amount of tax
241	241	2 credits exceeds the amount of available credits permitted by this
242	242	3 section, the credits shall be apportioned among taxpayers that
243	243	4 claim a credit before the taxpayer's due date for filing a return for
244	244	5 the taxable year.
245	245	6 Sec. 19. (a) To receive the credit provided by this chapter, a
246	246	7 taxpayer must claim the credit on the taxpayer's annual state tax
247	247	8 return in the manner prescribed by the department. The taxpayer
248	248	9 shall submit to the department all information that the department
249	249	10 determines is necessary for the calculation of the credit.
250	250	11 (b) The department may consult with the Indiana department
251	251	12 of health to validate that any blended biodiesel or renewable diesel
252	252	13 for which a taxpayer claims a credit under this chapter contains a
253	253	14 sufficient percentage of biodiesel or renewable diesel fuel.
254	254	15 Sec. 20. This chapter expires January 1, 2032.
255	255	16 SECTION 3. IC 6-6-2.5-1.5, AS ADDED BY P.L.122-2006,
256	256	17 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
257	257	18 JULY 1, 2025]: Sec. 1.5. (a) As used in this chapter, "biodiesel" means
258	258	19 a renewable, biodegradable, mono alkyl ester combustible liquid fuel
259	259	20 derived from agricultural plant oils or animal fats that meets the most
260	260	21 recent American Society for Testing and Materials specifications
261	261	22 D6751-03a D6751 Standard Specification for Biodiesel Fuel (B100)
262	262	23 Blend Stock for Distillate Fuels, as well as other fuels of the same
263	263	24 derivation capable of use in the generation of power for the propulsion
264	264	25 of a motor vehicle, airplane, or motorboat.
265	265	26 (b) As used in this chapter, "blended biodiesel" means a blend of
266	266	27 biodiesel with petroleum diesel fuel so that the volume percentage of
267	267	28 biodiesel in the blend is at least two percent (2%). A biodiesel blend
268	268	29 may be described as "Bxx" where "xx" represents the volume
269	269	30 percentage of biodiesel fuel. "B2" is the type of biodiesel blend with
270	270	31 the least volume percentage of biodiesel fuel, and "B99" is the type of
271	271	32 biodiesel fuel with the most volume percentage of biodiesel fuel. The
272	272	33 term does not include biodiesel (B100).
273	273	34 (c) As used in this chapter, "B99" means a blend of ninety-nine
274	274	35 percent (99%) biodiesel fuel that meets the most recent version of
275	275	36 the American Society for Testing and Materials International
276	276	37 D6751 Standard Specification for Biodiesel Fuel Blend Stock with
277	277	38 a minimum of one-tenth of one percent (0.1%) and maximum of
278	278	39 one percent (1%) diesel fuel that meets the most recent version of
279	279	40 the American Society for Testing and Materials International D975
280	280	41 or D7467 Standard Specification for Diesel Fuel.
281	281	2025 IN 1127—LS 6617/DI 129