093_HB2946

 
                                     LRB093 05028 SJM 05087 b

 1        AN ACT in relation to taxation.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Illinois Income Tax  Act  is  amended  by
 5    adding Sections 215 and 216 as follows:

 6        (35 ILCS 5/215 new)
 7        Sec.  215.  Tax credit for purchasing E85 ethanol-powered
 8    motor vehicle and  using  E85  blend  fuel.   Beginning  with
 9    taxable  years ending on or after December 31, 2003 and on or
10    before December 30, 2008, each taxpayer who purchases  a  new
11    E85  ethanol-powered  motor  vehicle  is entitled to a credit
12    against the tax imposed by subsections (a) and (b) of Section
13    201 in the following amounts:
14             (1)  For the taxable year of the purchase, $500  for
15        each vehicle purchased during the taxable year.
16             (2)  For  the year following the taxable year of the
17        purchase, $500 for each vehicle for which  a  credit  was
18        allowed under item (1), if the taxpayer verifies that the
19        taxpayer  purchased  at  least 1,000 gallons of E85 blend
20        fuel during the taxable year for each E85 ethanol-powered
21        motor vehicle for which a credit was allowed  under  item
22        (1).
23             (3)  For  the second year following the taxable year
24        of the purchase, $500 for each vehicle for which a credit
25        was allowed under item (1), if the taxpayer verifies that
26        the taxpayer purchased at  least  1,000  gallons  of  E85
27        blend   fuel   during  the  taxable  year  for  each  E85
28        ethanol-powered motor vehicle  for  which  a  credit  was
29        allowed under item (1).
30             (4)  For  the  third year following the taxable year
31        of the purchase, $500 for each vehicle for which a credit
 
                            -2-      LRB093 05028 SJM 05087 b
 1        was allowed under item (1), if the taxpayer verifies that
 2        the taxpayer purchased at  least  1,000  gallons  of  E85
 3        blend   fuel   during  the  taxable  year  for  each  E85
 4        ethanol-powered motor vehicle  for  which  a  credit  was
 5        allowed under item (1).
 6        For  purposes of this Section, "E85 ethanol-powered motor
 7    vehicle" means a motor vehicle that is powered by  E85  blend
 8    fuel  that  consists of at least 85% ethanol and no more than
 9    15% gasoline.  The tax credits under  this  Section  may  not
10    reduce  the  taxpayer's liability in any taxable year to less
11    than zero.

12        (35 ILCS 5/216 new)
13        Sec. 216.  Tax credit for  installing  E85  ethanol  fuel
14    dispensing  pumps.    For  taxable  years  ending on or after
15    December 31, 2003 and on or before December  30,  2008,  each
16    motor  fuel retailer who installs one or more new E85 ethanol
17    fuel dispensing pumps at his or her motor fuel  retail  store
18    in  Illinois  during the taxable year is entitled to a credit
19    against the tax imposed by subsections (a) and (b) of Section
20    201 in the amount of $10,000. For purposes  of  this  Section
21    "E85  ethanol  fuel  dispensing pump" means a fuel dispensing
22    pump that dispenses E85 blend fuel which consists of at least
23    85% ethanol and no more than 15% gasoline.   The  tax  credit
24    may not reduce the taxpayer's liability to less than zero.

25        Section  99.   Effective  date.  This Act takes effect on
26    January 1, 2004.