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.