HB1402 95TH GENERAL ASSEMBLY

LRB095 07005 BDD 27124 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB1402

Introduced 2/21/2007, by Rep. Roger L. Eddy

SYNOPSIS AS INTRODUCED:

35 ILCS 5/218 new
815 ILCS 365/5 new

Amends the Motor Fuel Sales Act. Requires that, no later than December 31, 2012, there must be installed, at each gasoline station or service station, one or more new E85 ethanol fuel dispensing pumps. Amends the Illinois Income Tax Act. Creates a tax credit, for taxable years ending on or after December 31, 2007 and on or before December 30, 2017, for taxpayers who install a new E85 ethanol fuel dispensing pump at a gasoline station or service station in Illinois during the taxable year in the amount equal to the cost of that installation. Provides that the credit: (i) may not exceed $80,000 per pump: (ii) may not be claimed in any one taxable year in an amount exceeding $20,000 per pump, but any excess amount may be carried forward; and (iii) may not be claimed with respect to the installation of more than one E85 ethanol fuel dispensing pump at any one station. Provides that the credit may be carried forward for 4 years. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning motor fuel.

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

Section 5. The Illinois Income Tax Act is amended by adding Section 218 as follows:

(35 ILCS 5/218 new)

Sec. 218. Tax credit for installing E85 ethanol fuel dispensing pumps.

(a) For taxable years ending on or after December 31, 2007 and on or before December 30, 2017, each taxpayer who installs a new E85 ethanol fuel dispensing pump at his or her gasoline station or service station in Illinois during the taxable year is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in the amount equal to the cost of that installation, but not to exceed $80,000 per pump and subject to the limitations set forth under subsection (b).

(b) The credit under this Section:

(1) may not be claimed in any one taxable year in an amount exceeding $20,000 per pump, but any amount exceeding $20,000 per pump may be carried forward under subsection (d); and

(2) at any one gasoline station or service station, may not be claimed with respect to the installation of more than one E85 ethanol fuel dispensing pump.

(c) For purposes of this Section "E85 ethanol fuel dispensing pump" means a fuel dispensing pump that dispenses E85 blend fuel which consists of at least 85% ethanol and no more than 15% gasoline.

(d) For partners, shareholders of Subchapter S corporations, and owners of limited liability companies, if the liability company is treated as a partnership for purposes of federal and State income taxation, there is allowed a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

(e) The credit may not be carried back. If the amount of the credit in any taxable year exceeds the lesser of (i) $20,000 or (ii) the tax liability for the year, then the excess may be carried forward and applied to the tax liability of the 4 taxable years following the excess credit year. The tax credit must be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit must be applied first.

Section 10. The Motor Fuel Sales Act is amended by adding Section 5 as follows:

(815 ILCS 365/5 new)

Sec. 5. E85 pump required. No later than December 31, 2012, there must be installed, at each gasoline station or service station to which this Act applies, one or more new E85 ethanol fuel dispensing pumps. For purposes of this Section "E85 ethanol fuel dispensing pump" means a fuel dispensing pump that dispenses E85 blend fuel, which consists of at least 85% ethanol and no more than 15% gasoline.

Section 99. Effective date. This Act takes effect January 1, 2008.