SB 378-2_ Filed 03/21/2005, 11:19 Crooks


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    PREVAILED      Roll Call No. _______
    FAILED        Ayes _______
    WITHDRAWN        Noes _______
    RULED OUT OF ORDER


[

HOUSE MOTION ____

]

MR. SPEAKER:

    I move that Engrossed Senate Bill 378 be amended to read as follows:

SOURCE: Page 12, line 20; (05)MO037805.12. -->     Page 12, between lines 20 and 21, begin a new paragraph and insert:
SOURCE: IC 6-3.1-30; (05)MO037805.16. -->     "SECTION 16. IC 6-3.1-30 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2006]:
     Chapter 30. Ethanol Powered Motor Vehicle Tax Credit
    Sec. 1. As used in this chapter, "ethanol" means agriculturally derived ethyl alcohol.
    Sec. 2. As used in this chapter, "E85 ethanol powered motor vehicle" means a motor vehicle that is powered by E85 blend fuel that consists of at least eighty-five percent (85%) ethanol and not more than fifteen percent (15%) gasoline.
    Sec. 3. As used in this chapter, "motor vehicle" has the meaning set forth in IC 6-6-1.1-103.
    Sec. 4. As used in this chapter, "pass through entity" means:
        (1) a corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8(2);
        (2) a partnership;
        (3) a limited liability company; or
        (4) a limited liability partnership.
    Sec. 5. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:
        (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
        (2) IC 6-5.5 (the financial institutions tax); and
        (3) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of the credits that under

IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.
    Sec. 6. As used in this chapter, "taxpayer" means an individual or entity that has any state tax liability.
    Sec. 7. A taxpayer who purchases an E85 powered motor vehicle is entitled to a credit against the taxpayer's state tax liability in the taxable year of the purchase equal to five hundred dollars ($500).
    Sec. 8. If a pass through entity is entitled to a credit under this chapter but does not have state tax liability against which the tax credit may be applied, a shareholder, partner, or member of the pass through entity is entitled to a tax credit equal to:
        (1) the tax credit determined for the pass through entity for the taxable year; multiplied by
        (2) the percentage of the pass through entity's distributive income to which the shareholder, partner, or member is entitled.
    Sec. 9. (a) If the amount of the credit determined under section 7 of this chapter for a taxpayer in a taxable year exceeds the taxpayer's state tax liability for that taxable year, the taxpayer may carry over the excess to the following taxable years. The amount of the credit carryover from a taxable year shall be reduced to the extent that the carryover is used by the taxpayer to obtain a credit under this chapter for any subsequent taxable year.
    (b) A taxpayer is not entitled to a carryback or refund of any unused credit.
    Sec. 10. To receive the credit provided by this chapter, a taxpayer must claim the credit on the taxpayer's annual state tax return or returns in the manner prescribed by the department. The taxpayer shall submit to the department proof of the taxpayer's purchase of an E85 powered motor vehicle and any other information required by the department.

SOURCE: IC 6-3.1-31; (05)MO037805.17. -->     SECTION 17. IC 6-3.1-31 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2006]:
     Chapter 31. Tax Credit for the Installation of an E85 Fuel Pump
    Sec. 1. As used in this chapter, "ethanol" means agriculturally derived ethyl alcohol.
    Sec. 2. As used in this chapter, "E85 ethanol fuel dispensing pump" means a fuel dispensing pump that dispenses E85 blend fuel that consists of at least eighty-five percent (85%) ethanol and not more than fifteen percent (15%) gasoline.
    Sec. 3. As used in this chapter, "pass through entity" means:
        (1) a corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8(2);
        (2) a partnership;
        (3) a limited liability company; or
        (4) a limited liability partnership.
    Sec. 4. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:
        (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
        (2) IC 6-5.5 (the financial institutions tax); and
        (3) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of the credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.
    Sec. 5. As used in this chapter, "taxpayer" means an individual or entity that:
        (1) has any state tax liability; and
        (2) is engaged in the business of selling motor fuel at retail.
    Sec. 6. A taxpayer who installs an E85 ethanol fuel dispensing pump is entitled to a credit against the taxpayer's state tax liability in the taxable year that the taxpayer installs the E85 ethanol fuel dispensing pump equal to the lesser of:
        (1) ten thousand dollars ($10,000); or
        (2) the taxpayer's state tax liability for the taxable year.
    Sec. 7. If a pass through entity is entitled to a credit under this chapter but does not have state tax liability against which the tax credit may be applied, a shareholder, partner, or member of the pass through entity is entitled to a tax credit equal to:
        (1) the tax credit determined for the pass through entity for the taxable year; multiplied by
        (2) the percentage of the pass through entity's distributive income to which the shareholder, partner, or member is entitled.
    Sec. 8. A taxpayer is not entitled to a carryover, carryback or refund of any unused credit.
    Sec. 9. To receive the credit provided by this chapter, a taxpayer must claim the credit on the taxpayer's annual state tax return or returns in the manner prescribed by the department. The taxpayer shall submit to the department proof of the taxpayer's installation
of an E85 ethanol fuel dispensing pump and any other information required by the department.
".
    Renumber all SECTIONS consecutively.
    (Reference is to ESB 378 as printed March 18, 2005.)

________________________________________

Representative Crooks


MO037805/DI 92     2005