Reprinted

January 31, 2006





HOUSE BILL No. 1332

_____


DIGEST OF HB 1332 (Updated January 30, 2006 10:07 pm - DI 71)



Citations Affected: IC 6-3.1; IC 13-17; noncode.

Synopsis: Alternative fuel production and use. Increases the maximum amount of credits that may be granted for biodiesel production, biodiesel blending, and ethanol production. Specifies the maximum amount of a credit that a taxpayer may claim based upon the amount of biodiesel, blended biodiesel, or ethanol produced by the taxpayer. Prohibits the air pollution control board from adopting rules regulating emissions from outdoor furnaces and boilers.

Effective: Upon passage; January 1, 2005 (retroactive); January 1, 2006 (retroactive).





Friend , Lutz J , Koch, Heim




    January 10, 2006, read first time and referred to Committee on Utilities and Energy.
    January 19, 2006, amended, reported _ Do Pass. Referred to Committee on Ways and Means pursuant to House Rule 127.
    January 26, 2006, amended, reported _ Do Pass.
    January 30, 2006, read second time, amended, ordered engrossed.





Reprinted

January 31, 2006

Second Regular Session 114th General Assembly (2006)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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HOUSE BILL No. 1332



    A BILL FOR AN ACT to amend the Indiana Code concerning the environment.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-3.1-27-8; (06)HB1332.3.1. -->     SECTION 1. IC 6-3.1-27-8, AS AMENDED BY P.L.191-2005, SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2006 (RETROACTIVE)]: Sec. 8. (a) Subject to section 9.5 of this chapter, a taxpayer that has been certified by the corporation as eligible for a credit under this section and produces biodiesel at a facility located in Indiana is entitled to a credit against the taxpayer's state tax liability equal to the product of:
        (1) one dollar ($1); multiplied by
        (2) the number of gallons of biodiesel:
            (A) produced at the Indiana facility during the taxable year; and
            (B) used to produce blended biodiesel.
    (b) The total amount of credits allowed a taxpayer (or, if the person producing the biodiesel is a pass through entity, the shareholders, partners, or members of the pass through entity) under this section may not exceed three million dollars ($3,000,000) the following amounts for all taxable years:
         (1) One million dollars ($1,000,000) in the case of a taxpayer who produces less than thirty million (30,000,000) gallons of biodiesel in a taxable year.
        (2) Two million dollars ($2,000,000) in the case of a taxpayer who produces at least thirty million (30,000,000) but less than sixty million (60,000,000) gallons of biodiesel in a taxable year.
        (3) Three million dollars ($3,000,000) in the case of a taxpayer who produces at least sixty million (60,000,000) gallons of biodiesel in a taxable year.

    (c) Notwithstanding subsection (b), the total amount of credits allowed a taxpayer (or if the person producing biodiesel is a pass through entity, the shareholders, partners, or members of the pass through entity) may be increased to an amount not to exceed a total of five million dollars ($5,000,000) for all taxable years with the prior approval of the Indiana economic development corporation.
SOURCE: IC 6-3.1-27-9; (06)HB1332.3.2. -->     SECTION 2. IC 6-3.1-27-9, AS AMENDED BY P.L.191-2005, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2006 (RETROACTIVE)]: Sec. 9. (a) Subject to section 9.5 of this chapter, a taxpayer that has been certified by the corporation as eligible for a credit under this section and produces blended biodiesel at a facility located in Indiana is entitled to a credit against the taxpayer's state tax liability equal to the product of:
        (1) two cents ($0.02); multiplied by
        (2) the number of gallons of blended biodiesel:
            (A) produced at the Indiana facility; and
            (B) blended with biodiesel produced at a facility located in Indiana.
    (b) The total amount of credits allowed a taxpayer (or, if the person producing the blended biodiesel is a pass through entity, the shareholders, partners, or members of the pass through entity) under this section may not exceed three million dollars ($3,000,000) the following amounts for all taxable years:
        (1) One million dollars ($1,000,000) in the case of a taxpayer who produces less than thirty million (30,000,000) gallons of blended biodiesel in a taxable year.
        (2) Two million dollars ($2,000,000) in the case of a taxpayer who produces at least thirty million (30,000,000) but less than sixty million (60,000,000) gallons of blended biodiesel in a taxable year.
        (3) Three million dollars ($3,000,000) in the case of a taxpayer who produces at least sixty million (60,000,000) gallons of blended biodiesel in a taxable year.

SOURCE: IC 6-3.1-27-9.5; (06)HB1332.3.3. -->     SECTION 3. IC 6-3.1-27-9.5, AS ADDED BY P.L.191-2005, SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]: Sec. 9.5. The total amount of credits allowed under:
        (1) section 8 of this chapter;
        (2) section 9 of this chapter; and
        (3) IC 6-3.1-28;
may not exceed twenty fifty million dollars ($20,000,000) ($50,000,000) for all taxpayers and all taxable years beginning after December 31, 2004. The corporation shall determine the maximum allowable amount for each type of credit, which must be at least four million dollars ($4,000,000) for each type of credit.
SOURCE: IC 6-3.1-28-11; (06)HB1332.3.4. -->     SECTION 4. IC 6-3.1-28-11, AS AMENDED BY P.L.191-2005, SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2006 (RETROACTIVE)]: Sec. 11. (a) The total amount of credits allowed a taxpayer (or, if the person producing the ethanol is a pass through entity, the shareholders, partners, or members of the pass through entity) under this chapter may not exceed a total of three million dollars ($3,000,000) the following amounts for all taxable years:
        (1) Two million dollars ($2,000,000) in the case of a taxpayer who produces at least forty million (40,000,000) but less than sixty million (60,000,000) gallons of ethanol in a taxable year.
        (2) Three million dollars ($3,000,000) in the case of a taxpayer who produces at least sixty million (60,000,000) gallons of ethanol in a taxable year.

    (b) Notwithstanding subsection (a), the total amount of credits allowed a taxpayer (or if the person producing ethanol is a pass through entity, the shareholders, partners, or members of the pass through entity) may be increased to an amount not to exceed a total of five million dollars ($5,000,000) for all taxable years with the prior approval of the Indiana economic development corporation.
SOURCE: IC 13-17-3-16; (06)HB1332.3.5. -->     SECTION 5. IC 13-17-3-16 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 16. (a) As used in this section, "outdoor furnace or boiler" means a device that:
        (1) is located outside a residence or other building that has not more than twenty thousand (20,000) square feet of floor space;
        (2) uses wood as a primary fuel to heat air or water; and
        (3) pumps the heated air or water back into the residence or other building for heating purposes.
    (b) The board may not adopt rules that regulate emissions from outdoor furnaces or boilers.

SOURCE: ; (06)HB1332.3.6. -->     SECTION 6. [EFFECTIVE JANUARY 1, 2006 (RETROACTIVE)] IC 6-3.1-27 and IC 6-3.1-28, both as amended by this act, apply to taxable years beginning after December 31, 2005.
SOURCE: ; (06)HB1332.3.7. -->     SECTION 7. An emergency is declared for this act.