HB4210 94TH GENERAL ASSEMBLY

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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4210

Introduced 12/01/05, by Rep. William B. Black

SYNOPSIS AS INTRODUCED:

35 ILCS 5/216 new

Amends the Illinois Income Tax Act. Provides that each motor fuel retailer who installs one or more new E85 ethanol fuel dispensing tank and pump combinations at his or her motor fuel retail store in Illinois during State Fiscal Year 2007 is entitled to a an income tax credit in the amount of $700. Provides that a motor fuel retailer is entitled to only one credit per retail store location. Provides that the credit may not be carried forward or back and may not reduce the taxpayer's liability to less than zero. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

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 216 as follows:

(35 ILCS 5/216 new)

Sec. 216. Credit for installing E85 ethanol fuel dispensing tanks and pumps.

(a) Each motor fuel retailer who installs one or more new E85 ethanol fuel dispensing tank and pump combinations at his or her motor fuel retail store in Illinois during State Fiscal Year 2007 (July 1, 2006 through June 30, 2007) is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in the amount of $700. A motor fuel retailer is entitled to only one credit per retail store location.

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

(c) If the taxpayer is a partnership or Subchapter S corporation, the credit is allowed to the partners or shareholders 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.

(d) The credit may not be carried forward or back. In no event shall a credit under this Section reduce the taxpayer's liability to less than zero.

Section 99. Effective date. This Act takes effect upon becoming law.