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Synopsis As Introduced Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Extends the partial exemption from the taxes imposed by these Acts on gasohol to December 31, 2013 (now ends on July 1, 2003), gradually reducing the partial exemption to zero after December 31, 2013. Partially exempts E85 blend fuel and bio-diesel blend fuel in the same amount and according to the same schedule as gasohol. Provides that if, at any time, the tax under these Acts on gasohol, E85 blend fuel, and bio-diesel blend fuel is imposed at 1.25%, then the partial exemption of the tax on those items does not apply during that time. Effective immediately.
Fiscal Note (Department of Revenue)
Because the incentive on gasohol will be slightly reduced, we believe that this will cover the cost of the new incentives for other biomass fuels, which would make this legislation revenue neutral.
Fiscal Note (Department of Transportation)
No impact on the federal highway funds coming to Illinois.
Deletes everything after the enacting clause. Reinserts the provisions of the bill as introduced with some changes, including changes in the percentage of proceeds exempt from taxation. Replaces the definition of "bio-diesel blend fuel" with definitions for "biodiesel" and "biodiesel blends" and replaces the definition for "E85 blend fuel" with "majority blended ethanol fuel". Provides for certain exemptions for gasohol, majority blended ethanol, 100% biodiesel, and biodiesel blends. Amends the Motor Fuel Tax Law to provide that "diesel fuel" is any fuel (now, petroleum product) intended for use or offered for sale as a fuel for engines in which the fuel is injected into the combustion chamber and ignited by pressure without electric spark. Provides that the changes made by this amendatory Act take effect if and only if both Senate Bill 1212 and House Bill 46 of the 93rd General Assembly become Law. Effective immediately.
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