HB6959 93RD GENERAL ASSEMBLY

LRB093 17827 SJM 43508 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB6959

Introduced 02/09/04, by William B. Black - Patricia Reid Lindner - Sidney H. Mathias - Ronald A. Wait - Raymond Poe, et al.

SYNOPSIS AS INTRODUCED:

35 ILCS 5/216 new
35 ILCS 5/217 new

Amends the Illinois Income Tax Act. Creates a $2,000 tax credit for each taxpayer who purchases a new E85 ethanol powered motor vehicle for each vehicle purchased during the taxable year. Creates a $10,000 tax credit for each motor fuel retailer who installs one or more new E85 ethanol fuel dispensing pumps at his or her motor fuel retail store in Illinois during the taxable year. Provides that each of the credits applies to taxable years ending on or after December 31, 2004 and on or before December 30, 2009. Provides that the credits may not reduce the taxpayer's liability to less than zero. Effective January 1, 2005.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT in relation to taxation.

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 Sections 216 and 217 as follows:

(35 ILCS 5/216 new)

Sec. 216. Tax credit for purchasing E85 ethanol-powered motor vehicle and using E85 blend fuel. Beginning with taxable years ending on or after December 31, 2004 and on or before December 30, 2009, each taxpayer who purchases a new E85 ethanol-powered motor vehicle is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in the following amounts:

(1) For the taxable year of the purchase, $500 for each vehicle purchased during the taxable year.

(2) For the year following the taxable year of the purchase, $500 for each vehicle for which a credit was allowed under item (1), if the taxpayer verifies that the taxpayer purchased at least 1,000 gallons of E85 blend fuel during the taxable year for each E85 ethanol-powered motor vehicle for which a credit was allowed under item (1).

(3) For the second year following the taxable year of the purchase, $500 for each vehicle for which a credit was allowed under item (1), if the taxpayer verifies that the taxpayer purchased at least 1,000 gallons of E85 blend fuel during the taxable year for each E85 ethanol-powered motor vehicle for which a credit was allowed under item (1).

(4) For the third year following the taxable year of the purchase, $500 for each vehicle for which a credit was allowed under item (1), if the taxpayer verifies that the taxpayer purchased at least 1,000 gallons of E85 blend fuel during the taxable year for each E85 ethanol-powered motor vehicle for which a credit was allowed under item (1).

For purposes of this Section, "E85 ethanol-powered motor vehicle" means a motor vehicle that is powered by E85 blend fuel that consists of at least 85% ethanol and no more than 15% gasoline. The tax credits under this Section may not reduce the taxpayer's liability in any taxable year to less than zero.

(35 ILCS 5/217 new)

Sec. 217. Tax credit for installing E85 ethanol fuel dispensing pumps. For taxable years ending on or after December 31, 2004 and on or before December 30, 2009, each motor fuel retailer who installs one or more new E85 ethanol fuel dispensing pumps at his or her motor fuel retail store 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 of $10,000. 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. The tax credit may not reduce the taxpayer's liability to less than zero.

Section 99. Effective date. This Act takes effect January 1, 2005