422.11O - E-85 GASOLINE PROMOTION TAX CREDIT.
422.11O E-85 GASOLINE PROMOTION TAX CREDIT. 1. As used in this section, unless the context otherwise requires: a. "E-85 gasoline", "ethanol", "gasoline", and "retail dealer" mean the same as defined in section 214A.1. b. "Motor fuel pump" means the same as defined in section 214.1. c. "Sell" means to sell on a retail basis. d. "Tax credit" means the E-85 gasoline promotion tax credit as provided in this section. 2. The taxes imposed under this division, less the credits allowed under section 422.12, shall be reduced by an E-85 gasoline promotion tax credit for each tax year that the taxpayer is eligible to claim the tax credit under this subsection. In order to be eligible, all of the following must apply: a. The taxpayer is a retail dealer who sells and dispenses E-85 gasoline through a motor fuel pump in the tax year in which the tax credit is claimed. b. The retail dealer complies with requirements of the department to administer this section. 3. For a retail dealer whose tax year is on a calendar year basis, the retail dealer shall calculate the amount of the tax credit by multiplying a designated rate by the retail dealer's total E-85 gasoline gallonage as provided in sections 452A.31 and 452A.32. The designated rate is as follows: a. For calendar year 2006, calendar year 2007, and calendar year 2008, twenty-five cents. b. For calendar year 2009 and calendar year 2010, twenty cents. c. For calendar year 2011, ten cents. d. For calendar year 2012, nine cents. e. For calendar year 2013, eight cents. f. For calendar year 2014, seven cents. g. For calendar year 2015, six cents. h. For calendar year 2016, five cents. i. For calendar year 2017, four cents. j. For calendar year 2018, three cents. k. For calendar year 2019, two cents. l. For calendar year 2020, one cent. 4. For a retail dealer whose tax year is not on a calendar year basis, the retail dealer shall calculate the tax credit as follows: a. If a retail dealer has not claimed a tax credit in the retail dealer's previous tax year, the retail dealer may claim the tax credit in the retail dealer's current tax year for that period beginning on January 1 of the retail dealer's previous tax year to the last day of the retail dealer's previous tax year. For that period the retail dealer shall calculate the tax credit in the same manner as a retail dealer who will calculate the tax credit on December 31 of that calendar year as provided in subsection 3. b. (1) For the period beginning on the first day of the retail dealer's tax year until December 31, the retail dealer shall calculate the tax credit in the same manner as a retail dealer who calculates the tax credit on that same December 31 as provided in subsection 3. (2) For the period beginning on January 1 to the end of the retail dealer's tax year, the retail dealer shall calculate the tax credit in the same manner as a retail dealer who will calculate the tax credit on the following December 31 as provided in subsection 3. 5. A retail dealer is eligible to claim an E-85 gasoline promotion tax credit as provided in this section even though the retail dealer claims an ethanol promotion tax credit pursuant to section 422.11N for the same tax year for the same ethanol gallonage. 6. Any credit in excess of the retail dealer's tax liability shall be refunded. In lieu of claiming a refund, the retail dealer may elect to have the overpayment shown on the retail dealer's final, completed return credited to the tax liability for the following tax year. 7. An individual may claim the tax credit allowed a partnership, limited liability company, S corporation, estate, or trust electing to have the income taxed directly to the individual. The amount claimed by the individual shall be based upon the pro rata share of the individual's earnings of a partnership, limited liability company, S corporation, estate, or trust. 8. This section is repealed on January 1, 2021.
Section History: Recent Form 2006 Acts, ch 1142, §40, 48, 49; 2006 Acts, ch 1175, §15, 23; 2007 Acts, ch 126, §67; 2007 Acts, ch 161, §16, 22 Referred to in § 422.5, 422.11N, 422.16, 422.33
Footnotes Section applies retroactively to tax years beginning on or after January 1, 2006; 2006 Acts, ch 1142, §48 For provisions relating to availability and calculation of an E-85 gasoline promotion tax credit in calendar year 2020 for a retail dealer whose tax year ends prior to December 31, 2020, see 2006 Acts, ch 1142, §49 2007 amendment to subsection 2, unnumbered paragraph 1, takes effect May 15, 2007, and applies retroactively to January 1, 2007, for tax years beginning on or after that date; 2007 Acts, ch 161, §22