Ethanol Subsidization Act of 2022
To subsidize ethanol production across the Republic.
Be it enacted by the Congress of the Republic of Atlasia as follows:
Section 1. Purpose and definitions
A. For the purposes of this section, the following terms shall mean:
(1) "Department", the Congress
(2) "Higher ethanol blend", a fuel capable of being dispensed directly into motor vehicle fuel tanks for consumption that is comprised of at least fifteen percent but not more than eighty-five percent ethanol;
(3) "Retail dealer", a person that owns or operates a retail service station in this state;
(4) "Retail service station", a location from which higher ethanol blends are sold to the general public and are dispensed directly into motor vehicle fuel tanks for consumption.
Section 2. Amounts
2. For all tax years beginning on or after January 1, 2023, a retail dealer that sells higher ethanol blends at such a retail dealer's retail service station shall be allowed a total tax credit of $5,000 to be taken against the retail dealer's state income tax liability.
The amount of the credit shall equal five cents per gallon of higher ethanol blend sold by the retail dealer and dispensed through metered pumps at the retail dealer's retail service station during the tax year in which the tax credit is claimed.
Tax credits authorized pursuant to this section shall not be transferred, sold, or assigned.
If the amount of the tax credit exceeds the taxpayer's state tax liability, the difference shall not be refundable but may be carried forward to any of the five subsequent tax years. The total amount of tax credits authorized pursuant to this section for any given fiscal year shall not exceed five million dollars.
Farmers that produce the higher ethanol blend shall receive part of the proceeds not to exceed $2,000.
Section 3. Implementation
3. In the event the total amount of tax credits claimed under this section exceeds the amount of available tax credits, the tax credits shall be apportioned among all eligible retail dealers claiming a tax credit by April fifteenth, or as directed by section 143.851, of the fiscal year in which the tax credit is claimed.
4. The tax credit allowed by this section shall be claimed by such taxpayer at the time such taxpayer files a return and shall be applied against the income tax liability imposed excluding the withholding tax imposed after reduction for all other credits allowed thereon. The department may require any documentation it deems necessary to implement the provisions of this section.
Sponsor: Spark
The gentleman from Wisconsin is recognized
