SB 111-16: Ethanol Subsidization Act of 2022 (Debating)

[WD]

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

[Senator-elect Spark]

In a time of high inflation, gasoline is in short supply. This bill is a way to subsidize ethanol production. The bill helps put producers of ethanol fuel to keep our supply going.

[Saint Milei]

No chance I will support this. Subsidies pick winners and losers in the market. The best way to combat inflation is to do NGDP targeting or let the market decide interest rates.

[S019]

Ethanol subsidies are awful, please no

[Mr. Reactionary]

I greatly respect and appreciate my colleagues concern for high fuel prices and desire to help consumers. I am however concerned that whatever impact this may have on fuel price inflation may conversely accelerate food price inflation, as corn is removed from the food supply driving food prices up. We repealed ethanol subsidies and blending mandates in 2018 so Im not sure how many gasoline producers are actually still blending ethanol into fuel. Its not illegal to do so, but since its no longer required its unclear how much of an impact this might actually have on fuel prices since gasoline producers are not required to buy and blend ethanol.

Nonetheless I do thank my colleague for bringing attention to the issues of high fuel and food prices and look forward to working with him on other policies to help consumers fight inflation.

[Mr. Reactionary]

Its been 10 days. I think we know where we all stand on this.

If there's no more debate by the weekend I think we should vote on this to proceed to the next bill.

So I hereby request unanimous consent to proceed to a final vote on this bill. UC motion shall be open until Friday at midnight eastern time (40ish hours).

[Deep Dixieland Senator, Muad'dib (OSR MSR)]

Ethanol fuel is energy inefficient compared to standard gasoline. Which means you need to burn more to get the same energy output.

[Mr. Reactionary]

Im going to call this a bit early since its still been longer than 24 hours and I have to wake up early tomorrow.

A final vote is now open lasting 75ish hours (until 11:59 PM eastern Monday night) or until everyone has voted, whichever occurs soonest.

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:

1. For the purposes of this section, the following terms shall mean:

(A) "Department", the Senate

(B) "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;

(C) "Retail dealer", a person that owns or operates a retail service station in this state;

(D) "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.

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.

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.

[Deep Dixieland Senator, Muad'dib (OSR MSR)]

Nay

[S019]

Nay

[KoopaDaQuick 🇵🇸]

Aye (ethanol is dope as hell and anything that gets us to use this cleaner fuel is good)

[Southern Senator North Carolina Yankee]

Nay

[Devout Centrist]

Abstain

[West_Midlander]

abstain

[Senator-elect Spark]

Aye

[Utah Neolib]

Aye

[Saint Milei]

Nay

[Mr. Reactionary]

Nay

[Mr. Reactionary]

Bill fails 3-5-2-8