CHAPTER 27. BLENDED BIODIESEL TAX CREDITS
IC 6-3.1-27
Chapter 27. Blended Biodiesel Tax Credits
IC 6-3.1-27-1
"Biodiesel"
Sec. 1. As used in this chapter, "biodiesel" means a renewable,biodegradable, mono alkyl ester combustible liquid fuel derived fromagricultural plant oils or animal fats that meets American Society forTesting and Materials specification D6751-03a StandardSpecification for Biodiesel Fuel (B100) Blend Stock for DistillateFuels.
As added by P.L.224-2003, SEC.199. Amended by P.L.122-2006,SEC.4.
IC 6-3.1-27-2
"Blended biodiesel"
Sec. 2. As used in this chapter, "blended biodiesel" refers to ablend of biodiesel with petroleum diesel so that the percentage ofbiodiesel in the blend is at least two percent (2%) (B2 or greater).The term does not include biodiesel (B100).
As added by P.L.224-2003, SEC.199.
IC 6-3.1-27-2.5
"Corporation"
Sec. 2.5. As used in this chapter, "corporation" refers to theIndiana economic development corporation.
As added by P.L.191-2005, SEC.2.
IC 6-3.1-27-3
"Dealer"
Sec. 3. As used in this chapter, "dealer" has the meaning set forthin IC 6-6-1.1-103.
As added by P.L.224-2003, SEC.199.
IC 6-3.1-27-3.2
"Distribute at retail"
Sec. 3.2. As used in this chapter, "distribute at retail" means tosell or otherwise distribute for consideration to an end user inIndiana.
As added by P.L.191-2005, SEC.3.
IC 6-3.1-27-3.5
"Facility"
Sec. 3.5. As used in this chapter, "facility" refers to a facility thatis located in Indiana and is for the production of:
(1) biodiesel;
(2) blended biodiesel that is blended with biodiesel produced ata facility located in Indiana; or
(3) both biodiesel and blended biodiesel, as described insubdivision (2).As added by P.L.191-2005, SEC.4.
IC 6-3.1-27-4
"Pass through entity"
Sec. 4. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross incometax under IC 6-3-2-2.8(2);
(2) a partnership;
(3) a limited liability company; or
(4) a limited liability partnership.
As added by P.L.224-2003, SEC.199.
IC 6-3.1-27-5
Repealed
(Repealed by P.L.191-2005, SEC.16.)
IC 6-3.1-27-6
"State tax liability"
Sec. 6. As used in this chapter, "state tax liability" means ataxpayer's total tax liability that is incurred under:
(1) IC 6-2.5 (the state gross retail and use tax);
(2) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
(3) IC 6-5.5 (the financial institutions tax); and
(4) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of the credits that underIC 6-3.1-1-2 are to be applied before the credit provided by thischapter.
As added by P.L.224-2003, SEC.199.
IC 6-3.1-27-7
"Taxpayer"
Sec. 7. As used in this chapter, "taxpayer" means an individual orentity that has any state tax liability.
As added by P.L.224-2003, SEC.199.
IC 6-3.1-27-8
Biodiesel production tax credit
Sec. 8. (a) Subject to section 9.5 of this chapter, a taxpayer thathas been certified by the corporation as eligible for a credit underthis section and produces biodiesel at a facility located in Indiana isentitled to a credit against the taxpayer's state tax liability equal tothe product of:
(1) one dollar ($1); multiplied by
(2) the number of gallons of biodiesel:
(A) produced at the Indiana facility during the taxable year;and
(B) used to produce blended biodiesel.
(b) The corporation shall determine the maximum amount ofcredits that a taxpayer (or, if the person producing the biodiesel is apass through entity, the shareholders, partners, or members of the
pass through entity) is eligible to receive under this section. The totalamount of credits that the corporation may grant to a taxpayer (or, ifthe person producing the biodiesel is a pass through entity, theshareholders, partners, or members of the pass through entity) underthis section may not exceed three million dollars ($3,000,000) for alltaxable years.
(c) Notwithstanding subsection (b), the total amount of creditsallowed a taxpayer (or if the person producing biodiesel is a passthrough entity, the shareholders, partners, or members of the passthrough entity) may be increased to an amount not to exceed a totalof five million dollars ($5,000,000) for all taxable years with theprior approval of the Indiana economic development corporation.
As added by P.L.224-2003, SEC.199. Amended by P.L.191-2005,SEC.5; P.L.122-2006, SEC.5.
IC 6-3.1-27-9
Blended biodiesel production credit
Sec. 9. (a) Subject to section 9.5 of this chapter, a taxpayer thathas been certified by the corporation as eligible for a credit underthis section and produces blended biodiesel at a facility located inIndiana is entitled to a credit against the taxpayer's state tax liabilityequal to the product of:
(1) two cents ($0.02); multiplied by
(2) the number of gallons of blended biodiesel:
(A) produced at the Indiana facility; and
(B) blended with biodiesel produced at a facility located inIndiana.
(b) The corporation shall determine the maximum amount ofcredits that a taxpayer (or, if the person producing the blendedbiodiesel is a pass through entity, the shareholders, partners, ormembers of the pass through entity) is eligible to receive under thissection. The total amount of credits that the corporation may grant toa taxpayer (or, if the person producing the blended biodiesel is a passthrough entity, the shareholders, partners, or members of the passthrough entity) under this section may not exceed three milliondollars ($3,000,000) for all taxable years.
As added by P.L.224-2003, SEC.199. Amended by P.L.191-2005,SEC.6; P.L.122-2006, SEC.6.
IC 6-3.1-27-9.5
Maximum amount of tax credits allowed
Sec. 9.5. Except as provided in IC 6-3.1-28-11(c), the total amountof credits allowed under:
(1) section 8 of this chapter;
(2) section 9 of this chapter; and
(3) IC 6-3.1-28;
may not exceed fifty million dollars ($50,000,000) for all taxpayersand all taxable years beginning after December 31, 2004. Thecorporation shall determine the maximum allowable amount for eachtype of credit, which must be at least four million dollars
($4,000,000) for each type of credit.
As added by P.L.191-2005, SEC.7. Amended by P.L.122-2006,SEC.7; P.L.175-2007, SEC.1.
IC 6-3.1-27-10
Credit for sale of blended biodiesel
Sec. 10. (a) A taxpayer that:
(1) is a dealer; and
(2) distributes at retail blended biodiesel in a taxable year;
is entitled to a credit against the taxpayer's state tax liability.
(b) The amount of the credit allowed under this section is theproduct of:
(1) one cent ($0.01); multiplied by
(2) the total number of gallons of blended biodiesel distributedat retail by the taxpayer in a taxable year.
(c) The total amount of credits allowed under this section may notexceed one million dollars ($1,000,000) for all taxpayers and alltaxable years.
(d) A credit under this section may not be taken for blendedbiodiesel distributed at retail after December 31, 2010.
As added by P.L.224-2003, SEC.199. Amended by P.L.191-2005,SEC.8; P.L.122-2006, SEC.8.
IC 6-3.1-27-11
Pass through entities
Sec. 11. If a pass through entity is entitled to a credit under thischapter but does not have state tax liability against which the taxcredit may be applied, a shareholder, partner, or member of the passthrough entity is entitled to a tax credit equal to:
(1) the tax credit determined for the pass through entity for thetaxable year; multiplied by
(2) the percentage of the pass through entity's distributiveincome to which the shareholder, partner, or member is entitled.
As added by P.L.224-2003, SEC.199.
IC 6-3.1-27-12
Carryover of tax credits; assignment
Sec. 12. (a) If the amount of the credit determined under thischapter for a taxpayer in a taxable year exceeds the taxpayer's statetax liability for that taxable year, the taxpayer may carry over theexcess to the following taxable years. The amount of the creditcarryover from a taxable year shall be reduced to the extent that thecarryover is used by the taxpayer to obtain a credit under this chapterfor any subsequent taxable year. A credit may not be carried forwardfor more than six (6) taxable years following the taxable year inwhich the taxpayer was first entitled to claim the credit.
(b) A taxpayer is not entitled to a carryback or refund of anyunused credit. A taxpayer may not sell, assign, convey, or otherwisetransfer the tax credit provided by this chapter.
As added by P.L.224-2003, SEC.199. Amended by P.L.191-2005,
SEC.9.
IC 6-3.1-27-13
Claiming credit
Sec. 13. To receive the credit provided by this chapter, a taxpayermust do the following:
(1) Claim the credit on the taxpayer's state tax return or returnsin the manner prescribed by the department.
(2) Provide a copy of the certificate of the corporation finding:
(A) that the taxpayer; or
(B) if the taxpayer is a shareholder, partner, or member of apass through entity, that the pass through entity;
is eligible for the credit under IC 5-28-6-3.
(3) Submit to the department proof of all information that thedepartment determines is necessary for the calculation of thecredit provided by this chapter.
The department may require a pass through entity to provideinformational reports that the department determines necessary forthe department to calculate the percentage of a credit provided bythis chapter to which a shareholder, partner, or member of the passthrough entity is entitled.
As added by P.L.224-2003, SEC.199. Amended by P.L.191-2005,SEC.10.