summary
Introduced
01/08/2025
01/08/2025
In Committee
01/08/2025
01/08/2025
Crossed Over
Passed
Dead
04/24/2025
04/24/2025
Introduced Session
2025 Regular Session
Bill Summary
Biofuel tax credits. Provides tax credits for: (1) the sale of higher ethanol blend; and (2) the: (A) sale of blended biodiesel or renewable diesel; and (B) blending of biodiesel or renewable diesel. Provides that the amount of the higher ethanol blend tax credit is $0.05 per gallon of higher ethanol blend sold at the taxpayer's fueling station. Provides that the total amount of higher ethanol blend tax credits that may be awarded for a state fiscal year may not exceed $10,000,000. Provides that the amount of the tax credit for blended biodiesel or renewable diesel is computed as follows: (1) $0.05 per gallon of blended biodiesel or renewable diesel of at least 5% but not more than 10%: (A) sold at the taxpayer's fueling station; or (B) sold by a distributor directly to the final user. (2) $0.10 per gallon of blended biodiesel or renewable diesel that is more than 10% but not more than 20%: (A) sold at the taxpayer's fueling station; or (B) sold by a distributor directly to the final user. (3) $0.18 per gallon of blended biodiesel or renewable diesel that is more than 20%: (A) sold at the taxpayer's fueling station; or (B) sold by a distributor directly to the final user. (4) For a person who blends biodiesel or renewable diesel the product of: (A) $0.035; multiplied by (B) the number of gallons of blended biodiesel or renewable diesel that is more than 5% and produced by blending biodiesel or renewable diesel at a terminal located in Indiana. Provides that the tax credit for blended biodiesel or renewable diesel is refundable. Provides that the total amount of blended biodiesel or renewable diesel tax credits that may be awarded for a state fiscal year may not exceed $5,000,000.
AI Summary
This bill establishes two new tax credit programs to incentivize the use of higher ethanol blends and biodiesel or renewable diesel in Indiana. For higher ethanol blends, the bill provides a tax credit of $0.05 per gallon sold at a fueling station, with a total annual cap of $10 million. The higher ethanol blend must be between 15% and 85% ethanol and dispensed directly into a vehicle's fuel tank. For biodiesel and renewable diesel, the tax credit varies based on the blend percentage: $0.05 per gallon for blends between 5-10%, $0.10 per gallon for blends between 10-20%, and $0.18 per gallon for blends over 20%. Blenders of biodiesel or renewable diesel can also receive a credit of $0.035 per gallon, with a total annual cap of $5 million. The credits are available to retail dealers, distributors, and blenders with state tax liability, and can be carried forward for up to three years but cannot be sold or transferred. The credits are designed to support alternative fuel production and use in Indiana, with provisions for pass-through entities and specific definitions of fuel types. Both credit programs are set to expire on January 1, 2032, and will take effect for taxable years beginning after December 31, 2025.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
First reading: referred to Committee on Ways and Means (on 01/08/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://iga.in.gov/legislative/2025/bills/house/1127/details |
| Fiscal Note #1: Introduced | https://iga.in.gov/pdf-documents/124/2025/house/bills/HB1127/fiscal-notes/HB1127.01.INTR.FN001.pdf |
| BillText | https://iga.in.gov/pdf-documents/124/2025/house/bills/HB1127/HB1127.01.INTR.pdf |
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