HB 5359

substitute for
House BILL NO. 5359
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.847) by adding sections 284 and 674.
the peoplE of the state of michigan enact:
Sec. 284. (1) For
tax years beginning on and after January 1, 2026 through December 31, 2030, a taxpayer
who is a retail dealer may claim a credit against the tax imposed by this part
equal to the sum of the following:
(a) $0.05 per gallon of E15 fuel that the retail dealer sells and
dispenses through metered pumps at the retail dealer's motor fuel site during
the tax year.
(b) $0.085 per gallon of E85 fuel that the retail dealer sells and
dispenses through metered pumps at the retail dealer's motor fuel site during
the tax year.
(2) For a taxpayer who is a member of a flow-through entity that
qualifies for the credit under this section, that taxpayer may claim a credit
against the member's tax liability under this part based on the member's
distributive share of business income reported from that flow-through entity or
an alternative method approved by the department.
(3) If the credit allowed under this section for the tax year exceeds
the tax liability of the taxpayer for the tax year, that portion of the credit
that exceeds the tax liability must be refunded.
(4) As used in this section:
(a) "E15 fuel" means gasoline blended with more than 10% of
ethanol but not more than 15% of ethanol by volume.
(b) "E85 fuel" means a high-level ethanol-gasoline blend
containing more than 50% of ethanol but not more than 83% of ethanol by volume
and that is suitable for use in flexible fuel vehicles.
(c) "Motor fuel" means that term as defined in section 4 of
the motor fuel tax act, 2000 PA 403, MCL 207.1004.
(d) "Motor fuel site" means an establishment at which motor
fuel is sold or offered for sale to the public.
(e) "Retail dealer" means the ultimate vendor as that term is
defined in section 6 of the motor fuel tax act, 2000 PA 403, MCL 207.1006.
Sec. 674. (1) For
tax years beginning on and after January 1, 2026 through December 31, 2030, a
taxpayer that is a retail dealer may claim a credit against the tax imposed by
this part equal to the sum of the following:
(a) $0.05 per gallon of E15 fuel that the retail dealer sells and
dispenses through metered pumps at the retail dealer's motor fuel site during
the tax year.
(b) $0.085 per gallon of E85 fuel that the retail dealer sells and
dispenses through metered pumps at the retail dealer's motor fuel site during
the tax year.
(2) If the credit allowed under this section for the tax year exceeds
the tax liability of the taxpayer for the tax year, that portion of the credit
that exceeds the tax liability must be refunded.
(3) As used in this section:
(a) "E15 fuel" means gasoline blended with more than 10% of
ethanol but not more than 15% of ethanol by volume.
(b) "E85 fuel" means a high-level ethanol-gasoline blend
containing more than 50% of ethanol but not more than 83% of ethanol by volume
and that is suitable for use in flexible fuel vehicles.
(c) "Motor fuel" means that term as defined in section 4 of
the motor fuel tax act, 2000 PA 403, MCL 207.1004.
(d) "Motor fuel site" means an establishment at which motor
fuel is sold or offered for sale to the public.
(e) "Retail dealer" means the ultimate vendor as that term is
defined in section 6 of the motor fuel tax act, 2000 PA 403, MCL 207.1006.