Form Ia 137 - Ethanol Promotion Tax Credit - Iowa Department Of Revenue

INSTRUCTIONS:

This 2008 form should only be completed for taxpayers that have a fiscal year ending before

December 31, 2009.

Beginning January 1, 2009, an ethanol promotion tax

biofuel threshold percentage disparity, which is also

credit is available to taxpayers who:

computed on Part I of this form.

Part II of this form sets forth the calculation of the

• are retail dealers of ethanol blended gasoline and

credit, which must be calculated separately for each

• who operate motor fuel pumps at a retail motor

retail motor fuel site operated by the taxpayer.

fuel site.

The ethanol blended credit is calculated by

Tank wagons are considered retail motor fuel sites.

multiplying the retail dealer’s total ethanol gallonage

The amount of the ethanol promotion tax credit

at each site by the tax credit rate, which is dependent

depends on whether the taxpayer attains a biofuel

upon the retail dealer’s biofuel threshold percentage

threshold percentage, which in turn is dependent on

disparity.

the number of gallons of motor fuel sold during the

The tax credit rate is set forth below:

period from January 1, 2009, through December 31,

2009.

Biofuel Threshold

Percentage Disparity

Tax Credit Rate

• The biofuel threshold percentage is 6% for

6.5 cents

taxpayers who sell 200,000 gallons or less during

the 2009 calendar year, and

0.01% to 2.00%

4.5 cents

• The biofuel threshold percentage is 10% for

2.01% to 4.00%

2.5 cents

taxpayers who sell more than 200,000 gallons

4.01% or more

0 cents

during the 2009 calendar year.

This credit can be claimed even if the taxpayer also

Part I of this form is the calculation of the

claims an E85 gasoline promotion credit for the

taxpayer’s biofuel distribution percentage, which is

same ethanol gallons.

computed for all gallons sold during the tax period at

all motor fuel sites. This percentage is calculated by

For taxpayers whose tax year ends before December

adding the total ethanol gallonage and the total

31, 2009, the taxpayer will compute the tax credit on

biodiesel fuel gallonage, and dividing this sum by

the total ethanol gallonage sold during the period

the total gasoline gallonage.

from January 1, 2009, through the end of the tax

year.

The total ethanol gallonage is the total number of

gallons of ethanol sold. For example, 10,000 gallons

The number of gallons sold during the period from

of ethanol blended gasoline formulated with a 10%

January 1, 2009, through the end of the tax year will

by volume of ethanol results in an ethanol gallonage

be annualized to determine whether 200,000 gallons

of 1,000.

of motor fuel are sold during the 2009 calendar year

for purposes of the biofuel threshold percentage.

The total biodiesel gallonage is the total number of

gallons of biodiesel sold. For example, 10,000 gallon

For example, if 70,000 gallons were sold by a

of biodiesel blended fuel formulated with a 2% by

taxpayer between January 1, 2009, and their year end

volume of biodiesel results in a biodiesel gallonage

of April 30, 2009, this equates to an annualized

of 200.

amount of 210,000 gallons. This would result in a

biofuel threshold percentage for this taxpayer of

The total gasoline gallonage is the total number of

10%.

gallons of gasoline sold.

If the taxpayer filed their Iowa return for the period

The biofuel distribution percentage is compared to

which ended before December 31, 2009, and did not

the biofuel threshold percentage to determine the

41-151c (8/14/08)

Form Ia 137 - Ethanol Promotion Tax Credit - Iowa Department Of Revenue - 2008 Page 3

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