Fillable Form Ia 137 - Ethanol Promotion Tax Credit

2012 IA 137 Instructions

An Ethanol Promotion Tax Credit is available to taxpayers who:

Total ethanol gallonage

The total ethanol gallonage is the total number of pure ethanol gallons sold. This is

• are retail dealers of ethanol blended gasoline and

computed on lines 1-4 by multiplying the ethanol blended gallons sold (column A/

• who operate motor fuel pumps at an Iowa retail motor fuel site.

column D) by the appropriate ethanol content percentage (column B/column E). For

Tank wagons are considered retail motor fuel sites.

example, 10,000 gallons of ethanol blended gasoline formulated with 10% by volume

For tax years beginning on or after January 1, 2011, the retail dealer can choose to

of ethanol results in an ethanol gallonage of 1,000.

compute the biofuel distribution percentage, biofuel threshold percentage disparity,

The ethanol percentage used for E85 is 79%, which is an average of the amount of

and tax credit on a Company-wide or Site-by-site basis. The Company-wide or Site-

ethanol contained in E85 during warm and cold weather. If a blend other than E10,

by-site method chosen with the first return that begins on or after January 1, 2011 is

E15, or E85 is sold, designate the ethanol gallons sold in line 4, column A or column

binding on the retail dealer for subsequent tax years unless the retail dealer petitions

D, the ethanol content percentage in line 4, column B or column E, and compute the

the Department for a change in the method.

ethanol gallonage in column C or column F. If more than one additional blend is sold,

provide that information on a separate page and include in the total gasoline gallons

If the retail dealer chooses the Company-wide method, then Part I and Part II of the

sold on line 7, column A or column D, and the total pure ethanol gallons sold on line

form will include sales at all retail locations in Iowa, and only one Part I and one Part

5, column C or column F.

II will be completed. If the retail dealer chooses the Site-by-site method, then Part I

Total biodiesel gallonage

and Part II of the form must be completed for each retail motor fuel site in Iowa

The total biodiesel gallonage is the total number of pure biodiesel gallons sold. This is

eligible for the credit. Only one Part III must be completed under either method. If

computed on lines 8a-8e by multiplying the biodiesel blended fuel gallons sold

the Site-by-site method is chosen, the retail sales at all sites in Iowa must be included

(column A/column D) by the appropriate biodiesel content percentage (column B/

in determining the biofuel threshold percentage on line 11 of Part I.

column E). For example, 10,000 gallons of biodiesel blended fuel formulated with 2%

by volume of biodiesel results in a biodiesel gallonage of 200.

EXAMPLE: A retail dealer files on a calendar year basis, and chooses the Site-by-site

method to compute the credit. The retail dealer has two sites in Iowa, and each site

If sales of biodiesel blended fuel are made for a blend other than those listed,

sells 125,000 gallons of gasoline during 2012. The retail dealer must enter 13% as

designate the biodiesel gallons sold in line 8e, column A or column D, and the

the biofuel threshold percentage on line 11 of each Part I since the total gallons sold

biodiesel content percentage in line 8e, column B or column E. If more than one

during 2012 at all retail sites in Iowa exceeds 200,000 gallons.

additional blend is sold, provide that information on a separate page and include in the

total pure biodiesel sold on line 8, column C or column F.

Provide the name and SSN or FEIN of the taxpayer claiming the credit. Report the

Total gasoline gallonage

ending date of the tax year in which the credit is being claimed. If the Ethanol

The total gasoline gallonage computed in line 7, column A or column D, is the total

Promotion Tax Credit is being passed through to the taxpayer by a S Corportation,

number of gallons of gasoline sold; this does not include any biodiesel or diesel

partnership, LLC, estate, or trust, also provide that entity name and FEIN.

gallons sold.

Part I: Determination of biofuel distribution percentage and biofuel threshold

Biofuel distribution percentage

percentage disparity

Divide line 9, column C by line 7, column A for calendar year 2012 sales. Divide

Calendar-year filers

line 9, column F by line 7, column D for calendar year 2013 sales. Record the result

If the taxpayer files a tax return on a calendar year basis, then only 2012 gallons

to two decimal places, for example, 12.05%.

need to be reported.

Biofuel threshold percentage

Fiscal-year filers

The tax credit rate applied under the Ethanol Promotion Tax Credit depends on

If a taxpayer files a tax return for a fiscal year that extends into 2013, the calculation

whether the taxpayer attains the biofuel threshold percentage, which in turn is

must be performed separately for all gallons sold during 2012 and for all gallons

dependent on the number of total gasoline gallons sold at all retail motor fuel sites

sold from January 1, 2013, through the end of the taxpayer’s fiscal year.

operated by the taxpayer during the calendar year even if the Site-by-site method is

chosen. Taxpayers with total gasoline sales exceeding 200,000 gallons in a year face a

Biofuel distribution percentage

higher biofuel percentage threshold than taxpayers with total gasoline sales of 200,000

The biofuel distribution percentage is calculated by adding the total ethanol gallonage,

gallons or less.

line 5, and the total biodiesel gallonage, line 9, and dividing this sum by the total

gasoline gallonage, line 7.

41-151c (09/28/12)

Form Ia 137 - Ethanol Promotion Tax Credit - 2012 Page 3

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