Fillable Form Ia 137 - Ethanol Promotion Tax Credit

• The biofuel threshold percentage is 11% for taxpayers who sell 200,000 gallons or

which ehtanol sales are reported.

less during the 2012 calendar year.

Company-wide:

• The biofuel threshold percentage is 12% for taxpayers who sell 200,000 gallons

The credit is calculated by multiplying the taxpayer’s total ethanol gallonage by the

or less during the 2013 calendar year.

tax credit rate, which is dependent upon the taxpayer’s biofuel threshold percentage

• The biofuel threshold percentage is 13% for taxpayers who sell more than

disparity calculated under Part I on a Company-wide basis. On line 1 report ethanol

200,000 gallons during the 2012 calendar year.

sales for the company calculated on line 5 of Part I. For fiscal-year filers, split sales

• The biofuel threshold percentage is 14% for taxpayers who sell more than

between calendar years.

200,000 gallons during the 2013 calendar year.

Enter the credit rate for the company on line 2, shown in the table below.

For fiscal year filers, it is necessary to determine a biofuel threshold percentage

Compute the credit for the retail motor fuel site on line 3 by multiplying the tax credit

for each calendar year in which the fiscal year falls. In order to do this, the number

rate entered on line 2 by total ethanol gallonage in line 1 for each calendar year in

of gasoline gallons sold during 2012 and 2013 must be annualized to determine

which ethanol sales are reported.

whether 200,000 gallons of motor fuel are sold during the 2012 and 2013 calendar

Ethanol Promotion Tax Credit Rate Table

years for purposes of the biofuel percentage.

EXAMPLE: A taxpayer with a fiscal year beginning May 1, 2012, and ending April

Biofuel Threshold

Tax Credit Rate

30, 2013, with sales of 100,000 gallons at all retail locations between May 1, 2012,

Percentage Disparity

and December 31, 2012, would have annualized 2012 sales of 150,000 gallons that

8 cents

would result in a 2012 biofuel threshold percentage of 11% (100,000 gallons / 8

0.01% to 2.00%

6 cents

months *12 months = 150,000 annualized gallons). If the same taxpayer had sales of

2.01% to 4.00%

4 cents

70,000 gallons between January 1, 2013, and April 30, 2013, the 2013 annualized

4.01% or more

0 cents

sales would be 210,000 gallons and the 2013 biofuel threshold percentage would be

Part III: Final calculation of credit

14% (70,000 gallons / 4 months *12 months = 210,000 annualized gallons).

Site-by-site:

Biofuel threshold percentage disparity

Complete Part III of the IA 137 only once. Add the credit calculated for all retail

To determine the applicable Ethanol Promotion Tax Credit rate, the taxpayer subtracts

motor fuel sites on line 4 of all Part II’s and place on Part III line 1 of the IA 137.

the calculated biofuel distribution percentage on line 10, column A or column D from

Enter in Part II of the IA 148 Tax Credits Schedule.

the proper biofuel threshold percentage on line 11, column A or column D. The

Company-wide:

taxpayer calculates a separate biofuel threshold percentage disparity for each calendar

Place the credit calculated on line 4 of Part II on Part III line 1 of the IA 137. Enter in

year for which sales are reported on the form. If line 10 exceeds line 11, enter zero. If

Part II of the IA 148 Tax Credits Schedule.

line 11 exceeds line 10 by more than 4.01% for the calendar year, the taxpayer is not

eligible to claim the credit on any ethanol sales for that calendar year under the

If the taxpayer has received any pass-through Ethanol Promotion Tax Credit from a

Company-wide method, or for that retail site under the Site-by-site method.

partnership, LLC, S corporation, estate, or trust, indicate that amount on Part III line 2

of the IA 137. If the taxpayer elects the Site-by-site method, only list a pass-through

Part II: Determination of the credit

claim on one Part III. Also enter the amount on Part II of the IA 148 Tax Credits

Site-by-site:

Schedule, providing the pass-through name and FEIN in Part IV of the IA 148

Provide the name and address of the retail motor fuel site including street, city, and

Tax Credits Schedule. If the taxpayer has received multiple pass-through

zip code.

Ethanol Gasoline Promotion Tax Credit claims, sum all claims and enter on

The Ethanol Promotion Tax Credit for each retail motor fuel site is calculated by

Part III line 2 of the IA 137, but list the claims separately on Part II of the IA

multiplying the retail dealer’s total ethanol gallonage at that site by the tax credit rate,

148 Tax Credits Schedule, providing each pass-through name and FEIN in

which is dependent upon the retail site’s biofuel threshold percentage disparity

Part IV.

calculated under Part I on a Site-by-site basis. On line 1, report ethanol sales for the

The Ethanol Promotion Tax Credit can be claimed even if the taxpayer also

retail motor fuel site calculated on line 5 of Part I. For fiscal-year filers, split sales

claims the E85 Gasoline Promotion Credit or the E15 Plus Gasoline

between calendar years.

Promotion Tax Credit for the same ethanol gallons.

Enter the appropriate credit rate for the retail site in line 2, shown in the table below.

Any tax credit in excess of the tax liability can be refunded.

Compute the credit for the retail motor fuel site on line 3 by multiplying the tax credit

The IA 148 Tax Credits Schedule must be completed.

rate entered on line 2 by total ethanol gallonage in line 1 for each calendar year in

41-151d (09/21/12)

Form Ia 137 - Ethanol Promotion Tax Credit - 2012 Page 4

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