SB 254 Indiana Senate · 2025 Regular Session

Biofuel tax credits.

Summary

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. Specifies the amount of the tax credit for higher ethanol blend. Limits the total amount of higher ethanol blend tax credits that may be awarded in a state fiscal year to $10,000. Specifies the amount of the tax credit for blended biodiesel or renewable diesel. Limits the total amount of blended biodiesel or renewable diesel tax credits that may be awarded in a state fiscal year to $10,000.

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Feb 2025

Senate Passage

Feb 2025

House Passage

Governor

Introduced Jan 13, 2025 Last action Mar 3, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Senate Bill (S) → Senate Bill (H) · 7 edits

MODERATE

This bill was amended to significantly reduce the maximum annual tax credit amounts for biofuel sales. The higher ethanol blend credit cap was lowered from $10,000,000 to $10,000, and the blended biodiesel/renewable diesel credit cap was reduced from $5,000,000 to $10,000. Additionally, the bill was reorganized to remove provisions allowing credit carryovers and refunds, and to clarify how pass-through entities can claim credits.

Scope change

The bill's scope remains focused on biofuel tax credits, but the financial limits and administrative rules for claiming those credits have been substantially narrowed.

FISCAL

The maximum annual tax credit for higher ethanol blend was reduced from $10,000,000 to $10,000.

The maximum annual tax credit for blended biodiesel or renewable diesel was reduced from $5,000,000 to $10,000.

REQUIREMENT

Provisions allowing taxpayers to carry over unused credits to future years were removed.

Provisions allowing taxpayers to carry back unused credits or receive refunds were removed.

Added requirements for taxpayers to submit all information the department deems necessary for credit calculation.

ELIGIBILITY

Clarified that shareholders, partners, or members of pass-through entities must multiply their credit by their percentage of distributive income to claim it.

ENFORCEMENT

Added a requirement for the department to publish information about the credit on its public website.

Floor votes · Senate Feb 10, 2025

How they voted

46–3

Passed · 1 other

Total votes 50

Feb 10, 2025

D Democratic10

7 Yea 3 Nay

70% Yea

R Republican40

39 Yea 1

97% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 10, 2025

Upper · Passed

Third reading: passed; Roll Call 86: yeas 46, nays 3

upper

Feb 4, 2025

Upper · Passed

Committee report: amend do pass, adopted

upper

4 primary · 2 co-sponsors