0001|                         HOUSE BILL 718
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0002|     42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003|     1996
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0004|                         INTRODUCED BY
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0005|                        ROBERT A. PERLS
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0006|     
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0007|                                
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0008|     
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0009|     
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0010|     
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0011|                             AN ACT
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0012|     RELATING TO TAXATION; PROVIDING AN ALTERNATIVE FUEL TAX CREDIT;
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0013|     ENACTING SECTIONS OF THE INCOME TAX ACT AND THE CORPORATE INCOME
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0014|     AND FRANCHISE TAX ACT.
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0015|     
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0016|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017|       Section 1.  A new section of the Income Tax Act is enacted
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0018|     to read:
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0019|       "[<u>NEW MATERIAL</u>] ALTERNATIVE FUEL-POWERED VEHICLE PURCHASE
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0020|     AND CONVERSION--INCOME TAX CREDIT.--
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0021|            A.  To encourage the use of fuel-efficient motor
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0022|     vehicles, a taxpayer who files an individual New Mexico income
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0023|     tax return, who is not a dependent of another individual and who
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0024|     has purchased an alternative fuel vehicle or converted a vehicle
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0025|     to use an alternative fuel during the taxable year may claim a
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0001|     credit in an amount equal to one-half of the cost of conversion
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0002|     of that vehicle or one-half of the difference in cost between
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0003|     the alternative fuel vehicle and a conventional fuel version of
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0004|     the same vehicle, not to exceed five thousand dollars ($5,000).
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0005|            B.  A husband and wife who file separate returns for
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0006|     a taxable year in which they could have filed a joint return may
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0007|     each claim only one-half of the credit that would have been
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0008|     allowed on a joint return.
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0009|            C.  A taxpayer who otherwise qualifies and claims a
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0010|     credit on an alternative fuel vehicle owned by a partnership or
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0011|     other business association of which the taxpayer is a member may
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0012|     claim a credit only in proportion to his interest in the
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0013|     partnership or association.   The total credit claimed by all
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0014|     members of the partnership or association shall not exceed five
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0015|     thousand dollars ($5,000) in the aggregate for any single
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0016|     vehicle purchase or conversion.
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0017|            D.  The credit provided by this section may only be
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0018|     deducted from the taxpayer's income tax liability.  Any portion
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0019|     of the tax credit provided by this section that remains unused
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0020|     at the end of the taxpayer's taxable year may be carried forward
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0021|     for three consecutive taxable years; provided, the total tax
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0022|     credit claimed under this section shall not exceed five thousand
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0023|     dollars ($5,000) for any single motor vehicle purchase or
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0024|     conversion.
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0025|            E.  As used in this section:
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0001|                 (1)  "alternative fuel" means natural gas,
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0002|     liquefied petroleum gas, electricity, hydrogen or a fuel mixture
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0003|     containing not less than eighty-five percent ethanol or
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0004|     methanol; 
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0005|                 (2)  "conventional fuel" means gasoline or
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0006|     diesel fuel; and
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0007|                 (3)  "vehicle" means a passenger car or light,
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0008|     medium or heavy duty truck."
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0009|       Section 2.  A new section of the Corporate Income and
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0010|     Franchise Tax Act is enacted to read:
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0011|       "[<u>NEW MATERIAL</u>] ALTERNATIVE FUEL VEHICLE PURCHASE AND
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0012|     CONVERSION--CORPORATE INCOME TAX CREDIT.--
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0013|            A.  To encourage the use of fuel-efficient vehicles,
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0014|     a taxpayer who files a corporate income tax return and who has
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0015|     purchased an alternative fuel vehicle or converted a vehicle to
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0016|     use an alternative fuel during the taxable year may claim a
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0017|     credit in an amount equal to one-half of the cost of conversion
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0018|     of that vehicle or one-half of the difference in cost between
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0019|     the alternative fuel vehicle and a conventional fuel version of
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0020|     the same vehicle, not to exceed five thousand dollars ($5,000).
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0021|            B.  A taxpayer who otherwise qualifies and claims a
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0022|     credit on an alternative fuel vehicle owned by a partnership or
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0023|     other business association of which the taxpayer is a member may
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0024|     claim a credit only in proportion to his interest in the
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0025|     partnership or association.  The total credit claimed by all
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0001|     members of the partnership or association shall not exceed five
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0002|     thousand dollars ($5,000) in the aggregate for any single motor
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0003|     vehicle purchase or conversion.
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0004|            C.  The credit provided by this section may only be
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0005|     deducted from the taxpayer's corporate income tax liability. 
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0006|     Any portion of the tax credit provided by this section that
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0007|     remains unused at the end of the taxpayer's taxable year may be
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0008|     carried forward for three consecutive taxable years; provided,
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0009|     the total tax credit claimed under this section shall not exceed
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0010|     five thousand dollars ($5,000) for any single vehicle purchase
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0011|     or conversion.
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0012|            E.  As used in this section:
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0013|                 (1)  "alternative fuel" means natural gas,
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0014|     liquefied petroleum gas, electricity, hydrogen or a fuel mixture
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0015|     containing not less than eighty-five percent ethanol or
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0016|     methanol; 
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0017|                 (2)  "conventional fuel" means gasoline or
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0018|     diesel fuel; and
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0019|                 (3)  "vehicle" means a passenger car or light,
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0020|     medium or heavy duty truck."
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0021|       Section 3.  APPLICABILITY.--The provisions of this act
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0022|     apply to taxable years beginning on or after January 1, 1996.
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0023|                              
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