HOUSE BILL 282
49th legislature - STATE OF NEW MEXICO - second session, 2010
INTRODUCED BY
Ben Lujan
AN ACT
RELATING TO TAXATION; PROVIDING INCOME TAX CREDITS TO ENCOURAGE CONVERSION OF VEHICLES TO THE USE OF NATURAL GAS AND TO ENCOURAGE RETAIL BUSINESSES SELLING GASOLINE TO EXPAND INTO DISPENSING NATURAL GAS FOR VEHICLE FUEL.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of the Income Tax Act is enacted to read:
"[NEW MATERIAL] CREDIT--VEHICLE CONVERSION TO NATURAL GAS.--
A. A taxpayer who files an individual New Mexico income tax return for a taxable year beginning on or after January 1, 2010, who is not a dependent of another taxpayer and who converts a motor vehicle from use of gasoline as a fuel to use of natural gas as a fuel, may claim, and the department may allow, a tax credit in the amount of seventy percent of the cost of converting the motor vehicle from using gasoline as a fuel to using natural gas; provided that the motor vehicle is owned by the taxpayer and is registered in New Mexico. The tax credit that may be claimed pursuant to this section may be referred to as the "vehicle natural gas conversion credit". The vehicle natural gas conversion credit may be claimed only for conversion of a motor vehicle to natural gas use on or after January 1, 2010 but before January 1, 2017.
B. The department shall allow a vehicle natural gas conversion credit only for a natural gas conversion system approved by the energy, minerals and natural resources department.
C. The vehicle natural gas conversion credit may be claimed only for the taxable year in which the taxpayer's vehicle is converted to natural gas use.
D. Prior to July 1, 2010, the energy, minerals and natural resources department shall adopt rules establishing procedures and guidelines for obtaining approval of a natural gas conversion system for purposes of the vehicle natural gas conversion credit. The rules shall address the basic technical specifications and requirements necessary for a natural gas conversion system to gain the approval of the energy, minerals and natural resources department. The energy, minerals and natural resources department shall review and modify the specifications and requirements as necessary to address technological improvements in natural gas conversion systems. The energy, minerals and natural resources department shall provide a certificate to a taxpayer whose natural gas conversion system is approved for purposes of claiming a vehicle natural gas conversion credit. The certificate shall include the vehicle identification number, the vehicle registration plate number and the taxpayer's identification number. Certificates shall be numbered sequentially and recorded by the energy, minerals and natural resources department.
E. The department may allow a maximum annual aggregate of two million dollars ($2,000,000) in vehicle natural gas conversion corporate income tax credits pursuant to the Corporate Income and Franchise Tax Act and vehicle natural gas conversion credits that may be claimed pursuant to the Income Tax Act. Applications for a credit shall be considered in the order received by the department.
F. A taxpayer who otherwise qualifies and claims a vehicle natural gas conversion credit for the cost of converting a motor vehicle owned by the taxpayer to use natural gas as a fuel from a gasoline-fueled motor vehicle registered in New Mexico that may be claimed by a partnership of which the taxpayer is a member may claim a credit only in proportion to the taxpayer's interest in the partnership. The total credit claimed by all members of the partnership shall not exceed the aggregate of the allowable costs pursuant to Subsection A of this section.
G. As used in this section:
(1) "motor vehicle" means a vehicle that is self-propelled by an internal combustion engine and is registered pursuant to the Motor Vehicle Code; and
(2) "natural gas conversion system" means a system for changing an internal combustion engine that operates on gasoline as a fuel into an internal combustion engine that operates on natural gas."
Section 2. A new section of the Income Tax Act is enacted to read:
"[NEW MATERIAL] CREDIT--EXPANSION OF RETAIL FUEL STATION TO DISPENSE NATURAL GAS.--
A. A taxpayer who files an individual New Mexico income tax return for a taxable year beginning on or after January 1, 2010, who is not a dependent of another taxpayer and who purchases and installs in New Mexico, at the taxpayer's gasoline or other fuel-dispensing retail station, pumps or other devices that dispense natural gas into storage tanks for use to fuel motor vehicles, may claim, and the department may allow, a tax credit in the amount of fifty percent of the cost of purchasing and installing pumps or other devices that dispense natural gas into one or more storage tanks of a motor vehicle for use to power the motor vehicle. The tax credit that may be claimed pursuant to this section may be referred to as the "natural gas dispensers credit". The natural gas dispensers credit may be claimed only for purchase and installation of a natural gas dispensing system on or after January 1, 2010 and before January 1, 2017.
B. The department shall allow a natural gas dispensers credit only for dispensing systems approved by the energy, minerals and natural resources department.
C. A portion of the natural gas dispensers credit that remains unused in a taxable year may be carried forward for a maximum of three consecutive taxable years following the taxable year in which the credit originates until the credit is fully expended.
D. Prior to July 1, 2010, the energy, minerals and natural resources department shall adopt rules establishing procedures and guidelines for obtaining approval of natural gas dispensing systems for purposes of the natural gas dispensers credit. The rules shall address the basic technical specifications and requirements necessary for safe and effective installation of a natural gas dispensing system to gain the approval of the energy, minerals and natural resources department. The energy, minerals and natural resources department shall review and modify the specifications and requirements as necessary. The energy, minerals and natural resources department shall provide a certificate to a taxpayer whose natural gas dispensing system is approved for purposes of claiming a natural gas dispensers credit. Certificates shall be numbered sequentially and recorded by the energy, minerals and natural resources department.
E. The department may allow a maximum annual aggregate of two million dollars ($2,000,000) in natural gas dispensers corporate income tax credits pursuant to the Corporate Income and Franchise Tax Act and natural gas dispensers credits that may be claimed pursuant to the Income Tax Act. Applications for a credit shall be considered in the order received by the department.
F. A taxpayer who otherwise qualifies and claims a natural gas dispensers credit for the cost of purchasing and installing pumps or other devices that dispense natural gas into one or more storage tanks of a motor vehicle that may be claimed by a partnership of which the taxpayer is a member may claim a credit only in proportion to the taxpayer's interest in the partnership. The total credit claimed by all members of the partnership shall not exceed the aggregate of the allowable costs pursuant to Subsection A of this section.
G. As used in this section:
(1) "motor vehicle" means a vehicle that is self-propelled by an internal combustion engine and is registered pursuant to the Motor Vehicle Code; and
(2) "natural gas dispensing system" means pumps or other equipment required to dispense natural gas into storage tanks of a motor vehicle that enable the motor vehicle to operate on natural gas."
Section 3. A new section of the Corporate Income and Franchise Tax Act is enacted to read:
"[NEW MATERIAL] CREDIT--VEHICLE CONVERSION TO NATURAL GAS.--
A. A taxpayer that files a New Mexico corporate income tax return for a taxable year beginning on or after January 1, 2010 and converts on or after January 1, 2010 and before January 1, 2017 a motor vehicle from use of gasoline as a fuel to use of natural gas as a fuel may claim, and the department may allow, a tax credit against the taxpayer's corporate income and franchise tax liabilities in the amount of seventy percent of the cost of converting the motor vehicle from using gasoline as a fuel to using natural gas; provided that the motor vehicle is owned by the taxpayer and is registered in New Mexico. The tax credit that may be claimed pursuant to this section may be referred to as the "vehicle natural gas conversion corporate income tax credit".
B. The department shall allow a vehicle natural gas conversion corporate income tax credit only for a conversion system approved by the energy, minerals and natural resources department.
C. A portion of the vehicle natural gas conversion corporate income tax credit that remains unused in a taxable year may be carried forward for a maximum of three consecutive taxable years following the taxable year in which the credit originates until the credit is fully expended.
D. Prior to July 1, 2010, the energy, minerals and natural resources department shall adopt rules establishing procedures and guidelines for obtaining approval of natural gas conversion systems for purposes of the vehicle natural gas conversion corporate income tax credit. The rules shall address the basic technical specifications and requirements necessary for safe and effective installation of a natural gas conversion system to gain the approval of the energy, minerals and natural resources department. The energy, minerals and natural resources department shall review and modify the specifications and requirements as necessary. The energy, minerals and natural resources department shall provide a certificate to a taxpayer whose natural gas conversion system is approved for purposes of claiming a vehicle natural gas conversion corporate income tax credit. Certificates shall be numbered sequentially and recorded by the energy, minerals and natural resources department.
E. The department may allow a maximum annual aggregate of two million dollars ($2,000,000) in vehicle natural gas conversion corporate income tax credits and vehicle natural gas conversion credits that may be claimed pursuant to the Income Tax Act. Applications for a credit shall be considered in the order received by the department.
F. As used in this section:
(1) "motor vehicle" means a vehicle that is self-propelled by an internal combustion engine and is registered pursuant to the Motor Vehicle Code; and
(2) "natural gas dispensing system" means pumps or other equipment required to dispense natural gas into storage tanks of a motor vehicle that enable the motor vehicle to operate on natural gas."
Section 4. A new section of the Corporate Income and Franchise Tax Act is enacted to read:
"[NEW MATERIAL] CREDIT--EXPANSION OF RETAIL FUEL STATION TO DISPENSE NATURAL GAS.--
A. A taxpayer that files a New Mexico corporate income tax return for a taxable year beginning on or after January 1, 2010 and that purchases and installs on or after January 1, 2010 but on or before December 31, 2016 in New Mexico, at the taxpayer's gasoline or other fuel-dispensing retail station, pumps or other devices that dispense natural gas into storage tanks for use to fuel motor vehicles may claim, and the department may allow, a tax credit to be claimed against the taxpayer's corporate income or franchise tax liabilities in the amount of fifty percent of the cost of purchasing and installing pumps or other devices that dispense natural gas into one or more storage tanks of a motor vehicle for use to power the motor vehicle. The tax credit that may be claimed pursuant to this section may be referred to as the "natural gas dispensers corporate income tax credit".
B. The department shall allow a natural gas dispensers corporate income tax credit only for a natural gas dispensing system approved by the energy, minerals and natural resources department.
C. A portion of the natural gas dispensers corporate income tax credit that remains unused in a taxable year may be carried forward for a maximum of three consecutive taxable years following the taxable year in which the credit originates until the credit is fully expended.
D. Prior to July 1, 2010, the energy, minerals and natural resources department shall adopt rules establishing procedures and guidelines for obtaining approval of natural gas dispensing systems for purposes of the natural gas dispensers corporate income tax credit. The rules shall address the basic technical specifications and requirements necessary for safe and effective installation of a natural gas dispensing system to gain the approval of the energy, minerals and natural resources department. The energy, minerals and natural resources department shall review and modify the specifications and requirements as necessary. The energy, minerals and natural resources department shall provide a certificate to a taxpayer whose natural gas dispensing system is approved for purposes of claiming a natural gas dispensers corporate income tax credit. Certificates shall be numbered sequentially and recorded by the energy, minerals and natural resources department.
E. The department may allow a maximum annual aggregate of two million dollars ($2,000,000) in natural gas dispensers corporate income tax credits pursuant to this section and natural gas dispensers credits that may be claimed pursuant to the Income Tax Act. Applications for a credit shall be considered in the order received by the department.
F. As used in this section:
(1) "motor vehicle" means a vehicle that is self-propelled by an internal combustion engine and is registered pursuant to the Motor Vehicle Code; and
(2) "natural gas dispensing system" means pumps or other equipment required to dispense natural gas into storage tanks of a motor vehicle that enable the motor vehicle to operate on natural gas."
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