HOUSE BILL 616
51st legislature - STATE OF NEW MEXICO - first session, 2013
INTRODUCED BY
Brian F. Egolf
AN ACT
RELATING TO TAXATION; PROVIDING FOR ALTERNATIVE FUEL VEHICLE INCOME AND CORPORATE INCOME TAX CREDITS; PROVIDING FOR ALTERNATIVE FUELING STATION INCOME AND CORPORATE INCOME TAX CREDITS.
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] ALTERNATIVE FUEL VEHICLE INCOME TAX CREDIT.--
A. A taxpayer who files an individual New Mexico income tax return, who is not a dependent of another individual and who, on or after July 1, 2013 and prior to July 1, 2016, purchases an alternative fuel vehicle or qualified conversion equipment may claim a credit in an amount not to exceed fifty percent of the cost basis of the alternative fuel vehicle or of the purchase price of the qualified conversion equipment. The credit provided in this section may be referred to as the "alternative fuel vehicle income tax credit".
B. The purpose of the alternative fuel vehicle income tax credit is to encourage mainstream transition to the use of alternative fuels in motor vehicles and reduce the use of gasoline or diesel fuel.
C. A taxpayer may claim the alternative fuel vehicle income tax credit in the taxable year in which the taxpayer purchases the alternative fuel vehicle or qualified conversion equipment. The taxpayer shall claim the credit within one year following the end of the calendar year in which the taxpayer purchased the alternative fuel vehicle or qualified conversion equipment.
D. That portion of the alternative fuel vehicle income tax credit approved by the department that exceeds a taxpayer's income tax liability in the taxable year in which the credit is claimed shall not be refunded to the taxpayer. The credit may be carried forward for three consecutive years. The credit shall not be transferred to another taxpayer.
E. A husband and wife filing separate returns for a taxable year for which they could have filed a joint return may each claim only one-half of the alternative fuel vehicle income tax credit that would have been claimed on a joint return.
F. A taxpayer who otherwise qualifies and claims an alternative fuel vehicle income tax credit in New Mexico that may be claimed by a partnership or limited liability company of which the taxpayer is a member may claim a credit only in the proportion to the taxpayer's interest in the partnership or limited liability company. The total credit claimed by all members of the partnership or limited liability company shall not exceed the allowable credit pursuant to Subsection A of this section.
G. The taxpayer shall submit an application to the energy, minerals and natural resources department that identifies the property that qualifies the taxpayer for the alternative fuel vehicle income tax credit by vehicle identification number, serial number or other identification as determined by the energy, minerals and natural resources department, the purchase price and any additional information that the energy, minerals and natural resources department may require to determine the eligibility of the taxpayer for the credit.
H. The energy, minerals and natural resources department shall adopt rules establishing procedures to certify a taxpayer for the purposes of obtaining an alternative fuel vehicle income tax credit. The rules shall ensure that a taxpayer claims the credit in an amount based on the cost basis or purchase price and that the credit is given only once per alternative fuel vehicle or qualified conversion equipment. The energy, minerals and natural resources department shall issue a dated certificate of eligibility containing the taxpayer's information, the amount of alternative fuel vehicle income tax credit for which the taxpayer is eligible, the vehicle identification number or other number as applicable and any other information required by the taxation and revenue department. All certificates of eligibility issued pursuant to this subsection shall be sequentially numbered, and an account of all certificates issued or destroyed shall be maintained by the energy, minerals and natural resources department. The taxation and revenue department shall audit the records of the alternative fuel vehicle income tax credit maintained by the energy, minerals and natural resources department on a periodic basis to ensure effective administration of the credit and compliance with the Tax Administration Act and with this section.
I. To claim an alternative fuel vehicle income tax credit, the taxpayer shall provide to the taxation and revenue department the certificate of eligibility issued by the energy, minerals and natural resources department pursuant to this section to the taxpayer for the taxable year in which the alternative fuel vehicle income tax credit is claimed.
J. The taxation and revenue department shall compile an annual report that includes the number of taxpayers approved by the department to receive an alternative fuel vehicle income tax credit. Notwithstanding any other section of law to the contrary, the department may disclose the number of applicants for the credit, the amount of each credit approved, the number of vehicles purchased or converted, the annual aggregate amount of credits allowed and information to aid in evaluating the effectiveness of the alternative fuel vehicle income tax credit to the interim revenue stabilization and tax policy committee.
K. An appropriate legislative committee shall review the effectiveness of the alternative fuel vehicle income tax credit in 2015.
L. As used in this section:
(1) "alternative fuel vehicle" means a motor vehicle originally equipped so that the motor vehicle may be propelled by electricity, a hydrogen fuel cell, compressed natural gas, liquefied natural gas or liquefied petroleum gas;
(2) "cost basis" means:
(a) the portion of the purchase price of an alternative fuel vehicle that is attributable to the storage, delivery, combustion and exhaust systems of electricity; a hydrogen fuel cell; compressed natural gas; liquefied natural gas; or liquefied petroleum gas; provided that the cost basis for an alternative fuel vehicle that is propelled entirely by electricity shall be the entire purchase price; or
(b) if the taxpayer is unable or elects not to determine the exact portion of the purchase price pursuant to Subparagraph (a) of this paragraph, the lesser of: 1) twenty percent of the purchase price; or 2) three thousand dollars ($3,000);
(3) "motor vehicle" means a vehicle originally designed by the manufacturer to operate lawfully and principally on streets and highways; and
(4) "qualified conversion equipment" means new and not previously used equipment installed to modify a motor vehicle propelled by gasoline or diesel fuel so that the motor vehicle may be propelled by electricity, a hydrogen fuel cell, compressed natural gas, liquefied natural gas or liquefied petroleum gas."
SECTION 2. A new section of the Income Tax Act is enacted to read:
"[NEW MATERIAL] ALTERNATIVE FUELING STATION INCOME TAX CREDIT.--
A. A taxpayer who files an individual New Mexico income tax return, who is not a dependent of another individual and who, on or after July 1, 2013 and prior to July 1, 2016, makes an investment in alternative fueling infrastructure may claim a credit in an amount provided pursuant to Subsection B of this section. The credit provided in this section may be referred to as the "alternative fueling station income tax credit".
B. A taxpayer may claim a credit for a:
(1) residential alternative fueling station in an amount equal to the lesser of:
(a) fifty percent of the cost to purchase and install the residential alternative fueling station; or
(b) two thousand five hundred dollars ($2,500); and
(2) commercial alternative fueling station in an amount equal to seventy-five percent of the cost to purchase and install a commercial alternative fueling station.
C. The purpose of the alternative fueling station income tax credit is to encourage mainstream transition to the use of alternative fuels in motor vehicles and reduce the use of gasoline or diesel fuel.
D. A taxpayer may claim the alternative fueling station income tax credit in the taxable year in which the taxpayer installs a residential alternative fueling station or commercial alternative fueling station. The taxpayer shall claim the credit within one year following the end of the calendar year in which the taxpayer installed the alternative fueling station.
E. That portion of the alternative fueling station income tax credit approved by the department that exceeds a taxpayer's income tax liability in the taxable year in which the credit is claimed shall not be refunded to the taxpayer. The credit may be carried forward for three consecutive years. The credit shall not be transferred to another taxpayer.
F. A husband and wife filing separate returns for a taxable year for which they could have filed a joint return may each claim only one-half of the alternative fueling station income tax credit that would have been claimed on a joint return.
G. A taxpayer who otherwise qualifies and claims an alternative fueling station income tax credit in New Mexico that may be claimed by a partnership or limited liability company of which the taxpayer is a member may claim a credit only in proportion to the taxpayer's interest in the partnership or limited liability company. The total credit claimed by all members of the partnership or limited liability company shall not exceed the allowable credit pursuant to Subsection B of this section.
H. The taxpayer shall submit an application to the energy, minerals and natural resources department that identifies the property that qualifies the taxpayer for the alternative fueling station income tax credit by serial number or other identification as determined by the energy, minerals and natural resources department, the cost of installation and any additional information that the energy, minerals and natural resources department may require to determine the eligibility of the taxpayer for the credit.
I. The energy, minerals and natural resources department shall adopt rules establishing procedures to certify a taxpayer for the purposes of obtaining an alternative fueling station income tax credit. The rules shall ensure that a taxpayer claims the credit in an amount based on the total cost to purchase and install an alternative fueling station, that the credit is given only once per station or for equipment of the station. The energy, minerals and natural resources department shall issue a dated certificate of eligibility containing the taxpayer's information, the amount of alternative fueling station income tax credit for which the taxpayer is eligible, the serial number or identification as applicable and any other information required by the taxation and revenue department. All certificates of eligibility issued pursuant to this subsection shall be sequentially numbered, and an account of all certificates issued or destroyed shall be maintained by the energy, minerals and natural resources department. The taxation and revenue department shall audit the records of the alternative fueling station income tax credit maintained by the energy, minerals and natural resources department on a periodic basis to ensure effective administration of the credit and compliance with the Tax Administration Act and with this section.
J. To claim an alternative fueling station income tax credit, the taxpayer shall provide to the taxation and revenue department the certificate of eligibility issued by the energy, minerals and natural resources department pursuant to this section to the taxpayer for the taxable year in which the alternative fueling station income tax credit is claimed.
K. The taxation and revenue department shall compile an annual report that includes the number of taxpayers approved by the department to receive an alternative fueling station income tax credit. Notwithstanding any other section of law to the contrary, the department may disclose the number of applicants for the credit, the amount of each credit approved, the number of alternative fueling stations installed, the annual aggregate amount of credits allowed and information to aid in evaluating the effectiveness of the alternative fueling station income tax credit to the interim revenue stabilization and tax policy committee.
L. An appropriate legislative committee shall review the effectiveness of the alternative fueling station income tax credit in 2015.
M. As used in this section:
(1) "commercial alternative fueling station" means tangible property that is new, not previously installed or used to fuel or charge a motor vehicle and is:
(a) directly related to and used exclusively for the storage or delivery of compressed natural gas, liquified natural gas, liquified petroleum gas or hydrogen to be loaded into the fuel tank of a motor vehicle propelled by that fuel and that has at least one metered-for-fee public access refueling system; or
(b) a metered-for-fee public access recharging system for a motor vehicle propelled in whole or in part by electricity; and
(2) "residential alternative fueling station" means tangible property that is new, not previously installed or used to fuel a motor vehicle and is directly related to the compression and delivery of natural gas from the taxpayer's private residence into the fuel tank of a motor vehicle propelled by compressed natural gas."
SECTION 3. A new section of the Corporate Income and Franchise Tax Act is enacted to read:
"[NEW MATERIAL] ALTERNATIVE FUEL VEHICLE CORPORATE INCOME TAX CREDIT.--
A. A taxpayer that files a New Mexico corporate income tax return and that, on or after July 1, 2013 and prior to July 1, 2016, purchases an alternative fuel vehicle or qualified conversion equipment may claim a credit in an amount not to exceed fifty percent of the cost basis of the alternative fuel vehicle or of the purchase price of the qualified conversion equipment. The credit provided in this section may be referred to as the "alternative fuel vehicle corporate income tax credit".
B. The purpose of the alternative fuel vehicle corporate income tax credit is to encourage mainstream transition to the use of alternative fuels in motor vehicles and reduce the use of gasoline or diesel fuel.
C. A taxpayer may claim the alternative fuel vehicle corporate income tax credit in the taxable year in which the taxpayer purchases the alternative fuel vehicle or qualified conversion equipment. The taxpayer shall claim the credit within one year following the end of the calendar year in which the taxpayer purchased the alternative fuel vehicle or qualified conversion equipment.
D. That portion of the alternative fuel vehicle corporate income tax credit approved by the department that exceeds a taxpayer's corporate income tax liability in the taxable year in which the credit is claimed shall not be refunded to the taxpayer. The credit may be carried forward for three consecutive years. The credit shall not be transferred to another taxpayer.
E. The taxpayer shall submit an application to the energy, minerals and natural resources department that identifies the property that qualifies the taxpayer for the alternative fuel vehicle corporate income tax credit by vehicle identification number, serial number or other identification as determined by the energy, minerals and natural resources department, the purchase price and any additional information that the energy, minerals and natural resources department may require to determine the eligibility of the taxpayer for the credit.
F. The energy, minerals and natural resources department shall adopt rules establishing procedures to certify a taxpayer for the purposes of obtaining an alternative fuel vehicle corporate income tax credit. The rules shall ensure that a taxpayer claims the credit in an amount based on the cost basis or purchase price and that the credit is given only once per alternative fuel vehicle or qualified conversion equipment. The energy, minerals and natural resources department shall issue a dated certificate of eligibility containing the taxpayer's information, the amount of alternative fuel vehicle income tax credit for which the taxpayer is eligible, the vehicle identification number or other number as applicable and any other information required by the taxation and revenue department. All certificates of eligibility issued pursuant to this subsection shall be sequentially numbered, and an account of all certificates issued or destroyed shall be maintained by the energy, minerals and natural resources department. The taxation and revenue department shall audit the records of the alternative fuel vehicle corporate income tax credit maintained by the energy, minerals and natural resources department on a periodic basis to ensure effective administration of the credit and compliance with the Tax Administration Act and with this section.
G. To claim an alternative fuel vehicle corporate income tax credit, the taxpayer shall provide to the taxation and revenue department the certificate of eligibility issued by the energy, minerals and natural resources department pursuant to this section to the taxpayer for the taxable year in which the alternative fuel vehicle corporate income tax credit is claimed.
H. The taxation and revenue department shall compile an annual report that includes the number of taxpayers approved by the department to receive an alternative fuel vehicle corporate income tax credit. Notwithstanding any other section of law to the contrary, the department may disclose the number of applicants for the credit, the amount of each credit approved, the number of vehicles purchased or converted, the annual aggregate amount of credits allowed and information to aid in evaluating the effectiveness of the alternative fuel vehicle corporate income tax credit to the interim revenue stabilization and tax policy committee.
I. An appropriate legislative committee shall review the effectiveness of the alternative fuel vehicle corporate income tax credit in 2015.
J. As used in this section:
(1) "alternative fuel vehicle" means a motor vehicle originally equipped so that the motor vehicle may be propelled by electricity, a hydrogen fuel cell, compressed natural gas, liquefied natural gas or liquefied petroleum gas;
(2) "cost basis" means:
(a) the portion of the purchase price of an alternative fuel vehicle that is attributable to the storage, delivery, combustion and exhaust systems of electricity; a hydrogen fuel cell; compressed natural gas; liquefied natural gas; or liquefied petroleum gas; provided that the cost basis for an alternative fuel vehicle that is propelled entirely by electricity shall be the entire purchase price; or
(b) if the taxpayer is unable or elects not to determine the exact portion of the purchase price pursuant to Subparagraph (a) of this paragraph, the lesser of: 1) twenty percent of the purchase price; or 2) three thousand dollars ($3,000);
(3) "motor vehicle" means a vehicle originally designed by the manufacturer to operate lawfully and principally on streets and highways; and
(4) "qualified conversion equipment" means new and not previously used equipment installed to modify a motor vehicle propelled by gasoline or diesel fuel so that the motor vehicle may be propelled by electricity, a hydrogen fuel cell, compressed natural gas, liquefied natural gas or liquefied petroleum gas."
SECTION 4. A new section of the Corporate Income and Franchise Tax Act is enacted to read:
"[NEW MATERIAL] ALTERNATIVE FUELING STATION CORPORATE INCOME TAX CREDIT.--
A. A taxpayer that files a New Mexico corporate income tax return and that, on or after July 1, 2013 and prior to July 1, 2016, makes an investment in alternative fueling infrastructure may claim a credit in an amount provided pursuant to Subsection B of this section. The credit provided in this section may be referred to as the "alternative fueling station corporate income tax credit".
B. A taxpayer may claim a credit for a commercial alternative fueling station in an amount equal to seventy-five percent of the cost to purchase and install the commercial alternative fueling station.
C. The purpose of the alternative fueling station corporate income tax credit is to encourage mainstream transition to the use of alternative fuels in motor vehicles and reduce the use of gasoline or diesel fuel.
D. A taxpayer may claim the alternative fueling station corporate income tax credit in the taxable year in which the taxpayer installs a commercial alternative fueling station. The taxpayer shall claim the credit within one year following the end of the calendar year in which the taxpayer installed the commercial alternative fueling station.
E. That portion of the alternative fueling station corporate income tax credit approved by the department that exceeds a taxpayer's corporate income tax liability in the taxable year in which the credit is claimed shall not be refunded to the taxpayer. The credit may be carried forward for three consecutive years. The credit shall not be transferred to another taxpayer.
F. The taxpayer shall submit an application to the energy, minerals and natural resources department that identifies the property that qualifies the taxpayer for the alternative fueling station corporate income tax credit by serial number or other identification as determined by the energy, minerals and natural resources department, the cost of installation and any additional information that the energy, minerals and natural resources department may require to determine the eligibility of the taxpayer for the credit.
G. The energy, minerals and natural resources department shall adopt rules establishing procedures to certify a taxpayer for the purposes of obtaining an alternative fueling station corporate income tax credit. The rules shall ensure that a taxpayer claims the credit in an amount based on the total cost to purchase and install a commercial alternative fueling station and that the credit is given only once per station or for equipment of the station. The energy, minerals and natural resources department shall issue a dated certificate of eligibility containing the taxpayer's information, the amount of alternative fueling station corporate income tax credit for which the taxpayer is eligible, the property serial number or identification as applicable and any other information required by the taxation and revenue department. All certificates of eligibility issued pursuant to this subsection shall be sequentially numbered, and an account of all certificates issued or destroyed shall be maintained by the energy, minerals and natural resources department. The taxation and revenue department shall audit the records of the alternative fueling station corporate income tax credit maintained by the energy, minerals and natural resources department on a periodic basis to ensure effective administration of the credit and compliance with the Tax Administration Act and with this section.
H. To claim an alternative fueling station corporate income tax credit, the taxpayer shall provide to the taxation and revenue department the certificate of eligibility issued by the energy, minerals and natural resources department pursuant to this section to the taxpayer for the taxable year in which the alternative fueling station corporate income tax credit is claimed.
I. The taxation and revenue department shall compile an annual report that includes the number of taxpayers approved by the department to receive an commercial alternative fueling station corporate income tax credit. Notwithstanding any other section of law to the contrary, the department may disclose the number of applicants for the credit, the amount of each credit approved, the number of alternative fueling stations installed, the annual aggregate amount of credits allowed and information to aid in evaluating the effectiveness of the alternative fueling station corporate income tax credit to the interim revenue stabilization and tax policy committee.
J. An appropriate legislative committee shall review the effectiveness of the alternative fuel vehicle corporate income tax credit in 2015.
K. As used in this section, "commercial alternative fueling station" means tangible property that is new, not previously installed or used to fuel or charge a motor vehicle and is:
(1) directly related to and used exclusively for the storage or delivery of compressed natural gas, liquified natural gas, liquified petroleum gas or hydrogen to be loaded into the fuel tank of a motor vehicle propelled by that fuel and that has at least one metered-for-fee public access refueling system; or
(2) a metered-for-fee public access recharging system for a motor vehicle propelled in whole or in part by electricity."
SECTION 5. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2013.
SECTION 6. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2013.
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