SENATE FINANCE COMMITTEE SUBSTITUTE FOR
SENATE BILL 264
51st legislature - STATE OF NEW MEXICO - first session, 2013
AN ACT
RELATING TO TAXATION; CREATING AN ELECTRIC VEHICLE INCOME TAX CREDIT FOR QUALIFIED ELECTRIC VEHICLES UNTIL 2018.
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] ELECTRIC VEHICLE INCOME TAX CREDIT.--
A. Until July 1, 2018, a taxpayer who is not a dependent of another individual and who purchases a qualified electric vehicle is eligible for a credit against the taxpayer's tax liability imposed pursuant to the Income Tax Act in the amount of one thousand three hundred twenty dollars ($1,320). The tax credit provided by this section may be referred to as the "electric vehicle income tax credit".
B. The purpose of the electric vehicle income tax credit is to encourage consumers to purchase qualified electric vehicles that may help to decrease the presence of greenhouse gas, carbon monoxide and ozone precursor emissions in the environment.
C. Subject to the limitation in Subsection D of this section, a taxpayer may claim the electric vehicle income tax credit provided in this section for each taxable year in which the taxpayer purchases a qualified electric vehicle.
D. The aggregate amount of electric vehicle income tax credit claims that may be authorized for payment in any fiscal year is two million dollars ($2,000,000). The date a claim for an electric vehicle income tax credit is received by the department shall determine the order that a tax credit claim is authorized for payment by the department.
E. That portion of an electric vehicle income tax credit approved by the department that exceeds a taxpayer's income tax liability in the taxable year in which an electric vehicle income tax credit is claimed shall be refunded to the 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 electric vehicle income tax credit that would have been claimed on a joint return.
G. A taxpayer may be allocated the right to claim an electric vehicle income tax credit in proportion to the taxpayer's ownership interest if the taxpayer owns an interest in a business entity that is taxed for federal income tax purposes as a partnership and that business entity has met all of the requirements to be eligible for the credit. 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.
H. A taxpayer shall submit to the department information required by the department with respect to the purchase of a qualified electric vehicle by the taxpayer during the taxable year for which the electric vehicle income tax credit is claimed.
I. A taxpayer allowed an electric vehicle income tax credit shall report the amount of the tax credit to the department in a manner required by the department.
J. The department shall compile an annual report on the electric vehicle income tax credit that shall include the number of taxpayers approved by the department to receive the tax credit, the aggregate amount of tax credits approved and any other information necessary to evaluate the effectiveness of the tax credit. Beginning in 2017 and every five years thereafter, the department shall compile and present the annual reports to the revenue stabilization and tax policy committee and the legislative finance committee, with an analysis of the effectiveness and cost of the tax credit and of whether the tax credit is performing the purpose for which it was created.
K. The department shall adopt rules establishing procedures to certify the purchase of a qualified electric vehicle for purposes of obtaining an electric vehicle income tax credit.
L. As used in this section, "qualified electric vehicle" means a motor vehicle with four wheels that:
(1) is made by a manufacturer;
(2) is manufactured primarily for use on public streets, roads or highways;
(3) has not been modified from the original manufacturer specifications;
(4) is purchased by a consumer from a dealer for the first time after delivery from the manufacturer to the dealer;
(5) is rated at not less than two thousand two hundred pounds unloaded base weight and not more than eight thousand five hundred pounds unloaded base weight;
(6) has a maximum speed capability of at least sixty-five miles per hour; and
(7) is propelled to a significant extent by an electric motor that draws electricity from a battery that:
(a) has a capacity of not less than four kilowatt-hours; and
(b) is capable of being recharged from an external source of electricity."
SECTION 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2013.
SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2013.
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