HOUSE BILL 136
51st legislature - STATE OF NEW MEXICO - second session, 2014
INTRODUCED BY
Jim R. Trujillo
AN ACT
RELATING TO TAXATION; CREATING THE ELECTRIC VEHICLE INCOME TAX CREDIT; CREATING THE ELECTRIC VEHICLE CHARGING UNIT INCOME TAX CREDIT AND THE ELECTRIC VEHICLE CHARGING UNIT CORPORATE INCOME TAX CREDIT.
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. Prior to January 1, 2020, a taxpayer who is not a dependent of another individual and who purchases or leases 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 two thousand five hundred dollars ($2,500). 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 or lease 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 or leases 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. Married individuals 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 tax credit claimed by all members of the partnership or limited liability company shall not exceed the allowable tax 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 or lease 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 2018 and every five years thereafter that the tax credit is in effect, 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 or lease 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 or leased 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. A new section of the Income Tax Act is enacted to read:
"[NEW MATERIAL] ELECTRIC VEHICLE CHARGING UNIT INCOME TAX CREDIT.--
A. Prior to January 1, 2020, a taxpayer who is not a dependent of another individual and who purchases and installs an electric vehicle charging unit that has passed inspection by a state-authorized construction-permitting governmental entity may apply for, and the department may allow, a credit against the taxpayer's tax liability imposed pursuant to the Income Tax Act. The tax credit provided by this section may be referred to as the "electric vehicle charging unit income tax credit".
B. The purpose of the electric vehicle charging unit income tax credit is to encourage businesses to purchase and install electric vehicle charging units to provide the infrastructure necessary to support the acceptance of electric vehicles that may help to decrease the presence of greenhouse gas, carbon monoxide and ozone precursor emissions in the environment.
C. The electric vehicle charging unit income tax credit shall not exceed:
(1) three thousand dollars ($3,000) or thirty percent of the cost to purchase and install an electric vehicle charging unit, whichever is less; or
(2) if the electric vehicle charging unit is powered primarily by solar power, five thousand dollars ($5,000) or thirty percent of the cost to purchase and install the electric vehicle charging unit that is powered primarily by solar power, whichever is less.
D. The department may allow a maximum annual aggregate of one million dollars ($1,000,000) in electric vehicle charging unit income tax credits and electric vehicle charging unit corporate income tax credits pursuant to Section 3 of this 2014 act per year. Applications for the tax credit shall be considered in the order received by the department.
E. A taxpayer may claim an electric vehicle charging unit income tax credit in the taxable year in which the taxpayer purchases and installs an electric vehicle charging unit. To receive an electric vehicle charging unit income tax credit, a taxpayer shall submit a completed application to the department on forms and in the manner prescribed by the department; provided that a completed application shall include:
(1) a receipt for the purchase of an electric vehicle charging unit;
(2) a copy of the data sheet that specifies the connector type, plug type, voltage and current of the purchased electric vehicle charging unit; and
(3) a final and approved electrical inspection document issued by the construction industries division of the regulation and licensing department or other state-authorized construction-permitting governmental entity.
F. That portion of an electric vehicle charging unit income tax credit that exceeds a taxpayer's income tax liability in the taxable year in which an electric vehicle charging unit income tax credit is claimed shall be refunded to the taxpayer.
G. Married individuals 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 charging unit income tax credit that would have been claimed on a joint return.
H. A taxpayer may be allocated the right to claim an electric vehicle charging unit 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 tax credit. The total tax credit claimed by all members of the partnership or limited liability company shall not exceed the allowable tax credit pursuant to Subsection C of this section.
I. A taxpayer allowed a tax credit pursuant to this section 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 charging unit 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 2018 and every five years thereafter that the tax credit is in effect, 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 whether the tax credit is performing the purpose for which it was created.
K. As used in this section, "electric vehicle charging unit" means a wall-mounted or pedestal-style device that:
(1) is used to provide electricity to an electric vehicle;
(2) is designed to create a connection between an electric grid and the electric vehicle;
(3) communicates with the electric vehicle's control system to ensure that electricity flows at an appropriate voltage and current level; and
(4) is installed on nonresidential property."
SECTION 3. A new section of the Corporate Income and Franchise Tax Act is enacted to read:
"[NEW MATERIAL] ELECTRIC VEHICLE CHARGING UNIT CORPORATE INCOME TAX CREDIT.--
A. Prior to January 1, 2020, a taxpayer that files a New Mexico corporate income tax return that purchases and installs an electric vehicle charging unit that has passed inspection by a state-authorized construction-permitting governmental entity may apply for, and the department may allow, a credit against the taxpayer's tax liability imposed pursuant to the Corporate Income and Franchise Tax Act. The tax credit provided by this section may be referred to as the "electric vehicle charging unit corporate income tax credit".
B. The purpose of the electric vehicle charging unit corporate income tax credit is to encourage businesses to purchase and install electric vehicle charging units to provide the infrastructure necessary to support the acceptance of electric vehicles that may help to decrease the presence of greenhouse gas, carbon monoxide and ozone precursor emissions in the environment.
C. The electric vehicle charging unit corporate income tax credit shall not exceed:
(1) three thousand dollars ($3,000) or thirty percent of the cost to purchase and install an electric vehicle charging unit, whichever is less; or
(2) if the electric vehicle charging unit is powered primarily by solar power, five thousand dollars ($5,000) or thirty percent of the cost to purchase and install the electric vehicle charging unit that is powered primarily by solar power, whichever is less.
D. The department may allow a maximum annual aggregate of one million dollars ($1,000,000) in electric vehicle charging unit corporate income tax credits and electric vehicle charging unit income tax credits pursuant to Section 2 of this 2014 act per year. Applications for the tax credit shall be considered in the order received by the department.
E. A taxpayer may claim an electric vehicle charging unit corporate income tax credit in the taxable year in which the taxpayer purchases and installs an electric vehicle charging unit. To receive an electric vehicle charging unit corporate income tax credit, a taxpayer shall apply to the department on forms and in the manner prescribed by the department; provided that a completed application shall include:
(1) a receipt for the purchase of an electric vehicle charging unit;
(2) a copy of the data sheet that specifies the connector type, plug type, voltage and current of the purchased electric vehicle charging unit; and
(3) a final and approved electrical inspection document issued by the construction industries division of the regulation and licensing department or other state-authorized construction-permitting governmental entity.
F. That portion of an electric vehicle charging unit corporate income tax credit that exceeds a taxpayer's liability, pursuant to the Corporate Income and Franchise Tax Act, in the taxable year in which an electric vehicle charging unit corporate income tax credit is claimed shall be refunded to the taxpayer.
G. A taxpayer allowed a tax credit pursuant to this section shall report the amount of the tax credit to the department in a manner required by the department.
H. The department shall compile an annual report on the electric vehicle charging unit corporate 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 2018 and every five years thereafter that the tax credit is in effect, 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 whether the tax credit is performing the purpose for which it was created.
I. As used in this section, "electric vehicle charging unit" means a wall-mounted or pedestal-style device that:
(1) is used to provide electricity to an electric vehicle;
(2) is designed to create a connection between an electric grid and the electric vehicle;
(3) communicates with the electric vehicle's control system to ensure that electricity flows at an appropriate voltage and current level; and
(4) is installed on nonresidential property."
SECTION 4. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2014.
- 12 -