Bill Text: MN HF2888 | 2013-2014 | 88th Legislature | Introduced


Bill Title: Individual income and corporate franchise tax credit provided for natural gas vehicles and home fueling systems, and money appropriated.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2014-03-19 - Author added Clark [HF2888 Detail]

Download: Minnesota-2013-HF2888-Introduced.html

1.1A bill for an act
1.2relating to taxation; individual income and corporate franchise; providing a
1.3credit for natural gas vehicles and home fueling systems; appropriating money;
1.4proposing coding for new law in Minnesota Statutes, chapter 290.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. [290.0693] NATURAL GAS VEHICLE AND FUELING SYSTEM
1.7CREDIT.
1.8    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
1.9have the meanings given.
1.10(b) "Home fueling system" means a system intended for use in the taxpayer's
1.11residence or place of business for the purpose of fueling natural gas vehicles.
1.12(c) "Incremental cost" means the difference between the cost of a natural gas vehicle
1.13and the cost of the same or similar motor vehicle, manufactured to operate exclusively
1.14on gasoline or diesel fuel.
1.15(d) "Natural gas vehicle" means a motor vehicle capable of using compressed
1.16natural gas or liquefied natural gas as a motor fuel, including but not limited to a flexible
1.17fuel vehicle.
1.18    Subd. 2. Credit allowed. (a) A taxpayer who purchases a natural gas vehicle,
1.19converts a conventional vehicle to use natural gas, or installs a home fueling system
1.20during the taxable year is eligible for a credit against the tax due under this chapter. The
1.21maximum credit is $8,000. The following expenses are eligible for the credit:
1.22(1) the incremental cost of a natural gas vehicle purchased by the taxpayer;
1.23(2) the amount paid by the taxpayer to convert a conventional vehicle to a natural
1.24gas vehicle; and
2.1(3) the cost of a home fueling system, including installation costs.
2.2(b) Credits granted to a partnership, a limited liability company taxed as a
2.3partnership, S corporation, or multiple owners of property are passed through to the
2.4partners, members, shareholders, or owners, respectively, pro rata to each partner, member,
2.5shareholder, or owner based on the respective share of the entity's assets or as specially
2.6allocated in the organizational documents or any other executed agreement, as of the last
2.7day of the taxable year.
2.8(c) For a nonresident or part-year resident, the credit must be allocated based on the
2.9percentage calculated under section 290.06, subdivision 2c, paragraph (e).
2.10    Subd. 3. Credit refundable; appropriation. (a) If the credit allowed under this
2.11section exceeds the individual's liability under this chapter, the commissioner shall refund
2.12the excess to the taxpayer.
2.13(b) An amount sufficient to pay the refunds required by this section is appropriated
2.14from the general fund to the commissioner.
2.15EFFECTIVE DATE.This section is effective for taxable years beginning after
2.16December 31, 2013.
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