Bill Text: MS SB2100 | 2015 | Regular Session | Introduced

Mississippi Senate Bill 2100 (Prior Session Legislation)

Introduced

Bill Title: Income tax; authorize a credit for the cost of certain alternative fuel motor vehicles.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2015-02-25 - Died In Committee [SB2100 Detail]

Download: Mississippi-2015-SB2100-Introduced.html

MISSISSIPPI LEGISLATURE

2015 Regular Session

To: Finance

By: Senator(s) Burton

Senate Bill 2100

AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR THE COST OF PURCHASING MOTOR VEHICLES THAT UTILIZE CERTAIN ALTERNATIVE FUELS AND FOR THE COST OF CONVERTING MOTOR VEHICLES TO UTILIZE CERTAIN ALTERNATIVE FUELS; TO PROVIDE THAT THE CREDIT SHALL BE AN AMOUNT EQUAL TO 50% OF THE COST OR $5,000.00 PER MOTOR VEHICLE, WHICHEVER IS LESS; TO PROVIDE THAT ANY SUCH TAX CREDIT CLAIMED BUT NOT USED IN ANY TAXABLE YEAR MAY BE CARRIED FORWARD FOR 10 CONSECUTIVE TAX YEARS FROM THE CLOSE OF THE TAX YEAR IN WHICH THE CREDIT WAS EARNED; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) As used in this section:

(a) "Alternative fuel" means compressed natural gas and liquefied natural gas, as defined in Section 27-59-3, propane and hydrogen fuel cell fuel when used as a fuel in a motor vehicle or motor vehicles on the highways of the state.

(b) "Conversion kit" means the fuel system equipment necessary in order to retrofit a motor vehicle propelled by gasoline, diesel or other fuel so that the motor vehicle may be converted or modified into an alternative fuel motor vehicle.

(i) The actual cost per vehicle paid by the owner of a motor vehicle for the purchase and installation by a licensed installer of qualified alternative fuel motor vehicle fuel property described in paragraph (j)(i) of this subsection, provided the motor vehicle is registered in this state; or

(ii) The incremental cost per vehicle paid by the owner upon the purchase of an OEM alternative fuel motor vehicle for the qualified alternative fuel motor vehicle fuel property (including installation) described in paragraph (j)(ii) of this subsection.

(d) "Incremental cost" means:

(i) The stated MSRP of the fuel system equipment and its installation for an OEM alternative fuel motor vehicle; or

(ii) If no separate MSRP is stated, the difference between the MSRP of the OEM alternative fuel motor vehicle and the MSRP of the same make and model of motor vehicle manufactured without the fuel system equipment but otherwise identically equipped.

When an OEM alternative fuel motor vehicle is sold for less (or more) than its MSRP, the amount determined in subparagraph (i) or (ii) of this paragraph (d) shall be proportionately reduced (or increased) by the same percentage as the discount (or premium) on the MSRP, as applicable.

(e) "Licensed installer" has the meaning ascribed to such term in Section 27-59-3, as licensed under Section 27-59-11(8).

(f) "OEM alternative fuel motor vehicle" means an alternative fuel motor vehicle manufactured by the original vehicle manufacturer (or its contractor) with the fuel system equipment installed as original equipment by the manufacturer (or its contractor) at the factory or at another installation site approved by the manufacturer (or its contractor).

(g) "Motor vehicle" shall have the meaning ascribed to such term in Section 27-59-3.

(h) "MSRP" means manufacturer's suggested retail price.

(i) "Alternative fuel motor vehicle" means a motor vehicle propelled by alternative fuel either as a dedicated alternative fuel vehicle, as a bi-fuel vehicle using alternative fuel as one of its fuels, or as a dual fuel vehicle using alternative fuel as one of its fuels.

(j) "Qualified alternative fuel motor vehicle fuel property" means any of the following:

(i) A conversion kit which has not previously been used to retrofit any motor vehicle, is installed by a licensed installer, and results in a reduction in emissions.

(ii) The fuel system equipment on an OEM alternative fuel motor vehicle which results in a reduction in emissions.

(k) "Retrofit" means the installation of a conversion kit in a motor vehicle designed to operate on gasoline, diesel or other fuel in order to convert or modify such motor vehicle into an alternative fuel motor vehicle.

(2) A taxpayer shall be allowed a credit for taxes imposed by this chapter in an amount equal to fifty percent (50%) of the cost of qualified alternative fuel motor vehicle property incurred by the taxpayer or Five Thousand Dollars ($5,000.00) per motor vehicle, whichever is less. The tax credit provided for in this section shall be allowed only once per alternative fuel motor vehicle for the taxable year in which the qualified alternative fuel motor vehicle fuel property is placed into service in order that the property constituting such items which have previously received a tax credit under this section shall not be entitled to multiple credits.

(3) The tax credit authorized in this section shall be applied against the taxpayer's income tax liability after all other credits provided by this chapter to the taxpayer have been applied.

(4) No tax credit shall be allowed under this section with respect to the cost of any qualified alternative fuel motor vehicle fuel property for which any credit under this or any other section of this chapter has previously been allowed.

(5) The tax credit shall be claimed on the state income tax return filed for the taxable year for which the tax credit is allowed, which return shall contain, at a minimum, the following proof of qualification for the tax credit:

(a) Registration of the alternative fuel motor vehicle in the state and the date placed into service; or

(b) The incremental cost of the purchase of an OEM alternative fuel motor vehicle; or

(c) The purchase and installation cost of a conversion kit by a licensed installer, the date placed into service, and the cost thereof.

(6) Any tax credit claimed under this section but not used in any taxable year may be carried forward for ten (10) consecutive tax years from the close of the tax year in which the credit was earned.

(7) A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half (1/2) of the tax credit that would otherwise have been allowed for a joint return.

(8) Not-for-profit entities, including, but not limited to, nonprofit corporations organized under Section 79-11-101 et seq. shall not be eligible for the tax credit authorized by this section.

(9) Tax credits allowable to a partnership, a limited liability company taxed as a partnership or any other entity treated as a pass-through entity under this chapter shall be passed through to the partners, members or other owners on a pro rata basis or pursuant to an executed agreement among the partners, members or other owners documenting an alternative distribution method.

SECTION 2. Section 1 of this act shall be codified in Chapter 7, Title 27, Mississippi Code of 1972.

SECTION 3. This act shall take effect and be in force from and after January 1, 2015.