Bill Text: NJ S2866 | 2024-2025 | Regular Session | Introduced
Bill Title: Provides corporation business tax credits and gross income tax credits for purchase of certain hydrogen fuel cell vehicles.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-03-04 - Introduced in the Senate, Referred to Senate Environment and Energy Committee [S2866 Detail]
Download: New_Jersey-2024-S2866-Introduced.html
Sponsored by:
Senator BRIAN P. STACK
District 33 (Hudson)
SYNOPSIS
Provides corporation business tax credits and gross income tax credits for purchase of certain hydrogen fuel cell vehicles.
CURRENT VERSION OF TEXT
As introduced.
An Act providing corporation business tax credits and gross income tax credits for the purchase of certain hydrogen fuel cell vehicles, and supplementing P.L.1945, c.162 (C.54:10A-1 et seq.) and Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section:
"Hydrogen fuel cell vehicle" means a motor vehicle that is propelled by power derived from one or more cells that convert chemical energy directly into electricity by combining oxygen with hydrogen fuel.
b. (1) For the taxpayer's privilege period beginning in calendar year 2023, a taxpayer shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for the amount paid during the privilege period to purchase a hydrogen fuel cell vehicle which is used directly and exclusively by the taxpayer in the taxpayer's business, trade, or occupation. The credit allowed pursuant to this paragraph shall be 25 percent of the amount paid to purchase a hydrogen fuel cell vehicle, up to $15,000 per vehicle.
(2) For the taxpayer's privilege period beginning in calendar year 2024, a taxpayer shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for the amount paid during the privilege period to purchase a hydrogen fuel cell vehicle which is used directly and exclusively by the taxpayer in the taxpayer's business, trade, or occupation. The credit allowed pursuant to this paragraph shall be 15 percent of the amount paid to purchase a hydrogen fuel cell vehicle, up to $9,000 per vehicle.
(3) For the taxpayer's privilege period beginning in calendar year 2025, a taxpayer shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for the amount paid during the privilege period to purchase a hydrogen fuel cell vehicle which is used directly and exclusively by the taxpayer in the taxpayer's business, trade, or occupation. The credit allowed pursuant to this paragraph shall be eight percent of the amount paid to purchase a hydrogen fuel cell vehicle, up to $5,000 per vehicle.
c. (1) To qualify for the tax credit allowed pursuant to this section, the taxpayer shall file an application for a certification from the Commissioner of Environmental Protection that the vehicle purchased by the taxpayer qualifies as a hydrogen fuel cell vehicle. The certification shall specifically indicate the date of purchase of the vehicle, a description of the vehicle, and the amount paid for the vehicle. The commissioner shall prescribe the form for the application and certification and may require the submission of supplemental materials with an application, including but not limited to a copy of the receipt of purchase.
(2) The Commissioner of Environmental Protection shall have 90 days from the date of receipt of a complete application to make a determination as to the issuance of a certification.
(3) Upon certification, the Commissioner of Environmental Protection shall submit a copy thereof to the taxpayer and the Director of the Division of Taxation. In filing a tax return that includes a claim for the credit allowed pursuant to this section, the taxpayer shall include a copy of the certification.
d. The amount of the credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), for a privilege period, when taken together with any other credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), shall not exceed 50 percent of the tax liability otherwise due and shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5). The priority in which credits allowed pursuant to this section and any other credits shall be taken shall be as determined by the Director of the Division of Taxation. The amount of the credit otherwise allowable under this section which cannot be applied for the privilege period due to the limitations of this subsection or under other provisions of P.L.1945, c.162 (C.54:10A-5 et seq.) may be carried over, if necessary, to the seven privilege periods following the privilege period for which the credit was allowed.
2. a. As used in this section:
"Hydrogen fuel cell vehicle" means a motor vehicle that is propelled by power derived from one or more cells that convert chemical energy directly into electricity by combining oxygen with hydrogen fuel.
b. (1) For the taxpayer's privilege period beginning in calendar year 2023, a taxpayer shall be allowed a credit against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for the amount paid during the privilege period to purchase a hydrogen fuel cell vehicle. The credit allowed pursuant to this paragraph shall be 25 percent of the amount paid to purchase a hydrogen fuel cell vehicle, up to $15,000 per vehicle.
(2) For the taxpayer's privilege period beginning in calendar year 2024, a taxpayer shall be allowed a credit against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for the amount paid during the privilege period to purchase a hydrogen fuel cell vehicle. The credit allowed pursuant to this paragraph shall be 15 percent of the amount paid to purchase a hydrogen fuel cell vehicle, up to $9,000 per vehicle.
(3) For the taxpayer's privilege period beginning in calendar year 2025, a taxpayer shall be allowed a credit against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for the amount paid during the privilege period to purchase a hydrogen fuel cell vehicle. The credit allowed pursuant to this paragraph shall be eight percent of the amount paid to purchase a hydrogen fuel cell vehicle, up to $5,000 per vehicle.
c. (1) To qualify for the tax credit allowed pursuant to this section, the taxpayer shall file an application for a certification from the Commissioner of Environmental Protection that the vehicle purchased by the taxpayer qualifies as a hydrogen fuel cell vehicle. The certification shall specifically indicate the date of purchase of the vehicle, a description of the vehicle, and the amount paid for the vehicle. The commissioner shall prescribe the form for the application and certification and may require the submission of supplemental materials with an application, including but not limited to a copy of the receipt of purchase.
(2) The Commissioner of Environmental Protection shall have 90 days from the date of receipt of a complete application to make a determination as to the issuance of a certification.
(3) Upon certification, the Commissioner of Environmental Protection shall submit a copy thereof to the taxpayer and the Director of the Division of Taxation. In filing a tax return that includes a claim for the credit allowed pursuant to this section, the taxpayer shall include a copy of the certification.
d. No taxpayer shall be allowed more than one credit pursuant to this section per taxable year, except that a taxpayer filing a joint return shall be allowed no more than two credits pursuant to this section per taxable year.
3. a. As used in this section:
"Hydrogen fuel cell vehicle" means a motor vehicle that is propelled by power derived from one or more cells that convert chemical energy directly into electricity by combining oxygen with hydrogen fuel.
b. (1) For the taxpayer's privilege period beginning in calendar year 2023, a taxpayer operating a business as a sole proprietor or through a partnership shall be allowed a credit against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for the amount paid during the privilege period to purchase a hydrogen fuel cell vehicle which is used directly and exclusively by the taxpayer in the taxpayer's business, trade, or occupation. The credit allowed pursuant to this paragraph shall be 25 percent of the amount paid to purchase a hydrogen fuel cell vehicle, up to $15,000 per vehicle.
(2) For the taxpayer's privilege period beginning in calendar year 2024, a taxpayer operating a business as a sole proprietor or through a partnership shall be allowed a credit against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for the amount paid during the privilege period to purchase a hydrogen fuel cell vehicle which is used directly and exclusively by the taxpayer in the taxpayer's business, trade, or occupation. The credit allowed pursuant to this paragraph shall be 15 percent of the amount paid to purchase a hydrogen fuel cell vehicle, up to $9,000 per vehicle.
(3) For the taxpayer's privilege period beginning in calendar year 2025, a taxpayer operating a business as a sole proprietor or through a partnership shall be allowed a credit against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for the amount paid during the privilege period to purchase a hydrogen fuel cell vehicle which is used directly and exclusively by the taxpayer in the taxpayer's business, trade, or occupation. The credit allowed pursuant to this paragraph shall be eight percent of the amount paid to purchase a hydrogen fuel cell vehicle, up to $5,000 per vehicle.
c. (1) To qualify for the tax credit allowed pursuant to this section, the taxpayer shall file an application for a certification from the Commissioner of Environmental Protection that the vehicle purchased by the taxpayer qualifies as a hydrogen fuel cell vehicle. The certification shall specifically indicate the date of purchase of the vehicle, a description of the vehicle, and the amount paid for the vehicle. The commissioner shall prescribe the form for the application and certification and may require the submission of supplemental materials with an application, including but not limited to a copy of the receipt of purchase.
(2) The Commissioner of Environmental Protection shall have 90 days from the date of receipt of a complete application to make a determination as to the issuance of a certification.
(3) Upon certification, the Commissioner of Environmental Protection shall submit a copy thereof to the taxpayer and the Director of the Division of Taxation. In filing a tax return that includes a claim for the credit allowed pursuant to this section, the taxpayer shall include a copy of the certification.
d. The amount of the credit applied under this section against the tax imposed pursuant to the "New Jersey Gross Income Tax Act" N.J.S.54A:1-1 et seq., for a taxable year, when taken together with any other credits allowed against the tax imposed pursuant to the "New Jersey Gross Income Tax Act", shall not exceed 50 percent of the tax liability otherwise due. The priority in which credits allowed pursuant to this section and any other credits shall be taken shall be as determined by the Director of the Division of Taxation.
e. A partnership shall not be allowed a credit under this section directly, but the amount of credit of a taxpayer in respect of a distributive share of partnership income under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., shall be determined by allocating to the taxpayer that proportion of the credit that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the partnership for its taxable year ending within or with the taxpayer's taxable year.
4. This act shall take effect immediately.
STATEMENT
This bill provides corporation business tax credits and gross income tax credits for the purchase of certain hydrogen fuel cell vehicles. The credits are available to both businesses and individuals.
The credits are available for the taxpayer tax periods beginning in calendar years 2023, 2024 and 2025. For hydrogen fuel cell vehicles purchased in 2023 tax periods, a taxpayer will be allowed a credit in an amount of 25 percent of the cost, up to $15,000 per vehicle. For vehicles purchased and installed in 2024 tax periods, the credit is 15 percent of the cost, up to $9,000 per vehicle. For a vehicle purchased and installed in 2025 tax periods, the credit is eight percent of the cost, up to $5,000 per vehicle. To qualify for the bill's tax credits, the taxpayer must file an application for a certification with the Commissioner of Environmental Protection that the hydrogen fuel cell vehicle purchased by the taxpayer is a qualified hydrogen fuel cell vehicle.
Hydrogen fuel cell vehicles are electrically powered and they produce only water vapor as an emission. Hydrogen fuel cell vehicles typically have a longer range than battery-powered electric vehicles and they can be refueled in approximately the same time and manner as a gasoline-powered vehicle. This bill would encourage New Jersey businesses to purchase hydrogen fuel cell vehicles by defraying their purchase costs.
