Bill Text: NJ A1002 | 2014-2015 | Regular Session | Introduced
Bill Title: Provides corporation business tax credits and gross income tax credits for purchase of certain electric or plug-in hybrid electric vehicles.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Introduced - Dead) 2014-01-16 - Introduced, Referred to Assembly Commerce and Economic Development Committee [A1002 Detail]
Download: New_Jersey-2014-A1002-Introduced.html
STATE OF NEW JERSEY
216th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2014 SESSION
Sponsored by:
Assemblyman DANIEL R. BENSON
District 14 (Mercer and Middlesex)
Assemblyman GILBERT "WHIP" L. WILSON
District 5 (Camden and Gloucester)
Assemblywoman VALERIE VAINIERI HUTTLE
District 37 (Bergen)
Co-Sponsored by:
Assemblymen DeAngelo, Chivukula and Eustace
SYNOPSIS
Provides corporation business tax credits and gross income tax credits for purchase of certain electric or plug-in hybrid electric vehicles.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act providing a corporation business tax credits and gross income tax credits for the purchase of certain electric and plug-in hybrid electric 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. For privilege periods beginning in 2012, 2013, and 2014, 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 an electric vehicle or plug-in hybrid electric vehicle which is used directly and exclusively by the taxpayer in the taxpayer's business, trade, or occupation.
For purchases made in privilege periods beginning in 2012, the credit allowed pursuant to this section shall be in the amount of up to $5,000 for the purchase of an electric vehicle or $3,000 for the purchase of a plug-in hybrid electric vehicle.
For purchases made in privilege periods beginning in 2013, the credit allowed pursuant to this section shall be in the amount of up to $3,000 for the purchase of an electric vehicle or $1,500 for the purchase of a plug-in hybrid electric vehicle.
For purchases made in privilege periods beginning in 2014, the credit allowed pursuant to this section shall be in the amount of up to $2,000 for the purchase of an electric vehicle or $1,000 for the purchase of a plug-in hybrid electric vehicle.
b. (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 electric vehicle or plug-in hybrid electric vehicle purchased by the taxpayer qualifies as an electric vehicle or plug-in hybrid electric 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. 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.
c. The amount of the credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162, 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, shall not exceed 50% 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. 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 may be carried over, if necessary, to the seven privilege periods following the privilege period for which the credit was allowed.
d. As used in this section:
"Electric vehicle" means an on-road motor vehicle that uses a battery to store the electrical energy to power the vehicle's motor, including a battery electric vehicle, and that is charged or recharged from an external source of electricity, such as by plugging the vehicle into an electric power source. An electric vehicle may qualify as a "zero emission vehicle" pursuant to P.L.2003, c.266 (C.26:2C-8.15 et seq.) but shall not include a hybrid electric vehicle.
"Hybrid electric vehicle" means an on-road vehicle powered by conventional or alternative fuels as well as electric power stored in a battery, and the battery is charged through regenerative braking and the internal combustion engine and is not plugged in to charge.
"Plug-in hybrid electric vehicle" means an on-road electric vehicle that is charged or recharged by plugging the vehicle into an electric power source and may also be powered by conventional or alternative fuels in addition to electric power stored in a battery.
2. a. For privilege periods beginning in 2012, 2013, and 2014, 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 an electric truck or electric bus which is used directly and exclusively by the taxpayer in the taxpayer's business, trade, or occupation.
For purchases made in privilege periods beginning in 2012, the credit allowed pursuant to this section shall be in the amount of up to $20,000 for the purchase of an electric truck or electric bus.
For purchases made in privilege periods beginning in 2013, the credit allowed pursuant to this section shall be in the amount of up to $15,000 for the purchase of an electric truck or electric bus.
For purchases made in privilege periods beginning in 2014, the credit allowed pursuant to this section shall be in the amount of up to $10,000 for the purchase of an electric truck or electric bus.
b. (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 electric truck or electric bus purchased by the taxpayer qualifies as an electric truck or electric bus. 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. 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.
c. The amount of the credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162, 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, shall not exceed 50% 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. 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 may be carried over, if necessary, to the seven privilege periods following the privilege period for which the credit was allowed.
d. As used in this section:
"Electric bus" means a bus powered by electricity, or powered by a combination of internal combustion engines and electric propulsion, that is charged or recharged from an external source of electricity, such as by plugging the bus into an electric power source.
"Electric truck" means a truck powered by electricity, or powered by a combination of internal combustion engines and electric propulsion, that is charged or recharged from an external source of electricity, such as by plugging the truck into an electric power source. An electric truck may include a truck with electrically powered accessories, instead of mechanically powered accessories, that rely on electrical power to operate independently of the engine.
3. a. For taxable years beginning in 2012, 2013 and 2014, 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 by the taxpayer during the taxable year to purchase an electric vehicle or plug-in hybrid electric vehicle. 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.
For taxable years beginning in 2012, a taxpayer shall be allowed a credit of up to $5,000 for the amount paid to purchase an electric vehicle or $3,000 for the amount paid to purchase a plug-in hybrid electric vehicle.
For taxable years beginning in 2013, a taxpayer shall be allowed a credit of up to $3,000 for the amount paid to purchase an electric vehicle or $1,500 for the amount paid to purchase a plug-in hybrid electric vehicle.
For taxable years beginning in 2014, a taxpayer shall be allowed a credit of up to $2,000 for the amount paid to purchase an electric vehicle or $1,000 for the amount paid to purchase a plug-in hybrid electric vehicle.
b. (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 electric vehicle or plug-in hybrid electric vehicle purchased by the taxpayer qualifies as an electric vehicle or plug-in hybrid electric 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. 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.
c. As used in this section:
"Electric vehicle" means an on-road motor vehicle that uses a battery to store the electrical energy to power the vehicle's motor, including a battery electric vehicle, and that is charged or recharged from an external source of electricity, such as by plugging the vehicle into an electric power source. An electric vehicle may qualify as a "zero emission vehicle" pursuant to P.L.2003, c.266 (C.26:2C-8.15 et seq.) but shall not include a hybrid electric vehicle.
"Hybrid electric vehicle" means an on-road vehicle powered by conventional or alternative fuels as well as electric power stored in a battery, and the battery is charged through regenerative braking and the internal combustion engine and is not plugged in to charge.
"Plug-in hybrid electric vehicle" means an on-road electric vehicle that is charged or recharged by plugging the vehicle into an electric power source and may also be powered by conventional or alternative fuels in addition to electric power stored in a battery.
4. a. For taxable years beginning in 2012, 2013 and 2014, 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 taxable year to purchase an electric vehicle or plug-in hybrid electric vehicle which is used directly and exclusively by the taxpayer in the taxpayer's business, trade, or occupation.
For purchases made in taxable years beginning in 2012, the credit allowed pursuant to this section shall be in the amount of up to $5,000 for the purchase of an electric vehicle or $3,000 for the purchase of a plug-in hybrid electric vehicle.
For purchases made in taxable years beginning in 2013, the credit allowed pursuant to this section shall be in the amount of up to $3,000 for the purchase of an electric vehicle or $1,500 for the purchase of a plug-in hybrid electric vehicle.
For purchases made in taxable years beginning in 2014, the credit allowed pursuant to this section shall be in the amount of up to $2,000 for the purchase of an electric vehicle or $1,000 for the purchase of a plug-in hybrid electric vehicle.
b. (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 electric vehicle or plug-in hybrid electric vehicle purchased by the taxpayer qualifies as an electric vehicle or plug-in hybrid electric 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. 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.
c. 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% 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.
d. 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.
e. As used in this section:
"Electric vehicle" means an on-road motor vehicle that uses a battery to store the electrical energy to power the vehicle's motor, including a battery electric vehicle, and that is charged or recharged from an external source of electricity, such as by plugging the vehicle into an electric power source. An electric vehicle may qualify as a "zero emission vehicle" pursuant to P.L.2003, c.266 (C.26:2C-8.15 et seq.) but shall not include a hybrid electric vehicle.
"Hybrid electric vehicle" means an on-road vehicle powered by conventional or alternative fuels as well as electric power stored in a battery, and the battery is charged through regenerative braking and the internal combustion engine and is not plugged in to charge.
"Plug-in hybrid electric vehicle" means an on-road electric vehicle that is charged or recharged by plugging the vehicle into an electric power source and may also be powered by conventional or alternative fuels in addition to electric power stored in a battery.
5. a. For taxable years beginning in 2012, 2013 and 2014, 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 an electric truck or electric bus which is used directly and exclusively by the taxpayer in the taxpayer's business, trade, or occupation.
For purchases made in taxable years beginning in 2012, the credit allowed pursuant to this section shall be in the amount of up to $20,000 for the purchase of an electric truck or electric bus.
For purchases made in taxable years beginning in 2013, the credit allowed pursuant to this section shall be in the amount of up to $15,000 for the purchase of an electric truck or electric bus.
For purchases made in taxable years beginning in 2014, the credit allowed pursuant to this section shall be in the amount of up to $10,000 for the purchase of an electric truck or electric bus.
b. (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 electric truck or electric bus purchased by the taxpayer qualifies as an electric truck or electric bus. 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. 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.
c. 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% 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. The amount of the credit otherwise allowable under this section which cannot be applied for the taxable year due to the limitations of this section or under other provisions of "New Jersey Gross Income Tax Act" may be carried over, if necessary, to the seven taxable years following the taxable year for which the credit was allowed.
d. 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.
e. As used in this section:
"Electric bus" means a bus powered by electricity, or powered by a combination of internal combustion engines and electric propulsion, that is charged or recharged from an external source of electricity, such as by plugging the bus into an electric power source.
"Electric truck" means a truck powered by electricity, or powered by a combination of internal combustion engines and electric propulsion, that is charged or recharged from an external source of electricity, such as by plugging the truck into an electric power source. An electric truck may include a truck with electrically powered accessories, instead of mechanically powered accessories, that rely on electrical power to operate independently of the engine.
6. This act shall take effect immediately.
STATEMENT
This bill provides corporation business tax credits and gross income tax credits for the purchase of certain electric vehicles (EV) and plug-in hybrid electric vehicles (PHEV). The tax credits are available for purchases made in tax years beginning in 2012, 2013, and 2014.
For business entities, the bill provides a credit for the purchase of EVs or PHEVs and a credit for the purchase of electric trucks or busses. Each credit is available under the corporation business tax (CBT) and gross income tax (GIT). To qualify for these credits, the business entity taxpayer must use the vehicle directly and exclusively in the taxpayer's business, trade, or occupation.
These business credits are allowed for tax years beginning in a three year period and are gradually reduced each year. For EVs and PHEVs purchased in a tax year beginning in 2012 a business taxpayer is allowed a credit of up to $5,000 for an EV or $3,000 for a PHEV. For EVs and PHEVs purchased in a tax year beginning in 2013 a business taxpayer is allowed a credit of up to $3,000 for an EV or $1,500 for a PHEV. For EVs and PHEVs purchased in a tax year beginning in 2014 a business taxpayer is allowed a credit of up to $2,000 for an EV or $1,000 for a PHEV.
For electric trucks or electric buses purchased in a tax year beginning in 2012 a business taxpayer is allowed a credit of up to $20,000. For electric trucks or electric buses purchased in a tax year beginning in 2013 a business taxpayer is allowed a credit of up to $15,000. For electric trucks or electric buses purchased in a tax year beginning in 2014 a business taxpayer is allowed a credit of up to $10,000.
For personal income taxpayers, the bill provides a gross income tax credit for the purchase of EVs or PHEVs. These personal income taxpayer credits are allowed for tax years beginning in a three year period and are gradually reduced each year. For EVs and PHEVs purchased in a tax year beginning in 2012 a personal income taxpayer is allowed a credit of up to $5,000 for an EV or $3,000 for a PHEV. For EVs and PHEVs purchased in a tax year beginning in 2013 a personal income taxpayer is allowed a credit of up to $3,000 for a EV or $1,500 for a PHEV. For EVs and PHEVs purchased in a tax year beginning in 2014 a personal income taxpayer is allowed a credit of up to $2,000 for an EV or $1,000 for a PHEV. The bill limits personal income taxpayers to one of these credits per tax year, except joint filers are allowed two credits per tax year.
To qualify for any of the credits allowed under this bill a taxpayer must file an application for a certification from the Commissioner of the Department of Environmental Protection (DEP) that the vehicle purchased by the taxpayer qualifies as an EV, PHEV, electric truck or electric bus.
