Sponsored by:
Senator NILSA CRUZ-PEREZ
District 5 (Camden and Gloucester)
SYNOPSIS
Provides corporation business tax credits and gross income tax credits for purchase of certain compressed natural gas vehicles.
CURRENT VERSION OF TEXT
As introduced.
An Act providing corporation business tax credits and gross income tax credits for the purchase of certain compressed natural gas 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 2020, 2021, and 2022, 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 compressed natural gas 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 2020, the credit allowed pursuant to this section shall be in the amount of up to $3,500 for the purchase of a compressed natural gas vehicle.
For purchases made in privilege periods beginning in 2021, the credit allowed pursuant to this section shall be in the amount of up to $2,500 for the purchase of a compressed natural gas vehicle.
For purchases made in privilege periods beginning in 2022, the credit allowed pursuant to this section shall be in the amount of up to $1,500 for the purchase of a compressed natural gas 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 vehicle purchased by the taxpayer qualifies as a passenger automobile that is fueled by compressed natural gas. 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 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. 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.
2. a. For privilege periods beginning in 2020, 2021, and 2022, 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 Class 8 compressed natural gas truck 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 2020, the credit allowed pursuant to this section shall be in the amount of up to $25,000 for the purchase of a Class 8 compressed natural gas truck.
For purchases made in privilege periods beginning in 2021, the credit allowed pursuant to this section shall be in the amount of up to $15,000 for the purchase of a Class 8 compressed natural gas truck.
For purchases made in privilege periods beginning in 2022, the credit allowed pursuant to this section shall be in the amount of up to $7,500 for the purchase of a Class 8 compressed natural gas truck.
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 truck purchased by the taxpayer qualifies as a Class 8 compressed natural gas truck. The certification shall specifically indicate the date of purchase of the truck, a description of the truck, and the amount paid for the truck. 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 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. 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.
3. a. For taxable years beginning in 2020, 2021, and 2022, 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 a compressed natural gas 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 2020, a taxpayer shall be allowed a credit of up to $3,500 for the amount paid to purchase a compressed natural gas vehicle.
For taxable years beginning in 2021, a taxpayer shall be allowed a credit of up to $2,500 for the amount paid to purchase a compressed natural gas vehicle.
For taxable years beginning in 2022, a taxpayer shall be allowed a credit of up to $1,500 for the amount paid to purchase a compressed natural gas 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 vehicle purchased by the taxpayer qualifies as a passenger automobile that is fueled by compressed natural gas. 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.
4. a. For taxable years beginning in 2020, 2021, and 2022, 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 a compressed natural gas 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 2020, the credit allowed pursuant to this section shall be in the amount of up to $3,500 for the purchase of a compressed natural gas vehicle.
For purchases made in taxable years beginning in 2021, the credit allowed pursuant to this section shall be in the amount of up to $2,500 for the purchase of a compressed natural gas vehicle.
For purchases made in taxable years beginning in 2022, the credit allowed pursuant to this section shall be in the amount of up to $1,500 for the purchase of a compressed natural gas 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 vehicle purchased by the taxpayer qualifies as a passenger automobile that is fueled by compressed natural gas. 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 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.
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.
5. a. For taxable years beginning in 2020, 2021, and 2022, 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 Class 8 compressed natural gas truck 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 2020, the credit allowed pursuant to this section shall be in the amount of up to $25,000 for the purchase of a Class 8 compressed natural gas truck.
For purchases made in taxable years beginning in 2021, the credit allowed pursuant to this section shall be in the amount of up to $15,000 for the purchase of a Class 8 compressed natural gas truck.
For purchases made in taxable years beginning in 2022, the credit allowed pursuant to this section shall be in the amount of up to $7,500 for the purchase of a Class 8 compressed natural gas truck.
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 truck purchased by the taxpayer qualifies as a Class 8 compressed natural gas truck. The certification shall specifically indicate the date of purchase of the truck, a description of the truck, and the amount paid for the truck. 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 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. 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.
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 compressed natural gas (CNG) vehicles. The tax credits are available for purchases made in tax years beginning in 2020, 2021, and 2022.
For business entities, the bill provides a credit for the purchase of CNG passenger automobiles and a credit for the purchase of Class 8 CNG trucks. Each credit is available under the corporation business tax and gross income tax. 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 CNG passenger automobiles purchased in a tax year beginning in 2020 a business taxpayer is allowed a credit of up to $3,500. For CNG passenger automobiles purchased in a tax year beginning in 2021 a business taxpayer is allowed a credit of up to $2,500. For CNG passenger automobiles purchased in a tax year beginning in 2022 a business taxpayer is allowed a credit of up to $1,500. For Class 8 CNG trucks purchased in a tax year beginning in 2020 a business taxpayer is allowed a credit of up to $25,000. For Class 8 CNG trucks purchased in a tax year beginning in 2021 a business taxpayer is allowed a credit of up to $15,000. For Class 8 CNG trucks purchased in a tax year beginning in 2022 a business taxpayer is allowed a credit of up to $7,500.
For personal income taxpayers, the bill provides a gross income tax credit for the purchase of CNG passenger automobiles. These personal income taxpayer credits are allowed for tax years beginning in a three year period and are gradually reduced each year. For CNG passenger automobiles purchased in a tax year beginning in 2020 a personal income taxpayer is allowed a credit of up to $3,500. For CNG passenger automobiles purchased in a tax year beginning in 2021 a personal income taxpayer is allowed a credit of up to $2,500. For CNG passenger automobiles purchased in a tax year beginning in 2022 a personal income taxpayer is allowed a credit of up to $1,500. 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 Environmental Protection that the vehicle or truck purchased by the taxpayer qualifies as a passenger automobile fueled by CNG or a Class 8 CNG truck.