STATE OF OKLAHOMA

1st Session of the 52nd Legislature (2009)

SENATE BILL 12	By:	Anderson

AS INTRODUCED

An Act relating to revenue and taxation; creating income tax credit for investments in qualified clean-burning motor vehicle fuel property and qualified alternative motor vehicle property; defining terms; setting amount of credits; providing for carryforward of unused credit; limiting claim under certain circumstances; repealing 68 O.S. 2001, Section 2357.22, as last amended by Section 1, Chapter 126, O.S.L. 2008 (68 O.S. Supp. 2008, Section 2357.22), which relates to income tax credits for certain investments; providing for codification; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 2357.105 of Title 68, unless there is created a duplication in numbering, reads as follows:
A.  For tax years beginning on or after January 1, 2010 and ending before January 1, 2015, there shall be allowed a one-time credit against the income tax imposed by Section 2355 of this title for investments in qualified clean-burning motor vehicle fuel property placed in service after the effective date of this act and for investments in qualified alternative motor vehicle property.
B.  As used in this section:
1.  "Qualified clean-burning motor vehicle fuel property" means:
a.	equipment installed to modify a motor vehicle which is propelled by gasoline or diesel fuel so that the vehicle may be propelled by methanol, "M-85", compressed natural gas, liquefied natural gas or liquefied petroleum gas or a combination of at least fifty percent (50%) natural gas, and
b.	property which is directly related to the delivery of methanol, "M-85", compressed natural gas, liquefied natural gas or liquefied petroleum gas into the fuel tank of a motor vehicle propelled by such fuel including compression equipment and storage tanks for such fuel at the point where such fuel is so delivered but only if such property is not used to deliver such fuel into any other type of storage tank or receptacle and such fuel is not used for any purpose other than to propel a motor vehicle.  However, property which is directly related to the delivery of methanol or "M-85" into the fuel tank of a motor vehicle propelled by such fuel as provided in this paragraph shall be used solely for the purpose of delivering methanol or "M-85" and no other purpose in order to claim the tax credit pursuant to this section.  If the property is used for any other purpose than the delivery of methanol or "M-85", the tax credit shall immediately be refunded to the Oklahoma Tax Commission.  The Corporation Commission shall inspect the property to determine whether the property is being used for the delivery of methanol or "M-85"; and
2. “Qualified alternative motor vehicle property” means a new motor vehicle that qualifies for a federal tax credit as provided in 26 U.S.C., Section 30B.
C.  The credit provided for in this section for investments in qualified clean-burning motor vehicle fuel property shall be equal to fifty percent (50%) of the cost of such property.  The credit provided for in this section for investments in qualified alternative motor vehicle property shall be equal to one hundred percent (100%) of the federal tax credit allowed as provided in 26 U.S.C., Section 30B.
D.  If the tax credit allowed pursuant to subsection A of this section exceeds the amount of income taxes due or if there are no state income taxes due on the income of the taxpayer, the amount of the credit not used as an offset against the income taxes of a taxable year may be carried forward as a credit against subsequent income tax liability for a period not to exceed three (3) years.
E.  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 have been allowed for a joint return.
SECTION 2.     REPEALER     68 O.S. 2001, Section 2357.22, as last amended by Section 1, Chapter 126, O.S.L. 2008 (68 O.S. Supp. 2008, Section 2357.22), is hereby repealed.
SECTION 3.  This act shall become effective January 1, 2010.

52-1-43	JCR	11/17/2008 1:16:51 PM