STATE OF OKLAHOMA

1st Session of the 54th Legislature (2013)

SENATE BILL 75	By:	Coates

AS INTRODUCED

An Act relating to income tax credits; amending 68 O.S. 2011, Section 2357.22, which relates to income tax credits for investments in qualified clean-burning motor vehicle fuel property; expanding property eligible for certain credit to include certain construction and installation costs; limiting amount of accrued credit which may be claimed in one tax year; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     68 O.S. 2011, Section 2357.22, is amended to read as follows:
Section 2357.22  A.  For tax years beginning before January 1, 2015, there shall be allowed a one-time credit against the income tax imposed by Section 2355 of this title:
1.  For investments in qualified clean-burning motor vehicle fuel property placed in service after December 31, 1990; and
2.  For investments in qualified electric motor vehicle property placed in service after December 31, 1995, and before July 1, 2010.
B.  As used in this section, "qualified clean-burning motor vehicle fuel property" means:
1.  Equipment installed to modify a motor vehicle which is propelled by gasoline or diesel fuel so that the vehicle may be propelled by a hydrogen fuel cell, compressed natural gas, liquefied natural gas or liquefied petroleum gas; provided, equipment installed on a vehicle propelled by a hydrogen fuel cell shall only be eligible for tax year 2010.  The equipment covered by this paragraph must be new and must not have been previously used to modify or retrofit any vehicle propelled by gasoline or diesel fuel;
2.  A motor vehicle originally equipped so that the vehicle may be propelled by a hydrogen fuel cell, compressed natural gas, liquefied natural gas or liquefied petroleum gas but only to the extent of the portion of the basis of such motor vehicle which is attributable to the storage of such fuel, the delivery to the engine of such motor vehicle of such fuel, and the exhaust of gases from combustion of such fuel.  A motor vehicle originally equipped so that the vehicle may be propelled by a hydrogen fuel cell shall only be eligible for tax year 2010;
3.  Property, not including a building and its structural components, which is:
a.	directly related to the delivery of compressed natural gas, liquefied natural gas or liquefied petroleum gas, or hydrogen, for commercial purposes or for a fee or charge, 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, or
b.	a metered-for-fee, public access recharging system for motor vehicles propelled in whole or in part by electricity.  On or after the effective date of this act, the costs of constructing and installing a metered-for-fee, public access recharging system or a recharging system for a private home or residence shall qualify for the credit provided pursuant to paragraph 2 of subsection E of this section.  The property covered by this paragraph must be new, and must not have been previously installed or used to refuel vehicles powered by compressed natural gas, liquefied natural gas or liquefied petroleum gas, hydrogen or electricity.
Any property covered by this paragraph which is related to the delivery of hydrogen into the fuel tank of a motor vehicle shall only be eligible for tax year 2010; or
4.  Property which is directly related to the compression and delivery of natural gas from a private home or residence, for noncommercial purposes, into the fuel tank of a motor vehicle propelled by compressed natural gas.  The property covered by this paragraph must be new and must not have been previously installed or used to refuel vehicles powered by natural gas.
C.  As used in this section, "qualified electric motor vehicle property" means a motor vehicle originally equipped to be propelled only by electricity; provided, if a motor vehicle is also equipped with an internal combustion engine, then such vehicle shall be considered “qualified electric motor vehicle property” only to the extent of the portion of the basis of such motor vehicle which is attributable to the propulsion of the vehicle by electricity.  The term "qualified electric motor vehicle property" shall not apply to vehicles known as "golf carts", "go-carts" and other motor vehicles which are manufactured principally for use off the streets and highways.
D.  As used in this section, “motor vehicle” means a motor vehicle originally designed by the manufacturer to operate lawfully and principally on streets and highways.
E.  The credit provided for in subsection A of this section shall be as follows:
1.  For the qualified clean-burning motor vehicle fuel property defined in paragraph 1 or 2 of subsection B of this section and for the qualified electric motor vehicle property, fifty percent (50%) of the cost of the qualified clean-burning motor vehicle fuel property or qualified electric motor vehicle property;
2.  For qualified clean-burning motor vehicle fuel property defined in paragraph 3 of subsection B of this section, a per-location credit of seventy-five percent (75%) of the cost of the qualified clean-burning motor vehicle fuel property; provided, no more than thirty-three and one-third percent (33 1/3%) of the total dollar amount of credit accrued for the costs of constructing and installing property for a recharging system shall be claimed by the taxpayer in any one taxable year; and
3.  For qualified clean-burning motor vehicle fuel property defined in paragraph 4 of subsection B of this section, a per-location credit of the lesser of fifty percent (50%) of the cost of the qualified clean-burning motor vehicle fuel property or Two Thousand Five Hundred Dollars ($2,500.00).
F.  In cases where no credit has been claimed pursuant to paragraph 1 of subsection E of this section by any prior owner and in which a motor vehicle is purchased by a taxpayer with qualified clean-burning motor vehicle fuel property or qualified electric motor vehicle property installed by the manufacturer of such motor vehicle and the taxpayer is unable or elects not to determine the exact basis which is attributable to such property, the taxpayer may claim a credit in an amount not exceeding the lesser of ten percent (10%) of the cost of the motor vehicle or One Thousand Five Hundred Dollars ($1,500.00).
G.  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 five (5) years.
H.  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.
I.  The Oklahoma Tax Commission is herein empowered to promulgate rules by which the purpose of this section shall be administered, including the power to establish and enforce penalties for violations thereof.
SECTION 2.  This act shall become effective July 1, 2013.
SECTION 3.  It being immediately necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist, by reason whereof this act shall take effect and be in full force from and after its passage and approval.

54-1-530	JCR	1/3/2013 1:14:06 PM