Establishing a tax credit for plug-in electric drive motor vehicles and vehicles using compressed natural gas
H. B. 2938
(By Delegates Manypenny, Shaver, Staggers,
Martin, D. Poling, Wells and White)
[Introduced January 28,2011; referred to the
Committee on Roads and Transportation then Finance.]
A BILL to amend and reenact §11-6D-1, §11-6D-2, §11-6D-3, §11-6D-4,
§11-6D-5, §11-6D-6 and §11-6D-7 of the Code of West Virginia,
1931, as amended, all relating to establishing a tax credit
for plug-in electric drive motor vehicles and vehicles using
compressed natural gas as an engine motor fuel; defining
terms; specifying initial availability of the credit and
duration of the credit; providing eligibility for the credit;
calculating the amount of the credit; providing a maximum
credit of $2,500 per vehicle; and updating language that
applies only to plug-in electric drive and compressed natural
gas motor vehicles.
Be it enacted by the Legislature of West Virginia:
That §11-6D-1, §11-6D-2, §11-6D-3, §11-6D-4, §11-6D-5, §11-6D-
6 and §11-6D-7 of the Code of West Virginia, 1931, as amended, be
amended and reenacted, all to read as follows:
ARTICLE 6D. PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES TAX CREDIT.
§11-6D-1. Legislative findings and purpose.
Consistent with the public policy as stated in section one,
article two-d, chapter twenty-four of this code, the Legislature
hereby finds that the use of alternative fuels, including
electricity and compressed natural gas, is in the public interest
and promotes the general welfare of the people of this state
insofar as it addresses serious concerns for our environment and
our state's and nation's dependence on foreign oil as a source of
energy. The Legislature further finds that this state has an
abundant supply of alternative fuels and an extensive supply
network and that by encouraging the use of alternatively-fueled
plug-in electric drive and compressed natural gas
motor vehicles,
the state will be reducing its dependence on foreign oil and
attempting to improve its air quality.
However, because the cost of motor vehicles which utilize
alternative-fuel technologies, including electricity and compressed
natural gas
, remains high in relation to motor vehicles that employ
more traditional technologies, citizens of this state who might
otherwise choose an alternatively-fueled a plug-in electric drive
or compressed natural gas
motor vehicle are forced by economic
necessity to continue using motor vehicles that are fueled by more
conventional means. Therefore, in order to encourage the use of
alternatively-fueled plug-in electric drive and compressed natural
gas
motor vehicles and possibly reduce unnecessary pollution of
our environment and reduce our dependence on foreign sources of
energy, there is hereby created an alternative-fuel a plug-in electric drive and compressed natural gas motor vehicles tax
credit.
§11-6D-2. Definitions.
As used in this article, the following terms have the meanings
ascribed to them in this section:
(a) "Alternative fuel" includes:
(1) Compressed natural gas;
(2) Liquified natural gas;
(3) Liquified petroleum gas;
(4) Methanol;
(5) Ethanol;
(6) Fuel mixtures that contain eighty-five percent or more by
volume, when combined with gasoline or other fuels, of the
following:
(A) Methanol;
(B) Ethanol; or
(C) Other alcohols;
(7) Coal-derived liquid fuels; and
(8) Electricity, including electricity from solar energy.
(b) "Alternative-fuel motor vehicle" means a motor vehicle
that as a new or retrofitted or converted fuel:
(1) Operates solely on one alternative fuel;
(2) Is capable of operating on one or more alternative fuels,
singly or in combination; or
(3) Is capable of operating on an alternative fuel and is also capable of operating on gasoline or diesel fuel.
(1) "New qualified plug-in electric drive motor vehicle" means
a motor vehicle:
(A) The original use of which commences with the taxpayer;
(B) Which is made by a manufacturer;
(C) Which is acquired for use or lease by the taxpayer and not
for resale;
(D) Which is treated as a motor vehicle for purposes of title
II of the Clean Air Act;
(E) Which has a gross vehicle weight rating of less than
fourteen thousand pounds; and
(F) Which is propelled to a significant extent by an electric
motor which draws electricity from a battery which:
(i) Has a capacity of at least four kilowatt hours; and
(ii) Is capable of being recharged from an external source of
electricity.
(2) "New qualified compressed natural gas motor vehicle" means
a motor vehicle:
(A) The original use of which commences with the taxpayer;
(B) Which is made by a manufacturer;
(C) Which is acquired for use or lease by the taxpayer and not
for resale;
(D) Which is treated as a motor vehicle for purposes of title
II of the Clean Air Act;
(E) Which has a gross vehicle weight rating of less than fourteen thousand pounds; and
(F) Which is propelled to a significant extent by a motor
which uses compressed natural gas as a motor fuel.
(3) "Motor vehicle" means any vehicle which is manufactured
primarily for use on public streets, roads and highways and which
has at least four wheels. The term does not include a vehicle
operated exclusively on a rail or rails.
§11-6D-3. Credit allowed for new qualified plug-in electric drive
motor vehicles; application against personal income
tax or corporate net income tax; effective date.
The tax credit provided in this article may be applied against
the tax liability of a taxpayer imposed by the provisions of either
article twenty-one or article twenty-four of this chapter, but in
no case may more than one credit be granted for the same
alternative-fuel new qualified plug-in electric drive or compressed
natural gas motor vehicle as defined in
subdivision (b) section two
of this article. This credit
shall be is available for those tax
years beginning after
the thirtieth day of June, one thousand nine
hundred ninety-seven June 30, 2011.
§11-6D-4. Eligibility for credit.
(a) A taxpayer is eligible to claim the credit against tax
provided in this article if he or she:
(a) (1) Converts a motor vehicle that is presently registered
in West Virginia to:
operate:
(1) Exclusively on an alternative fuel as defined in
subdivision (a), section two of this article; or
(2) In a dual fuel mode, as defined in paragraph (6),
subdivision (a), section two of this article; or
A qualified plug-in electric drive motor vehicle which, for
the purposes of this subdivision means any new plug-in electric
drive motor vehicle as defined in subdivision (1), section two of
this article, without regard to paragraphs (A) and (B), and that
conversion is made before December 31, 2012; or
(2) A qualified compressed natural gas motor vehicle which,
for the purposes of this subdivision means any new compressed
natural gas vehicle as defined in subdivision (2), section two of
this article, without regard to paragraphs (A) and (B), and that
conversion is made before December 31, 2012;
(b) (3) Purchases from an original equipment manufacturer or
an after-market conversion facility a new dedicated or dually
fueled alternative-fuel qualified plug-in electric drive or
compressed natural gas
motor vehicle for which the taxpayer then
obtains a valid West Virginia registration.
(c) (b) The credit provided in this article is not available
to and may not be claimed by any taxpayer under any obligation
pursuant to any federal or state law, policy or regulation to
convert to the use of alternative fuels for any motor vehicle plug-
in electric drive or compressed natural gas motor vehicles.
§11-6D-5. Amount of credit.
(a) The total amount of any credit allowed under this article
is limited by and subject to the provisions set forth in this
subsection and subsections (b) and (c) and (d) of this section and
may not exceed:
(1) In the case of a motor vehicle conversions or
retrofitting, the actual cost of converting from a traditionally-
fueled motor vehicle to an alternatively-fueled motor vehicle ten
percent of the actual cost of the conversion; or
(2) In the case of a new purchase, the incremental difference
in cost between an alternative-fuel motor vehicle and a comparably
equipped motor vehicle that employs traditional fuel technology.
sum of $2,500.
(b) The maximum total credit allowed per vehicle under this
section is $2,500.
(1) For a vehicle with a gross vehicle weight of not more than
ten thousand pounds, $3,750.
(2) For a vehicle with a gross vehicle weight of more than ten
thousand pounds up to twenty-six thousand pounds, $9,250;
(3) For a truck or van with a gross vehicle weight of more
than twenty-six thousand pounds, $50,000; and
(4) For a bus capable of seating at least twenty adults,
$50,000.
(c) Subject to the limitations set forth in subsection (a) of
this section, a taxpayer who is otherwise entitled to a credit
against tax who claims the credit provided for in this article on the basis of any alternative-fuel motor vehicle that operates
exclusively on electricity is entitled to an additional credit of
ten percent of the credit which is otherwise allowed under
subsection (b) of this section.
(d) (c) The maximum incremental credit allowed per year is one
third of the credit attributable to five vehicles with the
cumulative credit over a three-year period not to exceed one third
of the credit attributable to fifteen vehicles.
§11-6D-6. Credit to be apportioned over three-year period.
The credit against tax for any alternative-fuel plug-in
electric drive or compressed natural gas
motor vehicle provided for
in this article may be taken by a taxpayer claiming the credit only
in three equal increments over a three-consecutive tax-year period,
so that in any tax year in which a taxpayer is entitled to the
credit, only one third of the total credit allowed for a certain
alternative-fuel qualified plug-in electric drive or compressed
natural gas
motor vehicle under section five of this article may be
taken.
§11-6D-7. Duration of availability of credit.
(a) Except as otherwise provided in this article, the tax
credit provided in this article shall expire by operation of law
ten years after the effective date of the amendments to this
article during the 2011 regular session of the Legislature.
Provided, That Any eligible taxpayer who makes a valid claim for
the credit before that expiration is entitled to claim and receive the remaining one-third increment or increments of the total credit
allowed under section five of this article for the tax year or
years ensuing after the expiration of this article until the total
amount of credit allowed has been exhausted.
NOTE: The purpose of this bill is to provide a tax incentive
for plug-in electric drive motor vehicles and vehicles using
compressed natural gas as an engine motor fuel. The bill defines
terms. The bill specifies initial availability of the credit and
duration of the credit. The bill sets forth eligibility for the
credit and provides a calculation of the amount of the credit, up
to a maximum credit of $2,500 per vehicle. Further, the bill
updates language to apply only to plug-in electric drive and
compressed natural gas motor vehicles.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.