Senate Bill No. 519
(By Senators Ross, Helmick and Sharpe)
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[Introduced February 20, 1995; referred to the Committee
on Finance.]
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A BILL to amend chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article six-c, relating to
an alternative-fuel motor vehicle tax credit.
Be it enacted by the Legislature of West Virginia:
That chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, be amended by
adding thereto a new article, designated article six-c, to read
as follows:
ARTICLE 6C. ALTERNATIVE-FUEL MOTOR VEHICLES TAX CREDIT.
§11-6C-1. Legislative findings and purpose.
The Legislature finds that the use of alternative fuels in
place of nonrenewable sources of energy is in the public interest and promotes the general welfare of the people of the state.
However, the cost of motor vehicles which utilize
alternative-fuel technologies remains high in relation to motor
vehicles that employ more traditional technologies. Therefore,
in order to encourage the use of alternatively fueled motor
vehicles and thereby reduce unnecessary pollution of our
environment and conserve our nonrenewable sources of energy,
there is hereby created an alternative-fuel motor vehicles tax
credit.
§11-6C-2. Definitions.
As used in this article, the following terms shall have the
meanings ascribed to them in this section:
(1) "Alternative fuel" includes:
(A) Compressed natural gas;
(B) Liquified natural gas;
(C) Liquified petroleum gas;
(D) Methanol;
(E) Ethanol;
(F) Fuel mixtures that contain eighty-five percent or more
by volume, when combined with gasoline or other fuels, of the
following:
(i) Methanol;
(ii) Ethanol; or
(iii) Other alcohols;
(G) Coal-derived liquid fuels; and
(H) Electricity, including electricity from solar energy.
(2) "Alternative-fuel motor vehicle" means a motor vehicle
that:
(A) Operates solely on one alternative fuel;
(B) Is capable of operating on one or more alternative
fuels, singly or in combination; or
(C) Is capable of operating on an alternative fuel and is
also capable of operating on gasoline or diesel fuel.
§11-6C-3. Credit allowed for alternative-fuel motor vehicles;
application against personal income tax or
corporate net income tax.
The tax credit provided for 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 motor vehicle as defined in subsection
(2), section two of this article.
§11-6C-4. Eligibility for credit.
A taxpayer is eligible to claim the credit against tax
provided in this article if he or she:
(1) Converts a motor vehicle that is presently registered in
West Virginia to operate:
(A) Exclusively on an alternative fuel as defined in
subsection (1), section two of this article; or
(B) In a dual fuel mode, as defined in subdivision (F),
subsection (1), section two of this article; or
(2) Purchases from an original equipment manufacturer or an
after-market conversion facility a new dedicated or dually fueled
alternative-fuel motor vehicle for which the taxpayer then
obtains a valid West Virginia registration.
§11-6C-5. Amount of credit.
(a) For an alternative-fuel motor vehicle as described in
subsection (2), section two of this article, with a gross vehicle
weight of up to ten thousand pounds, a taxpayer is entitled to a
credit against tax as provided in section three of this article
in the amount of three thousand seven hundred fifty dollars.
(b) For an alternative-fuel motor vehicle as described in
subsection (2), section two of this article, with a gross vehicle weight of more that ten thousand pounds but less that twenty-six
thousand pounds, a taxpayer is entitled to a credit against tax
as provided in section three of this article in the amount of
nine thousand two hundred fifty dollars.
(c) For an alternative-fuel motor vehicle as described in
subsection (2), section two of this article, that is a truck or
van with a gross vehicle weight of more than twenty-six thousand
pounds, a taxpayer is entitled to a credit against tax as
provided in section three of this article in the amount of fifty
thousand dollars.
(d) For an alternative-fuel motor vehicle as described in
subsection (2), section two of this article, that is a bus
capable of seating at least twenty adults, a taxpayer is entitled
to a credit against tax as provided in section three of this
article in the amount of fifty thousand dollars.
(e) Notwithstanding any other provision of this code, a
taxpayer who is otherwise entitled to a credit against tax under
the provisions of subsections (a), (b), (c) or (d) of this
section, who claims the credit provided for in this article for
any alternative-fuel motor vehicle which operates exclusively on
electricity is entitled to an additional credit of ten percent of the credit allowed under subsections (a), (b), (c) or (d) of this
section.
§11-6C-6. Credit to be apportioned over three-year period.
The credit against tax for any alternative-fuel 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 motor vehicle
under section five may be taken.
§11-6C-7. Duration of availability of credit.
The tax credit provided for in this article shall expire by
operation of law ten years after the effective date of this
article: 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.
§11-6C-8. Secretary to design forms and schedules; promulgation
of rules.
(a) The tax commissioner shall design and provide to the
public simplified forms and schedules to implement and effectuate
the provisions of this article.
(b) The tax commissioner is authorized to promulgate rules
for the administration of this article consistent with its
provisions and in accordance with article three, chapter
twenty-nine-a of this code.
NOTE: The purpose of this bill is to establish a tax credit
for new or converted motor vehicles which operate on certain
"alternative fuels."
This article is new; therefore, strike-throughs and
underscoring have been omitted.