Introduced Version
Senate Bill 366 History
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Key: Green = existing Code. Red = new code to be enacted
Senate Bill No. 366
(By Senators McCabe, Cann, Facemire, Green, D. Hall, Walters and
Kessler (Mr. President))
____________
[Introduced February 25, 2013; referred to the Committee on
Transportation and Infrastructure; and then to the Committee on
Finance .]
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A BILL to amend and reenact §11-6D-2, §11-6D-4 and §11-6D-6 of the
Code of West Virginia, 1931, as amended; and to amend said
code by adding thereto a new section, designated §11-6D-10,
all relating generally to use of alternative-fuel motor
vehicles; eliminating the availability of a tax credit for
vehicles that are capable of running on ethanol and certain
fuel mixtures containing ethanol, methanol or other alcohols;
removing the requirement that a converted vehicle must operate
exclusively on an alternative fuel in order to take the
credit; eliminating a rule requirement; allowing pass-through
entities to distribute credits to pass-through equity owners
in any manner such equity owners see fit; permitting the transfer of tax credits for purchase of alternative-fuel
vehicles, conversion to an alternative-fuel vehicle or
construction of alternative-fuel vehicle infrastructure;
setting forth how those transfers of tax credits may be
accomplished; providing an exception; and permitting
government entities and nonprofit entities to utilize certain
tax credits
.
Be it enacted by the Legislature of West Virginia:
That §11-6D-2, §11-6D-4 and §11-6D-6 of the Code of West
Virginia, 1931, as amended, be amended and reenacted; and that said
code be amended by adding thereto a new section, designated
§11-6D-10, all to read as follows:
ARTICLE 6D. ALTERNATIVE-FUEL 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) Ethanol;
(5) 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;
(6) (4) Natural gas hydrocarbons and derivatives;
(7) (5) Hydrogen;
(8) (6) Coal-derived liquid fuels; and
(9) (7) Electricity, including electricity from solar energy.
(b) "Alternative-fuel motor vehicle" means a motor vehicle
that as a new or retrofitted or converted fuel vehicle:
(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.
(c) "Bi-fueled" means the ability of an alternative-fuel motor
vehicle to operate on an alternative fuel and another form of fuel.
(d) "Plug-in hybrid electric vehicle" means:
(1) A plug-in hybrid electric vehicle manufactured by an
established motor vehicle manufacturer of plug-in hybrid electric
vehicles that can operate solely on electric power and that is
capable of recharging its battery from an on-board generation
source and an off-board electricity source; and
(2) A plug-in hybrid electric vehicle conversion that provides
an increase in city fuel economy of seventy-five percent or more as
compared to a comparable nonhybrid version vehicle for a minimum of
twenty miles and that is capable of recharging its battery from an
on-board generation source and an off-board electricity source. A
vehicle is comparable if it is the same model year and the same
vehicle class as established by the United States Environmental
Protection Agency and is comparable in weight, size and use. Fuel
economy comparisons shall be made using city fuel economy standards
in a manner that is substantially similar to the manner in which
city fuel economy is measured in accordance with procedures set
forth in 40 C.F.R. 600 as in effect on January 1, 2011.
(e) "Qualified alternative fuel vehicle refueling
infrastructure" means property owned by the applicant for the tax
credit and used for storing alternative fuels and for dispensing
such alternative fuels into fuel tanks of motor vehicles,
including, but not limited to, compression equipment, storage tanks
and dispensing units for alternative fuel at the point where the
fuel is delivered: Provided, That the property is installed and
located in this state and is not located on a private residence or
private home.
(f) "Qualified alternative fuel vehicle home refueling
infrastructure" means property owned by the applicant for the tax credit located on a private residence or private home and used for
storing alternative fuels and for dispensing such alternative fuels
into fuel tanks of motor vehicles, including, but not limited to,
compression equipment, storage tanks and dispensing units for
alternative fuel at the point where the fuel is delivered or for
providing electricity to plug-in hybrid electric vehicles or
electric vehicles: Provided, That the property is installed and
located in this state.
(g) "Taxpayer" means any natural person, corporation, limited
liability company or partnership subject to the tax imposed under
article twenty-one, article twenty-three or article twenty-four of
this chapter or any combination thereof and,
for the purposes of
transferability as allowed pursuant to section ten of this article,
state, county and municipal governmental entities and nonprofit
entities.
§11-6D-4. Eligibility for credit.
A taxpayer is eligible to claim the credit against tax
provided in this article if he or she:
(a) Converts a motor vehicle that is presently registered in
West Virginia to operate exclusively on an alternative fuel as
defined in subdivision (a), section two of this article
or any
combination of an alternative fuel and any other fuel
; or
(b) Purchases from an original equipment manufacturer or an after-market conversion facility or any other automobile retailer,
a new dedicated or bi-fueled alternative-fuel motor vehicle for
which the taxpayer then obtains a valid West Virginia registration;
or
(c) Constructs or purchases and installs qualified alternative
fuel vehicle refueling infrastructure or qualified alternative fuel
vehicle home refueling infrastructure that is capable of dispensing
alternative fuel for alternative-fuel motor vehicles.
(d) 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.
§11-6D-6. Amount of credit for qualified alternative fuel vehicle
refueling infrastructure and qualified alternative
fuel vehicle home refueling infrastructure.
(a) For taxable years beginning on and after January 1, 2011,
but prior to January 1, 2014, the amount of the credit allowed
under this article for qualified alternative fuel vehicle refueling
infrastructure is equal to an amount of fifty percent of the total
costs directly associated with the construction or purchase and
installation of the alternative fuel vehicle refueling
infrastructure up to a maximum of $250,000: Provided, That if the
qualified alternative fuel vehicle refueling infrastructure is generally accessible for public use, the amount of the credit
allowed will be multiplied by 1.25 and the maximum amount allowable
will be $312,500. The amount of credit allowed may not exceed the
cost of construction of the alternative fuel vehicle refueling
infrastructure.
(b) For taxable years beginning on and after January 1, 2014,
but prior to January 1, 2016, the amount of the credit allowed
under this article for qualified alternative fuel vehicle refueling
infrastructure is equal to an amount of fifty percent of the total
costs directly associated with the construction or purchase and
installation of the alternative fuel vehicle refueling
infrastructure up to a maximum of $200,000: Provided, That if the
qualified alternative fuel vehicle refueling infrastructure is
generally accessible for public use, the amount of the credit
allowed will be multiplied by 1.25 and the maximum amount allowable
will be $250,000. The amount of credit allowed may not exceed the
cost of construction of the alternative fuel vehicle refueling
infrastructure.
(c) For taxable years beginning on and after January 1, 2016,
but prior to January 1, 2022, the amount of the credit allowed
under this article for qualified alternative fuel vehicle refueling
infrastructure is equal to an amount of fifty percent of the total
costs directly associated with the construction or purchase and installation of the alternative fuel vehicle refueling
infrastructure up to a maximum of $150,000: Provided, That if the
qualified alternative fuel vehicle refueling infrastructure is
generally accessible for public use, the amount of the credit
allowed will be multiplied by 1.25 and the maximum amount allowable
will be $187,500. The amount of credit allowed may not exceed the
cost of construction of the alternative fuel vehicle refueling
infrastructure.
(d) For taxable years beginning on and after January 1, 2011,
the amount of the credit allowed under this article for qualified
alternative fuel vehicle home refueling infrastructure is equal to
an amount of fifty percent of the total costs directly associated
with the construction or purchase and installation of the
alternative fuel vehicle home refueling infrastructure up to a
maximum of $10,000.
(e) The cost of construction of the alternative fuel vehicle
refueling infrastructure or alternative fuel vehicle home refueling
infrastructure eligible for a tax credit under this section does
not include costs associated with exploration, development or
production activities necessary for severing natural resources from
the soil or ground.
(f) When the taxpayer is a pass-through entity treated like a
partnership for federal and state income tax purposes, the credit allowed under this article for the year shall flow through to the
equity owners of the pass-through entity in the same any manner
that distributive share flows through to the equity owners. and in
accordance with any legislative rule the Tax Commissioner may
propose for legislative approval in accordance with article three,
chapter twenty-nine-a of this code to administer this section.
(g) No credit allowed by this article may be applied against
employer withholding taxes imposed by article twenty-one of this
chapter.
§11-6D-10. Transfer or sale of credit.
(a) For purposes of this article and notwithstanding any
provision in the code to the contrary, a state, county or municipal
governmental entity and a nonprofit entity constitute a "taxpayer"
as that term is defined in section two of this article and are
entitled to take and transfer tax credits which are provided in
this article. Any entity may transfer and sell the right to a tax
credit issued pursuant to this article for liquefied natural gas
vehicles, compressed natural gas vehicles, natural gas hydrocarbon
and derivative vehicles and qualified alternative-fuel vehicle
refueling infrastructure to any taxpayer, subject to the following
conditions:
(1) A single transfer or sale may involve one or more
transferees, assignees or purchasers. A transfer or sale of the credits may involve multiple transfers to one or more transferees,
assignees or purchasers.
(2) Transferors and sellers shall apply to the tax department
for approval of any transfer, sale or assignment of the tax credit.
Any amount of the tax credit that has been transferred or assigned
is subject to the same limitations and conditions that apply to
transferor's or seller's entitlement, use and application of the
credit. The application for sale, transfer or assignment of the
credit shall include the transferor's tax credit balance prior to
transfer, if any, the name of the seller, the transferor's
remaining tax credit balance after transfer, if any, all tax
identification numbers for both transferor, if any, and transferee,
the date of transfer, the amount transferred and any other
information required by the Tax Commissioner. The Tax Commissioner
shall either approve or disapprove the application for sale,
transfer or assignment of the tax credit within thirty days of
receipt of the application. In the event the Tax Commissioner
denies the application for sale, transfer or assignment of the tax
credit, the Tax Commissioner shall provide the reason for such
denial: Provided, That the total amount of tax credits authorized
to be transferred by state, county and municipal governmental
entities and nonprofit entities in any one calendar year in the
aggregate shall not exceed $2 million for qualified alternative-fuel motor vehicle tax credits and $2 million for
qualified alternative-fuel vehicle refueling infrastructure tax
credits.
(3) The Tax Commissioner may not approve the transfer or
assignment of a tax credit to a taxpayer if the seller or
transferor has an outstanding tax obligation with the state of West
Virginia.
(b) The transferee, assignee or purchaser shall apply the tax
credits as required by this article and is subject to all
conditions and limitations of this article.
(c) For purposes of this section, any proceeds received by the
transferor for its assignment or sale of the tax credits allowed
pursuant to this section are exempt from the West Virginia
consumers sales and service tax and use tax and from the
corporation net income tax and personal income tax.
(d) The purpose of this section is to authorize any entity to
take and transfer tax credits provided in this article, and
specifically allow government entities and nonprofit entities to
utilize certain tax credits issued pursuant to this article.
NOTE: The purpose of this bill is to eliminate the
availability of a tax credit for vehicles that are capable of
running on ethanol and certain fuel mixtures containing ethanol,
methanol or other alcohols. The bill removes the requirement that
a converted vehicle must operate exclusively on an alternative fuel
in order to take the credit. The bill eliminates a rule requirement. The bill allows pass-through entities to distribute
credits to pass-through equity owners in any manner the equity
owners see fit. The bill permits the transfer of tax credits for
purchase of alternative-fuel vehicles, conversion to an
alternative-fuel vehicle or construction of alternative-fuel
vehicle infrastructure. The bill sets forth how those transfer of
tax credits may be accomplished. The bill
allows government
entities and nonprofit entities to utilize certain tax credits
.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
§11-6D-10 is new; therefore, strike-throughs and underscoring
have been omitted.