HB 616: ALTERNATIVE FUEL VEHICLE TAX CREDITS

An Act Relating To Taxation; Providing For Alternative Fuel Vehicle Income And Corporate Income Tax Credits; Providing For Alternative Fueling Station Income And Corporate Income Tax Credits.

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MILD HB 616
ALTERNATIVE FUEL VEHICLE TAX CREDITS

Legislative URL:

HB 616 on nmlegis.gov

Emergency Clause:

No

Germane:

N/A

Location:

HTRC

Action:

[24] HTPWC/HTRC-HTPWC [36] DP-HTRC API.

Issue(s):

Energy

Related Legislators

Bill Sponsor:

Brian Egolf, Jr.

Related Documents

Downloads:

Introduced
HTPWC Committee Report
Fiscal Impact Report

Summary

This bill creates corporate and personal income tax credits for alternative fuel vehicles and alternative fueling stations. The purpose of the credits is to encourage the mainstream to transition to the use of alternative fuels in motor vehicles and reduce the use of gasoline or diesel fuel.

The vehicle credit is available for buying an alternative fuel vehicle or qualified conversion equipment on or after July 1, 2013 and prior to July 1, 2016. The credit may be up to 50% of the cost basis of the vehicle or equipment. The fueling station credit is available to taxpayers who make an investment in such on or after July 1, 2013 and prior to July 1, 2016. A taxpayer may take a credit of the lesser of 50% of the purchase and installation cost or $2,500 for a residential alternative fueling station or the lesser of 75% of purchase and installation cost of a commercial alternative fueling station.

An “alternative fuel vehicle” is one that may be run on electricity, a hydrogen fuel cell, compressed natural gas, liquefied natural gas or liquefied petroleum gas. Its “cost basis” is the portion of the purchase price of that is attributable to the propulsion systems fueled by electricity, a hydrogen fuel cell, compressed natural gas, liquefied natural gas, or liquefied petroleum gas. If the vehicle runs entirely on electricity, the cost basis equals the purchase price. The taxpayer may also accept the lesser of 20% of the purchase price or $3,000 as the cost basis.

“Qualified conversion equipment” is equipment that modifies a gas or diesel motor vehicle so that it can run on electricity, a hydrogen fuel cell, compressed natural gas, liquefied natural gas or liquefied petroleum gas.

A “commercial alternative fueling station” is one that that is used to fuel or charge vehicles with compressed natural gas, liquefied natural gas, liquefied petroleum gas or hydrogen and that has at least one metered-for-fee public access refueling system. It can also be a fueling station that has a metered-for-fee public access recharging system for electric vehicles. A “residential alternative fueling station” involves only compressed natural gas.

For both credits, any credit amount above the taxpayer’s liability will not be refunded to the taxpayer. The Energy, Minerals and Natural Resources Department is responsible for certifying a taxpayer for the purposes of obtaining either credit.

This bill appears to be a positive for encouraging people to convert to alternative fuel vehicles by providing a tax incentive.

Outcome: HB 616 died in the House Taxation and Revenue Committee.

Date of Summary:  2/18/13; Updated 5/16/13