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Alternative Fuel Motor Vehicle Income Tax Credits

Concerning modifications to the income tax credits for alternative fuel motor vehicles, and, in connection therewith, fixing specified dollar amounts for the credits, allowing the credit to be assigned to a financing entity, requiring vehicle identification number tracking of the motor vehicle for which a credit is claimed, and making an appropriation.
2016 Regular Session
Fiscal Policy & Taxes
Bill Summary

The act makes changes to 2 income tax credits available to taxpayers who purchase alternative fuel motor vehicles and trucks. The act:
  • Fixes a specified dollar amount for the income tax credits for motor vehicles and trucks instead of requiring the taxpayer to calculate the income tax credit using formulas based on a specified percentage of the actual cost incurred or battery size;
  • Distinguishes between purchases and leases of a motor vehicle or truck in fixing the values of the income tax credits;
  • Requires a lessee to enter into a lease with a term of not less than 2 years to qualify for the income tax credit on or after January 1, 2017;
  • Removes the income tax credit for the purchase or lease of light duty passenger motor vehicle diesel-electric hybrids and light duty passenger motor vehicle, light duty, truck, and medium duty truck diesel-electric hybrid conversions;
  • Makes all used motor vehicles and trucks ineligible for the credits, unless the motor vehicle is being converted;
  • Allows a taxpayer to assign the income tax credit to a financing entity and thus forfeit the right to claim the tax credit on the taxpayer's tax return in exchange for the full nominal value of the income tax credit, minus an administrative fee not to exceed $150;
  • Requires the taxpayer claiming an income tax credit on or after January 1, 2017, to provide the department of revenue with the motor vehicle's or truck's vehicle identification number; and
  • Requires the department of revenue to commence tracking the vehicle identification number of the motor vehicle or truck for which a credit is claimed.

(Note: This summary applies to this bill as enacted.)


Became Law


Bill Text

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