Alternative Fuel Vehicle (AFV) Tax Credit

Transcription

1 This does not constitute tax advice. All persons considering use of available incentives should consult with their own tax professional to determine eligibility, specific amount of benefit available, if any, and further details. STATE OF LOUISIANA Alternative Fuel Vehicle (AFV) Tax Credit Short Description: The State of Louisiana offers an income tax credit for the purchase of a new alternative fuel vehicle, including an electric-powered vehicle, and alternative fuelling equipment, such as a home charger. Beneficiary: Purchaser of an electric vehicle or EVSE in Louisiana Type of Incentive: Income Tax Credit Effective Dates: Current benefit, expected expiration January 1, 2020 Value of Benefit: An income tax credit of 30% of the cost of converting a vehicle to operate on an alternative fuel, the incremental cost of purchasing an original equipment manufacturer AFV, and the cost of alternative fueling equipment. Alternatively, a taxpayer may take a tax credit of 10% of the cost of the motor vehicle, up to $2,500. Full Description: The state offers an income tax credit of 30% of the cost of converting a vehicle to operate on an alternative fuel, the incremental cost of purchasing an original equipment manufacturer AFV, and the cost of alternative fueling equipment. Alternatively, a taxpayer may take a tax credit of 10% of the cost of the motor vehicle, up to $2,500. To qualify for the tax credit, vehicles must be dedicated AFVs and registered in Louisiana. Commercial vehicles should primarily be used in Louisiana and operate for at least four years. For the purpose of this incentive, alternative fuels include natural gas; propane; non-ethanol based advanced biofuels (excluding flexible fuel vehicles); and electricity if the vehicle has at least four wheels, is primarily for on-street use, can attain a minimum speed of 55 miles per hour, has a minimum battery capacity of four kilowatt-hours, and can be charged externally. State Statutory References: Senate Bill 172: Senate Bill 243: Revised Statute 47:6035: Other Link(s): (AFDC Website) (LA Division of Administration Website) Contact Info: Questions can be directed to William Little

2 10/17/2017 LA Law Print RS 47: Tax credit for conversion of vehicles to alternative fuel usage A. The intent of this Section is to provide an incentive to persons or corporations to invest in qualified clean-burning motor vehicle fuel property. Any person or corporation purchasing such property as specified in this Section shall be allowed a nonrefundable credit against income tax liability as determined pursuant to Subsection C of this Section. B. As used in this Section, the following words and phrases shall have the meaning ascribed to them in this Subsection unless the context clearly indicates otherwise: (1) "Alternative fuel" means natural gas, liquified petroleum gas, and any nonethanol based advanced biofuel. "Alternative fuel" shall also mean electricity if the vehicle meets all of the following criteria: (a) Has at least four wheels. (b) Is manufactured primarily for use on public streets, roads, and highways and is able to attain a maximum speed of at least fifty-five miles per hour. (c) Is propelled to a significant extent as determined by rules adopted by the Department of Revenue in accordance with the Administrative Procedure Act, by an electric motor which draws electricity from a battery which has a capacity of not less than four kilowatt hours and is capable of being recharged from an external source of electricity. (2) "Cost of qualified clean-burning motor vehicle fuel property" shall mean any of the following: (a) The retail cost paid by the owner of a motor vehicle for the purchase and installation by a technician of qualified clean-burning motor vehicle fuel property certified by the United States Environmental Protection Agency to modify a motor vehicle which is propelled by gasoline or diesel so that the motor vehicle may be propelled by an alternative fuel, provided the motor vehicle is registered in this state and, in the case of a commercial vehicle, is registered and primarily used in this state for four years after the conversion. (b) The cost to the owner of a new motor vehicle purchased at retail originally equipped to be propelled by an alternative fuel, provided the motor vehicle is registered in this state. (c) The cost of property that is directly related to the delivery of an alternative fuel into the fuel tank of motor vehicles propelled by alternative fuel, including compression equipment, storage tanks, and dispensing units for alternative fuel at the point where the fuel is delivered, provided the property is installed and located in this state and no credit has been previously claimed on the cost of such property. The cost of property that is directly related to the delivery of an alternative fuel into the fuel tank of motor vehicles propelled by alternative fuel shall not include costs associated with exploration and development activities necessary for severing natural resources from the soil or ground or costs associated with fueling station infrastructure that is not directly related to the delivery of an alternative fuel into the fuel tank of motor vehicles. (3) "Qualified clean-burning motor vehicle fuel property" shall mean equipment necessary for a motor vehicle to operate on an alternative fuel and shall not include equipment necessary for operation of a motor vehicle on gasoline or diesel. C.(1) The credit provided for in this Section shall be allowed against individual or corporate income tax for the taxable period in which the qualified clean-burning motor vehicle fuel property, as defined in Subparagraphs (B)(2)(a) and (c) of this Subsection, is purchased and installed and shall be equal to thirty percent of the cost of the qualified clean-burning motor vehicle fuel property. (2) Nothing in this Section shall be construed to authorize a tax credit for the costs of a purchase of, or conversion of a vehicle to, a flexible fuel vehicle that is designed to run on an alternative fuel and either petroleum gasoline or petroleum diesel if the vehicle has only a single fuel storage and delivery system and retains the capability to be propelled by petroleum gasoline or petroleum diesel. D. In cases of a new motor vehicle purchased by a taxpayer with qualified clean-burning motor vehicle fuel property, as defined in Subparagraph (B)(2)(b) of this Subsection, if installed by the vehicle's manufacturer the taxpayer may claim a credit against individual or corporate income tax for the taxable period in which the new motor vehicle is purchased equal to ten percent of the cost of the motor vehicle or two thousand five hundred dollars, whichever is less, provided the motor vehicle is registered in this state. 1/2

3 10/17/2017 LA Law Print E.(1) For purchases of qualified clean-burning motor vehicle fuel property made before January 1, 2018, if the tax credit allowed pursuant to the provisions of this Section exceeds the amount of income taxes due or if the taxpayer owes no state income taxes, any excess of the tax credit over the income tax liability against which the credit can be applied shall constitute an overpayment, as defined in R.S. 47:1621(A), and the secretary shall make a refund of the overpayment from the current collections of the taxes imposed by Chapter 1 of Subtitle II of this Title, as amended. The right to a refund of any overpayment shall not be subject to the requirements of R.S. 47:1621(B). (2) For purchases of qualified clean-burning motor vehicle fuel property made on or after January 1, 2018, the tax credit allowed pursuant to the provisions of this Section shall be nonrefundable. F. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the tax credit that would have been allowed for a joint return. G. The secretary of the Department of Revenue in consultation with the secretary of the Department of Natural Resources shall promulgate rules and regulations in accordance with the Administrative Procedure Act as are necessary to implement the provisions of this Section. H. Commencing no later than January 31, 2016, the House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs shall review the credit authorized pursuant to the provisions of this Section to determine if the economic benefit provided by such credit outweighs the loss of revenue realized by the state as a result of awarding such credit. The House and Senate committees shall make a specific recommendation no later than March 1, 2017, to either continue the credit or to terminate the credit. I. The credit provided for pursuant to the provisions of this Section shall terminate and shall have no effect beginning January 1, Acts 2009, No. 469, 1, eff. July 9, 2009, applicable to amounts paid after Jan. 1, 2009; Acts 2013, No. 219, 1, eff. June 10, 2013, Acts 2013, No. 427, 1, eff. Jan. 1, 2014; Acts 2015, No. 125, 2, eff. July 1, 2015; Acts 2015, No. 357, 1, eff. June 29, 2015 Acts 2016, 1 st Ex. Sess., No. 29, 2; Acts 2017, No. 325, 1, 2, eff. June 22, 2017; Acts 2017, No. 400, 1 and 4, eff. June 26, 2017; Acts 2017, No. 403, 2, eff. June 26, NOTE: See Acts 2015, No. 125, 7, regarding applicability. NOTE: See Acts 2016, 1 st Ex. Sess., No. 29, 2, regarding effectiveness. 2/2

4 2017 Regular Session SENATE BILL NO. 172 BY SENATOR MORRELL ACT No AN ACT 2 To amend and reenact R.S. 47:227 as amended by Section 2 of Act No. 125, of the Regular Session of the Legislature, R.S. 47:297.2, 6019(A)(1)(a), and 6035(D) and 4 to enact R.S. 25:1226.4(D), R.S. 47:34(F), 37(I), (D), (E), (D), (I), 297(Q), 297.9(D), 6025(E), and 6035(I), and to repeal R.S. 6 47:227 as amended by Section 5 of Act 125 of the 2015 Regular Session of the 7 Legislature, relative to tax credits; to provide for the sunset of certain tax credits; to 8 provide for an effective date; and to provide for related matters. 9 Be it enacted by the Legislature of Louisiana: 10 Section 1. R.S. 25:1226.4(D) is hereby enacted to read as follows: Tax exemptions and credits 12 * * * 13 D. Beginning January 1, 2020, no contracts shall be entered into for 14 credits pursuant to the provisions of this Section. 15 * * * 16 Section 2. R.S. 47:227 as amended by Section 2 of Act No. 125 of the 2015 Regular 17 Session of the Legislature, R.S. 47:297.2, 6019(A)(1)(a), and 6035(D) are hereby amended 18 and reenacted and R.S. 25:1226.4(D), R.S. 47:34(F), 37(I), (D), (E), (D), (I), 297(Q), 297.9(D), 6025(E), and 6035(I) are hereby enacted to read 20 as follows: Corporation tax credit 22 * * * 23 F. The credit provided for pursuant to the provisions of this Section 24 shall terminate and shall have no effect beginning January 1, * * * Page 1 of 5

5 SB NO Tax credit for contributions to educational institutions 2 * * * 3 I. The credit provided for pursuant to the provisions of this Section shall 4 terminate and shall have no effect beginning January 1, * * * Offset against tax 7 Every insurance company shall be entitled to an offset against any tax 8 incurred under this Chapter, in the amount of any taxes, based on premiums, paid by 9 it during the preceding twelve months, by virtue of any law of this state. Beginning 10 on and after July 1, 2015, the offset shall be equal to seventy-two percent of the 11 amount of any taxes, based on premiums. 12 * * * Corporation tax credit; re-entrant jobs credit 14 * * * 15 D. The credit provided for pursuant to the provisions of this Section 16 shall terminate and shall have no effect beginning January 1, * * * Jobs credit 19 * * * 20 E. The credit provided for pursuant to the provisions of this Section 21 shall terminate and shall have no effect beginning January 1, * * * Tax credit for employment of first-time nonviolent offenders 24 * * * 25 D. The credit provided for pursuant to the provisions of this Section 26 shall terminate and shall have no effect beginning January 1, * * * Tax credit for contributions to educational institutions 29 * * * 30 I. The credit provided for pursuant to the provisions of this Section shall Page 2 of 5

6 SB NO terminate and shall have no effect beginning January 1, * * * Reduction to tax due 4 * * * 5 Q. The credits provided for pursuant to the provisions of this Section 6 shall terminate and shall have no effect beginning January 1, * * * Reduction to tax due 9 A. A person who maintains a household which that includes one or more 10 dependents who are physically or mentally incapable of caring for themselves may 11 take as a credit against the state income tax imposed by this Part the full amount of 12 a tax credit equal to the applicable percentage of employment-related expenses 13 allowable pursuant to Section 21 of the Internal Revenue Code. Any tax credit 14 otherwise allowed under this Section which that is not used by the taxpayer in a 15 particular year may be carried forward and offset against the taxpayer's tax liability 16 for the next succeeding tax year. 17 B. The credit provided for pursuant to the provisions of this Section 18 shall terminate and shall have no effect beginning January 1, * * * Reduction to tax due; amounts paid by certain military service members 21 and dependents for certain hunting and fishing licenses 22 * * * 23 D. The credit provided for pursuant to the provisions of this Section 24 shall terminate and shall have no effect beginning January 1, * * * Tax credit; rehabilitation of historic structures 27 A.(1)(a) There shall be a credit against income and corporation franchise tax 28 for the amount of eligible costs and expenses incurred during the rehabilitation of a 29 historic structure located in a downtown development or a cultural district. The 30 amount of the credit shall equal twenty-five percent of the eligible costs and Page 3 of 5

7 SB NO expenses of the rehabilitation incurred prior to January 1, 2018, regardless of the 2 year in which the property is placed in service. The amount of the credit shall equal 3 twenty percent of the eligible costs and expenses of the rehabilitation incurred on or 4 after January 1, 2018 and before January 1, 2022, regardless of the year in which 5 the property is placed in service. No credit is authorized pursuant to this Section 6 for expenses incurred on or after January 1, * * * Tax credit for Louisiana Citizens Property Insurance Corporation assessment 9 * * * 10 E. The credit provided for pursuant to the provisions of this Section 11 shall terminate and shall have no effect beginning January 1, * * * Tax credit for conversion of vehicles to alternative fuel usage 14 * * * 15 D. In cases where no previous credit has been claimed pursuant to Subsection 16 C of this Section for the cost of qualified clean-burning motor vehicle fuel property 17 in of a new motor vehicle purchased by a taxpayer with qualified clean-burning 18 motor vehicle fuel property, as defined in Subparagraph (B)(2)(b) of this 19 Subsection, if installed by the vehicle's manufacturer and the taxpayer is unable to, 20 or elects not to determine the exact cost which is attributable to such property, the 21 taxpayer may claim a credit against individual or corporate income tax for the 22 taxable period in which the new motor vehicle is purchased equal to seven and two 23 tenths ten percent of the cost of the motor vehicle or one two thousand five hundred 24 dollars, whichever is less, provided the motor vehicle is registered in this state. 25 * * * 26 I. The credit provided for pursuant to the provisions of this Section shall 27 terminate and shall have no effect beginning January 1, * * * 29 Section 3. R.S. 47:227 as amended by Section 5 of Act No. 125 of the 2015 Regular 30 Session of the Legislature is hereby repealed. Page 4 of 5

8 SB NO Section 4. This Act shall become effective upon signature by the governor or, if not 2 signed by the governor, upon expiration of the time for bills to become law without signature 3 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If 4 vetoed by the governor and subsequently approved by the legislature, this Act shall become 5 effective on the day following such approval. PRESIDENT OF THE SENATE SPEAKER OF THE HOUSE OF REPRESENTATIVES GOVERNOR OF THE STATE OF LOUISIANA APPROVED: Page 5 of 5

9 2017 Regular Session SENATE BILL NO. 243 BY SENATOR PEACOCK ACT No AN ACT 2 To amend and reenact R.S. 47:6035(A), (B)(2), (C)(1), (D), and (E) and to repeal R.S. 3 47:6035(C)(1) and (D) as amended by Section 5 of Act 125 of the 2015 Regular 4 Session of the Legislature, relative to the tax credit for conversion of vehicles to 5 alternative fuel usage; to remove the refundability of the credit; to reduce the credit 6 rate for the conversion of vehicles and fueling equipment; to provide for the 7 calculation of the credit for purchases of new vehicles originally equipped to be 8 propelled by an alternative fuel; to provide for an effective date; and to provide for 9 related matters. 10 Be it enacted by the Legislature of Louisiana: 11 Section 1. R.S. 47:6035(A), (B)(2), (C)(1), (D), and (E) are hereby amended and 12 reenacted to read as follows: Tax credit for conversion of vehicles to alternative fuel usage 14 A. The intent of this Section is to provide an incentive to persons or 15 corporations to invest in qualified clean-burning motor vehicle fuel property. Any 16 person or corporation purchasing such property as specified in this Section shall be 17 allowed a nonrefundable credit against income tax liability as determined pursuant 18 to Subsection C of this Section. 19 B. As used in this Section, the following words and phrases shall have the 20 meaning ascribed to them in this Subsection unless the context clearly indicates 21 otherwise: Page 1 of 4

10 SB NO * * * 2 (2) "Cost of qualified clean-burning motor vehicle fuel property" shall mean 3 any of the following: 4 (a) The retail cost paid by the owner of a motor vehicle for the purchase and 5 installation by a technician of qualified clean-burning motor vehicle fuel property 6 certified by the United States Environmental Protection Agency to modify a motor 7 vehicle which is propelled by gasoline or diesel so that the motor vehicle may be 8 propelled by an alternative fuel, provided the motor vehicle is registered in this state 9 and, in the case of a commercial vehicle, is registered and primarily used in this 10 state for four years after the conversion. 11 (b) The cost to the owner of a new motor vehicle purchased at retail 12 originally equipped to be propelled by an alternative fuel for the cost of that portion 13 of the motor vehicle which is attributable to the storage of the alternative fuel, the 14 delivery of the alternative fuel to the engine of the motor vehicle, and the exhaust of 15 gases from combustion of the alternative fuel, provided the motor vehicle is 16 registered in this state. 17 (c) The cost of property which that is directly related to the delivery of an 18 alternative fuel into the fuel tank of motor vehicles propelled by alternative fuel, 19 including compression equipment, storage tanks, and dispensing units for alternative 20 fuel at the point where the fuel is delivered, provided the property is installed and 21 located in this state and no credit has been previously claimed on the cost of such 22 property. The cost of property which that is directly related to the delivery of an 23 alternative fuel into the fuel tank of motor vehicles propelled by alternative fuel shall 24 not include costs associated with exploration and development activities necessary 25 for severing natural resources from the soil or ground or costs associated with 26 fueling station infrastructure that is not directly related to the delivery of an 27 alternative fuel into the fuel tank of motor vehicles. 28 * * * 29 C.(1) The credit provided for in Subsection A of this Section shall be allowed 30 against individual or corporate income tax for the taxable period in which the Page 2 of 4

11 SB NO qualified clean-burning motor vehicle fuel property, as defined in 2 Subparagraphs (B)(2)(a) and (c) of this Subsection, is purchased and installed, if 3 applicable, and shall be equal to thirty-six thirty percent of the cost of the qualified 4 clean-burning motor vehicle fuel property. 5 * * * 6 D. In cases where no previous credit has been claimed pursuant to Subsection 7 C of this Section for the cost of qualified clean-burning motor vehicle fuel property 8 in of a new motor vehicle purchased by a taxpayer with qualified clean-burning 9 motor vehicle fuel property, as defined in Subparagraph (B)(2)(b) of this 10 Subsection, if installed by the vehicle's manufacturer and the taxpayer is unable to, 11 or elects not to determine the exact cost which is attributable to such property, the 12 taxpayer may claim a credit against individual or corporate income tax for the 13 taxable period in which the new motor vehicle is purchased equal to seven and two 14 tenths percent of the cost of the motor vehicle or one thousand five hundred dollars, 15 whichever is less, provided the motor vehicle is registered in this state. 16 E.(1) If For purchases of qualified clean-burning motor vehicle fuel 17 property made before January 1, 2018, if the tax credit allowed pursuant to the 18 provisions of this Section exceeds the amount of income taxes due or if the taxpayer 19 owes no state income taxes, any excess of the tax credit over the income tax liability 20 against which the credit can be applied shall constitute an overpayment, as defined 21 in R.S. 47:1621(A), and the secretary shall make a refund of the overpayment from 22 the current collections of the taxes imposed by Chapter 1 of Subtitle II of this Title, 23 as amended. The right to a refund of any overpayment shall not be subject to the 24 requirements of R.S. 47:1621(B). 25 (2) For purchases of qualified clean-burning motor vehicle fuel property 26 made on or after January 1, 2018, the tax credit allowed pursuant to the 27 provisions of this Section shall be nonrefundable. 28 * * * 29 Section 2. R.S. 47:6035(C)(1) and (D) as amended by Section 5 of Act 125 of the Regular Session of the Legislature are hereby repealed. Page 3 of 4

12 SB NO Section 3. This Act shall become effective upon signature by the governor or, if not 2 signed by the governor, upon expiration of the time for bills to become law without signature 3 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If 4 vetoed by the governor and subsequently approved by the legislature, this Act shall become 5 effective on the day following such approval. PRESIDENT OF THE SENATE SPEAKER OF THE HOUSE OF REPRESENTATIVES GOVERNOR OF THE STATE OF LOUISIANA APPROVED: Page 4 of 4