SCS/SB 749 - This act creates an income tax credit for the costs of constructing a qualified alternative fuel vehicle refueling property. The tax credit shall not exceed the lesser of twenty thousand dollars or twenty percent of the costs directly associated with the purchase and installation of any alternative fuel storage and dispensing equipment. The cumulative amount of credits which may be claimed shall not exceed three million dollars for taxable year 2009. For taxable year 2010, the cumulative amount of tax credits which may be claimed is reduced to two million dollars, and for taxable year 2011, the amount is further reduced to one million dollars. The tax credit is non-refundable, but may be carried forward for two subsequent tax years. The tax credit is fully transferable. The act contains a recapture provision for refueling properties which cease sales of alternative fuel. The provisions of the act creating the tax credit program will automatically expire six years from the effective date of the act if not re-authorized.
The act creates an income tax deduction for tax year 2009, for a taxpayer's purchase of qualified hybrid vehicles. The deduction will equal the lesser of one thousand five hundred dollars or ten percent of the purchase price of the vehicle. The tax deduction must be taken in the year in which the purchase is made.
The act creates a tax credit for the purchase of E-85 gasoline and biodiesel. The tax credit will be equal to: twenty five cents per gallon of ethanol or five cents per gallon of biodiesel for 2009; twenty cents per gallon of ethanol or three cents per gallon of biodiesel for 2010 and 2011; and fifteen cents per gallon of ethanol or five cents per gallon of biodiesel for 2012 and each subsequent year. The tax credit must be for at least fifty dollars, but may not exceed five hundred dollars per taxpayer per year. The aggregate amount of tax credits which may be redeemed by all taxpayers in any given year shall not exceed five hundred thousand dollars. The tax credit is non-refundable, but may be carried forward three years. The provisions allowing for the tax credit for purchases E-85 gasoline and biodiesel will sunset six years from the effective date of the act unless re-authorized.
This act is similar to SS/SCS/HCS/HB 1092 (2006), Senate Bill 842 (2006), and Senate Bill 40 (2007).