2012 -- H 7376

=======

LC00774

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

____________

A N A C T

RELATING TO TAXATION -- ELIMINATING EXCISE TAX FOR QUALIFIED PLUG-IN

ELECTRIC DRIVE VEHICLES

     

     

     Introduced By: Representatives Handy, Tanzi, MacBeth, Slater, and Ruggiero

     Date Introduced: February 02, 2012

     Referred To: House Finance

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Chapter 44-34 of the General Laws entitled "Excise on Motor Vehicles and

1-2

Trailers" is hereby amended by adding thereto the following section:

1-3

     44-34-15. Exemption for plug-in electric drive vehicles. – (a) For purposes of sections

1-4

44-34-15 and 44-18-40.2 the following words shall have the meanings:

1-5

     (1) “Excise tax” or sales tax” means the tax imposed by this title.

1-6

     (2) “Qualified plug-in electric drive vehicle” means a four-wheeled motor vehicle that:

1-7

     (i) Is made by a manufacturer;

1-8

     (ii) Is manufactured primarily for use on public streets, roads, and highways;

1-9

     (iii) Is acquired for use or lease by the taxpayer and not for resale;

1-10

     (iv) Is rated at not more than eight thousand, five hundred pounds (8,500 lbs.) unloaded

1-11

gross vehicle weight;

1-12

     (v) Has a maximum speed capability of at least fifty-five (55) miles per hour;

1-13

     (vi) Is propelled to a significant extent by an electric motor that draws electricity from a

1-14

battery that:

1-15

     (A) Has a capacity of not less than four kilowatt hours (4 kwh); and

1-16

     (B) Is capable of being recharged from an external source of electricity.

1-17

     (viii) Is acquired by the taxpayer on or after October 1, 2010, but before July 1, 2012.

1-18

     (b) Tax credit. (1) A credit is allowed against the excise tax or sales tax imposed for a

1-19

qualified plug-in electric drive vehicle.

2-1

     (2) Subject to the limitations of subsections (c) through (e) of this section, the credit

2-2

allowed under this section equals one hundred percent (100%) of the excise tax or sales tax

2-3

imposed for a vehicle.

2-4

     (c) The credit allowed under this section may not exceed two thousand dollars ($2,000).

2-5

     (d) The credit allowed under this section is limited to the acquisition of:

2-6

     (1) One vehicle per individual; and

2-7

     (2) Ten (10) vehicles per business entity.

2-8

     (e) A credit may not be claimed under this section:

2-9

     (1) Unless the vehicle is registered in the state; or

2-10

     (2) Unless the owner has already conformed to any applicable state or federal laws or

2-11

regulations governing clean-fuel vehicle or electric vehicle purchases applicable during the

2-12

calendar year in which the vehicle is titled.

2-13

     (f) The department of revenue shall administer the credit under this section.

2-14

     SECTION 2. Chapter 44-18 of the General Laws entitled "Sales and Use Taxes -

2-15

Liability and Computation" is hereby amended by adding thereto the following section:

2-16

     44-18-40.2. Exemption for qualified plug-in electric drive vehicles. – Notwithstanding

2-17

any provision of the general laws to the contrary, the gross receipts from the sale of a qualified

2-18

plug-in electric drive vehicles are exempt from the taxes imposed by this chapter and shall be

2-19

taxed in conformance with the provisions of section 44-34-15.

2-20

     SECTION 3. This act shall take effect upon passage.

     

=======

LC00774

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION -- ELIMINATING EXCISE TAX FOR QUALIFIED PLUG-IN

ELECTRIC DRIVE VEHICLES

***

3-1

     This act would exempt qualified plug-in electric drive vehicles from excise taxes.

3-2

     This act would take effect upon passage.

     

=======

LC00774

=======

H7376