2016 -- H 7713

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LC004728

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO TAXATION

     Introduced By: Representatives McKiernan, Carnevale, Handy, Regunberg, and Amore

     Date Introduced: February 24, 2016

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by

adding thereto the following chapter:

CHAPTER 70

ELECTRIC VEHICLE RECHARGING PROPERTY CREDIT

     44-70-1. Definitions. -- As used in this chapter unless the context otherwise requires:

     (1) "Department" means the commerce department.

     (2) "Electric vehicle recharging property" means property in this state owned by an

eligible applicant and used for recharging electric motor vehicles owned by the eligible applicant.

     (3) "Eligible applicant" means a business entity or individual that is the owner of an

electric vehicle recharging property.

     (4) "Qualified property" means an electric vehicle recharging property.

     44-70-2. Electric vehicle recharging property credit. -- (a) A taxpayer shall be allowed

a credit, to be computed as provided in this chapter, against the tax imposed by chapters 11, 14,

17, and 30 of this title. For tax years beginning on or after January 1, 2017, but before January 1,

2019, any eligible applicant who installs and operates a qualified property shall be allowed a

credit against the tax otherwise due under chapters 11, 14, 17, and 30 of this title for the tax year

in which the applicant is constructing or installing the qualified property. The credit allowed in

this section per eligible applicant shall equal the total capital, labor and equipment costs directly

associated with the installation of any recharging equipment on the qualified property, but shall

not include the following:

     (1) Costs associated with the purchase of land upon which to place a qualified property;

     (2) Costs associated with the purchase of an existing qualified property; or

     (3) Costs for the construction or purchase of any other type of structure to be located on

the qualified property.

     (b) Tax credits allowed by this section shall be claimed by the eligible applicant at the

time the applicant files a return for the tax year in which the recharging facility was placed in

service at a qualified property, and shall be applied against the tax liability imposed by chapters

11, 14, 17 and 30 of this title, after all other credits provided by law have been applied.

     (c) The amount of the credit allowed by this chapter may be transferred and/or assigned

by one taxpayer to another; provided, that the transferee is a parent, subsidiary, or affiliate of, or

is subject to common ownership, management and control with, the transferor. If the amount of

the tax credit exceeds the eligible applicant's tax liability, the difference shall not be refundable.

In the case where the credit allowed by this chapter exceeds the amount of tax liability imposed

against a taxpayer pursuant to chapters 11, 14, 17, and 30 of this title, and to the extent the

taxpayer has not transferred or assigned its credits pursuant to this subsection, the taxpayer may

carry forward the unused credit or any unused portions of the credit and apply the credit to its tax

liability for any one or more of the succeeding two (2) years.

     (d) Any qualified property for which an eligible applicant receives tax credits under this

section, which ceases to recharge electric vehicles shall cause the forfeiture of such eligible

applicant's tax credits provided under this section for the taxable year in which the qualified

property ceased to recharge electric vehicles and for future taxable years with no recapture of tax

credits obtained by an eligible applicant with respect to such applicant's tax years which ended

before the recharging of electric vehicles ceased.

     (e) The department and the department of revenue shall promulgate rules and regulations

in connection with the procedure by which the tax credits in this section may be claimed, in

accordance with the provisions of chapter 35 of title 42 (administrative procedures act).

     (f) Any eligible applicant desiring to claim a tax credit under this section shall submit the

appropriate application for such credit with the department. The application for a tax credit under

this section shall include any information required by the department. The department shall

review the applications and certify to the department of revenue each eligible applicant that

qualifies for the tax credit.

     (g) The provisions of the new program authorized under this section shall automatically

sunset two (2) years after its effective date unless reauthorized by an act of the general assembly.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION

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     This act would establish a tax credit in connection with the installation of charging

stations for electric-operated vehicles.

     This act would take effect upon passage.

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