Chapter 135

2003 -- H 5040 SUBSTITUTE A

Enacted 07/10/03

A N A C T

RELATING TO CORPORATIONS -- ALTERNATIVE FUELED VEHICLE AND FILLING

STATION CREDIT

Introduced By: Representatives McNamara, Naughton, Trillo, Sherlock, and Flaherty

Date Introduced: January 14, 2003

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 39.2

ALTERNATIVE FUELED VEHICLE AND FILLING STATION TAX CREDIT

44-39.2-1. Definitions. -- As used in this chapter:

(1) “Alternative fuel” and “alternative fueled vehicle” are defined pursuant to the Energy

Policy Act of 1992 (P.L. 102-486, Sec. 301 (42 U.S.C. 13211)).

(2) “Incremental costs” means the increase to the sale price of an alternative fueled

vehicle, above the sale price of a comparable motor vehicle similar in all other respects but for the

equipment necessary to render it an alternative fueled vehicle, which increased sale price is

attributable to the vehicle’s being equipped to render it an alternative fueled vehicle.

44-39.2-2. Tax credits for businesses. -- (a) There is allowed as a credit against the tax

liability imposed against a taxpayer pursuant to chapters 11, 13, or 30 of this title, with respect to

income years of the taxpayer commencing on or after January 1, 1998, and prior to January 1,

2008, an amount equal to fifty percent (50%) of the capital, labor and equipment costs incurred

by the taxpayer directly for the construction of any filling station or improvements to any existing

filling station in order to provide alternative fuel or for the construction of any recharging station

or improvements to any existing recharging station in order to provide for the recharging of

electric vehicles.

(b) There is allowed as a credit against the tax imposed on a taxpayer pursuant to chapters

11, 13, or 30 of this title, with respect to income years of the taxpayer commencing on or after

January 1, 1998, and prior to January 1, 2008, an amount equal to fifty percent (50%) of the

incremental costs incurred by the taxpayer for purchase of alternative fueled motor vehicles or the

capital, labor and equipment costs of the conversion of motor vehicles so that they can use

alternative fuels.

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.

(d) In the case where the credit allowed by this chapter exceeds the amount of tax liability

imposed against a taxpayer pursuant to chapters 11, 13, or 30 of this title, and to the extent the

taxpayer has not transferred or assigned its credits pursuant to subsection (c), 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 five (5) years.

44-39.2-3. Repeal. -- The provisions of this chapter shall expire on and are repealed on

January 1, 2008.

SECTION 2. Chapter 44-13 of the General Laws entitled "Public Service Corporation

Tax" is hereby amended to read as follows:

44-13-5. Deductions for merchandise sales and alternative fuel -- (a) In the case of

every corporation whose principal business is manufacturing, selling, and distributing to the

public illuminating or heating gas, and upon which a tax is imposed under section 44-13-4(5), and

in the case of every corporation upon which a tax is imposed under section 44-13-4(2), there shall

be allowed as a deduction from the gross earnings from merchandise sales reported by that

corporation in its gross earnings tax returns, the net invoice price plus the transportation cost of

the merchandise.

(b) In the case of every corporation upon which a tax is imposed under section 44-13-4

there shall be allowed as a deduction from the gross earnings from sales reported by the

corporation in its gross earnings tax returns, the total of gross earnings from the sale of alternative

fuel as defined pursuant to the Energy Policy Act of 1992 (P.L. 102-486, Sec. 301 (42 U.S.C.

section 13211)) when used as a separately metered motor fuel that powers a motor vehicle, from

January 1, 1998 until December 31, 2007.

SECTION 3. This act shall take effect upon passage, with retroactive applicants to

January 1, 2003.

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LC00257/SUB A

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