2010 -- S 2702

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2010

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A N A C T

RELATING TO TAXATION -- ALTERNATIVE FUEL VEHICLE AND FILLING STATION

TAX CREDIT

     Introduced By: Senators Felag, Sosnowski, DiPalma, Lanzi, and Lynch

     Date Introduced: March 18, 2010

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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

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adding thereto the following chapter:

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     CHAPTER 68

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     ALTERNATIVE FUEL VEHICLE AND FILLING STATION TAX CREDIT

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     44-68-1. Definitions. [Effective until January 1, 2015]. – As used in this chapter:

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

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Policy Act of 1998 (P.L. 102-486, Sec 301 (42 U.S.C. section 13211)). The definition of

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alternative fuel shall also include bio-diesel and ethanol fuel. As defined by this chapter, bio-

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diesel can be produced from feedstock which includes:

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     (i) Any virgin (first use) vegetable oil;

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     (ii) Yellow grease;

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     (iii) Waste (second use) vegetable oils; and

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     (iv) Animal fats and tallows.

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     Bio-diesel and ethanol fuel infrastructures under the 1998 Energy Policy Act will allow

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the State of Rhode Island energy office to issue grants based on the availability of funding to any

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individual or entity for the development of bio-diesel production facilities in Rhode Island.

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

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

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

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

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     44-68-2. Tax credits for businesses. [Effective until January 1, 2015]. – (a) There

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shall be allowed as a credit against the tax liability imposed against a taxpayer pursuant to chapter

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

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January 1, 2010, and prior to January 1, 2015, an amount equal to fifty percent (50%) of the

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capital, labor, and equipment costs incurred by the taxpayer directly for the construction of any

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filling station or improvements to any existing filling station in order to provide alternative fuel or

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for the construction of any recharging station or improvements to any existing recharging station

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in order to provide for the recharging of electric vehicles.

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

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

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after January 1, 2010, and prior to January 1, 2015, an amount equal to fifty percent (50%) of the

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

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

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alternative fuels.

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

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

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

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

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

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taxpayer has not transferred or assigned its credits pursuant to subsection (c) of this section, the

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taxpayer may carry forward the unused credit or any unused portions of the credit and apply the

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credit to its tax liability for any one or more of the succeeding five (5) years.

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     44-68-3. Repeal. – The provisions of this chapter shall expire on and are repealed on

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January 1, 2015.

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     SECTION 2. This act shall take effect upon passage.

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LC01490

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION -- ALTERNATIVE FUEL VEHICLE AND FILLING STATION

TAX CREDIT

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     This act would create a tax credit for costs incurred for the construction of any filling

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station or improvements to any existing fueling station in order to provide alternative fuel or

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construction or improvements to any recharging stations.

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     This act would take effect upon passage.

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LC01490

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