2012 -- S 2125

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO TAXATION - ALTERNATIVE FUEL INFRASTRUCTURE INCENTIVE

     Introduced By: Senators Miller, Felag, Bates, Sosnowski, and DiPalma

     Date Introduced: January 18, 2012

     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 39.4

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ALTERNATIVE FUEL INFRASTRUCTURE INCENTIVE

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     44-39.4-1. Definitions. – As used in this chapter:

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     (1) "Alternative fuel for motor vehicles" means any of the following, which is used for

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the propulsion of motor vehicles:

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     (i) Compressed natural gas;

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     (ii) Liquefied natural gas;

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     (iii) Liquefied petroleum gas;

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     (iv) Hydrogen;

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     (v) Any liquid at least eighty-five percent (85%) of the volume of which consists of

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ethanol;

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     (vi) Electricity.

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     44-39.4-2. Tax credits for installing alternative fuel facilities. -- (a) Refueling property

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credit – A taxpayer that constructs and installs and places in service in this state a qualified

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commercial or residential facility for dispensing alternative fuel for motor vehicles is allowed a

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credit equal to thirty percent (30%) of the cost to the taxpayer for the purchase of any equipment

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that is used for dispensing or storing alternative fuel for motor vehicles and thirty percent (30%)

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of the cost to the taxpayer for the purchase of constructing and installing the part of the

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dispensing facility, including pumps, storage tanks, and related equipment, that is used for

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dispensing or storing alternative fuel for motor vehicles. A facility is qualified if the equipment

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used to store or dispense alternative fuel for motor vehicles is labeled for this purpose and clearly

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identified as associated with alternative fuel. For commercial facilities, the entire credit may not

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be taken for the taxable year in which the facility is placed in service but must be taken in three

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(3) equal annual installments beginning with the taxable year in which the facility is placed in

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service. If, in one of the years in which the installment of a credit accrues, the portion of the

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facility directly and exclusively used for dispensing or storing alternative fuel for motor vehicles

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is disposed of or taken out of service. The credit expires and the taxpayer may not take any

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remaining installment of the credit. The taxpayer may, however, take the portion of an installment

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that accrued in a previous year and was carried forward to the extent permitted under chapters 11,

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13, 14, 15, 17 and 30 of this title. For residential facilities, the entire value of the credit must be

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claimed in the taxable year the costs are incurred.

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     (b) Property used by tax-exempt entity – In the case of any qualified commercial facility

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for dispensing alternative fuel for motor vehicles sold to a tax-exempt nonprofit organization or

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unit of state or local government, the person who sold such property to the person or entity using

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the facility shall be treated as the taxpayer that placed the facility in service. The person taking

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the credit must clearly disclose to the entity purchasing the property for the qualified facility any

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credit allowed under this section.

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      SECTION 2. This act shall take effect upon passage and section 44-39.4-2 would be

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repealed on January 1, 2016.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION - ALTERNATIVE FUEL INFRASTRUCTURE INCENTIVE

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     This act would create tax incentives for the installation of alternative fuel facilities.

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     This act would take effect upon passage and section 44-39.4-2 would be repealed on

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January 1, 2016.

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LC00467

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