Bill Text: HI HB2024 | 2014 | Regular Session | Introduced

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Bill Title: Electric Vehicles; Income Tax Credit

Spectrum: Strong Partisan Bill (Democrat 16-1)

Status: (Introduced - Dead) 2014-01-21 - Referred to EEP, TRN, FIN, referral sheet 3 [HB2024 Detail]

Download: Hawaii-2014-HB2024-Introduced.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	2024
TWENTY-SEVENTH LEGISLATURE, 2014
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to electric vehicles.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that the use of electric vehicles improves fuel economy, lowers fuel costs, and reduces vehicle emissions.  These benefits help to reduce the State's reliance on imported petroleum, thereby increasing energy security and sustainability.

     The purpose of this Act is to encourage the purchase of electric vehicles through the allowance of an income tax credit for the purchase of electric vehicles. 

     SECTION 2.  Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§235-    Tax credit for purchasers of electric vehicles.  (a)  Each purchaser of a new electric vehicle who files an individual or corporate net income tax return for a taxable year may claim an income tax credit under this section against the taxpayer's net income tax liability.

     (b)  The tax credit shall be an amount equal to     per cent of the cost of the purchase of a new electric vehicle.

     (c)  The cost upon which the tax credit is computed shall be determined at the entity level.  In the case of a partnership, S corporation, estate, trust, or other pass through entity, distribution and share of the credit shall be determined by rule.

     If a deduction is taken under section 179 (with respect to election to expense depreciable business assets) of the Internal Revenue Code, no tax credit shall be allowed for that portion of costs for which a deduction was taken.  Additionally, if a deduction is taken under section 30 (with respect to federal credits for qualified plug-in electric vehicles) of the Internal Revenue Code, no tax credit shall be allowed for that portion of costs for which a deduction was taken.

     The basis of eligible property for depreciation or accelerated cost recovery system purposes for state income taxes shall be reduced by the amount of credit allowable and claimed.  No deduction shall be allowed for that portion of otherwise deductible qualified costs for which a credit is claimed under this section.

     (d)  All claims for a tax credit under this section, including amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit is claimed.  Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

     Spouses who do not file a joint tax return shall only be entitled to make this election to the extent that they would have been entitled to make the election had they filed a joint tax return.

(e)  The director of taxation:

     (1)  Shall prepare any forms that may be necessary to claim a credit under this section;

     (2)  May require the taxpayer to furnish information to ascertain the validity of the claim for credit made under this section; and

     (3)  May adopt rules pursuant to chapter 91 to effectuate this section.

     (f)  For purposes of this section:

     "New electric vehicle" means a vehicle, with four or more wheels, that draws propulsion energy from a battery with at least four kilowatt hours of energy storage capacity that can be recharged from an external source of electricity, and whose use commences with the taxpayer."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2014.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Electric Vehicles; Income Tax Credit

 

Description:

Establishes an income tax credit for purchasers of new electric vehicles.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.