Bill Text: PA HB1083 | 2011-2012 | Regular Session | Introduced

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Bill Title: Providing for a natural gas fleet vehicle tax credit; and imposing penalties.

Spectrum: Moderate Partisan Bill (Republican 51-6)

Status: (Introduced - Dead) 2011-04-20 - Referred to FINANCE [HB1083 Detail]

Download: Pennsylvania-2011-HB1083-Introduced.html

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PRINTER'S NO. 1572
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1083 Session of2011
INTRODUCED BY SAYLOR, DENLINGER, MARSHALL, MOUL, PERRY, PICKETT, WATSON, MAJOR, AUMENT, BAKER, BARRAR, BOYD, CARROLL, CAUSER, CLYMER, CREIGHTON, CUTLER, DALEY, DAVIS, ELLIS, J. EVANS, EVERETT, GABLER, GEIST, GIBBONS, GILLESPIE, GINGRICH, GODSHALL, GRELL, GROVE, HARRIS, HELM, HESS, HICKERNELL, KAUFFMAN, M. K. KELLER, KILLION, KNOWLES, MALONEY, MICOZZIE, MILLER, MUSTIO, OBERLANDER, D. O'BRIEN, PAYNE, PYLE, QUINN, READSHAW, ROCK, SCAVELLO, SIMMONS, STEPHENS, WHITE, RAPP, PETRI AND BEAR, APRIL 20, 2011
REFERRED TO COMMITTEE ON FINANCE, APRIL 20, 2011
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," providing for a natural gas fleet vehicle tax
credit; and imposing penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding an article to
read:
ARTICLE XVII-G
NATURAL GAS FLEET VEHICLE TAX CREDIT
Section 1701-G. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Applicant." A company which meets the eligibility
requirements for the tax credit issued under this article.
"Committee." The Natural Gas Fleet Vehicle Tax Credit
Committee.
"Company." An entity doing business in this Commonwealth
which owns five or more vehicles and which is subject to tax
under Article III, IV or VI. The term includes the shareholder
of a Pennsylvania S corporation that is eligible for the tax
credit provided under this article.
"Conversion plan." A natural gas conversion plan.
"Dedicated compressed natural gas vehicle." A vehicle that
is produced by an original equipment manufacturer or a small
volume manufacturer that operates on 90% or more compressed
natural gas fuel and 10% or less on gasoline or diesel fuel.
"Dedicated liquefied natural gas vehicle." A vehicle that is
produced by an original equipment manufacturer or a small volume
manufacturer that operates on 90% or more liquefied natural gas
fuel and 10% or less on gasoline or diesel fuel.
"Department." The Department of Revenue of the Commonwealth.
"Fleet vehicle." A vehicle registered to a company.
"Incremental cost." The excess cost of a new natural gas
motor vehicle over the price for a gasoline or diesel fuel motor
vehicle of the same model. The term includes the cost to retro-
fit a vehicle to operate on natural gas.
"Natural gas conversion plan." A company's plan to convert
existing fleet vehicles to compressed or liquid natural gas-
fueled vehicles by converting existing vehicles or purchasing
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new natural gas-fueled vehicles.
"Natural gas fleet vehicle tax credit." Tax credits for
which the Department of Revenue has issued a certificate under
this article.
"Secretary." The Secretary of Revenue of the Commonwealth.
"Start date." The date on which the company may begin the
company's conversion plan to natural gas-fueled fleet vehicles
Section 1702-G. Eligibility.
(a) Demonstration.--In order to be eligible to receive a
natural gas fleet vehicle tax credit, a company must demonstrate
to the department the following:
(1) A comprehensive natural gas conversion plan of fleet
vehicles within four years of the start date.
(2) A natural gas conversion plan with financial
viability.
(3) A statement of the projected usage of natural gas
stated in gasoline gallon equivalents accompanied by the
methodology utilized.
(4) The intent to maintain operations in this
Commonwealth for a period of no less than five years from the
start date.
(5) Minimum fuel usage of 900 gasoline gallon
equivalents per day. Fuel usage requirements may be met from
a single applicant or multiple companies under a single
application if:
(i) The companies have an agreement to utilize a
single natural gas fueling facility.
(ii) The companies demonstrate that the utilization
of the single natural gas fueling facility would be at a
minimum level of 900 gasoline gallon equivalents per day
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or have an existing contract with a third party fuel
provider that is willing to construct the station if the
natural gas vehicle tax credit is awarded.
(b) Eligible vehicle and retrofit types.--The following
shall constitute eligible vehicle and retrofit types under this
chapter:
(1) Dedicated compressed natural gas vehicles having a
gross vehicle weight rating of at least 14,000 pounds.
(2) Dedicated liquefied natural gas vehicles having a
gross vehicle weight rating of at least 14,000 pounds.
Section 1703-G. Application process.
(a) Application.--A company must complete and submit to the
department a natural gas fleet vehicle tax credit application.
(b) Natural Gas Fleet Vehicle Tax Credit Committee
establishment and duties.--
(1) The Natural Gas Fleet Vehicle Tax Credit Committee
is established and shall consist of members designated by the
following, except that none of the following may be
designees:
(i) The Secretary of Community and Economic
Development of the Commonwealth.
(ii) The Secretary of Transportation of the
Commonwealth.
(iii) The Secretary of Environmental Protection.
(iv) The secretary.
(v) The chairman of the Marcellus Shale Coalition.
(vi) The Executive Director of Associated Petroleum
Industries of Pennsylvania.
(2) Once applications have been filed with the
department, the committee shall review all applications, rank
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applications according to projected gasoline gallon
equivalents of natural gas and recommend applications to the
department.
(c) Approval.--Once applications are ranked by the committee
under subsection (b)(2), the department shall approve the
applications according to their discretion and availability of
natural gas fleet vehicle tax credits. The department and the
company shall execute a commitment letter containing the
following:
(1) A description of the natural gas conversion plan.
(2) The amount of private capital investment in the
natural gas conversion plan.
(3) A signed statement that the company intends to
complete its conversion plan and remain in this Commonwealth
for five years from the start date.
(4) Any other information as the department deems
appropriate.
(d) Commitment letter.--After a commitment letter has been
signed by the Commonwealth and the company, the company shall
receive a natural gas fleet vehicle tax credit certificate and
filing information.
Section 1704-G. Natural gas fleet vehicle tax credits.
(a) Maximum amount.--A company may claim a natural gas fleet
vehicle tax credit of up to 60% of the incremental cost for
vehicles having a gross vehicle weight rating of at least 14,000
pounds but no more than 26,000 pounds, or 50% of the incremental
cost for vehicles having a gross vehicle weight rating over
26,000 pounds. The incremental cost for vehicles with a gross
vehicle weight rating between 14,000 pounds and 26,000 pounds
shall be capped at $25,000. The incremental cost for vehicles
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with a gross vehicle weight rating of more than 26,000 pounds
shall be capped at $50,000.
(b) Applicable taxes.--A company may apply the natural gas
fleet vehicle tax credit to 100% of all or a combination of any
of the following taxes of the company:
(1) State corporate net income tax.
(2) Capital stock and franchise tax or the capital stock
and franchise tax of a shareholder of the company if the
company is a Pennsylvania S corporation.
(3) Gross premiums tax.
(4) Gross receipts tax.
(5) Bank and trust company shares tax.
(6) Mutual thrift institution tax.
(7) Title insurance company shares tax.
(8) Personal income tax or the personal income tax of
shareholders of a Pennsylvania S corporation.
(c) Term.--A company may claim the natural gas fleet vehicle
tax credit in one year or spread the credit over a period
determined by the department but not to exceed five years from
the date the company first submits a certificate.
(d) Sale or assignment.--
(1) A natural gas fleet vehicle tax credit recipient,
upon application to and approval by the department, may sell
or assign, in whole or in part, a natural gas fleet vehicle
tax credit granted to the recipient if no claim for allowance
of the credit is filed within one year from the date the
credit is granted by the department.
(2) The purchaser or assignee of a natural gas fleet
vehicle tax credit shall immediately claim the credit in the
taxable year in which the purchase or assignment is made. The
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purchaser or assignee may not carry back, obtain a refund of
or sell or assign the natural gas fleet vehicle tax credit.
The purchaser or assignee shall notify the department of the
seller or assignor of the natural gas fleet vehicle tax
credit in compliance with procedures specified by the
department.
(3) The department shall promulgate guidelines for the
approval of applications under this subsection.
(e) Availability.--Each fiscal year, $25,000,000 in natural
gas fleet vehicle tax credits shall be made available to the
department and may be awarded by the department in accordance
with this article.
Section 1705-G. Penalties.
(a) Failure to maintain operations.--A company which
receives natural gas fleet vehicle tax credits and fails to keep
and operate in this Commonwealth 80% of the natural gas vehicles
for which they received the tax credits for a period of five
years from the start date shall refund to the Commonwealth the
total amount of credits granted.
(b) Failure to complete conversion plan.--A company which
receives a natural gas fleet vehicle tax credit and fails to
complete the conversion plan within four years shall refund to
the Commonwealth the total amount of credits granted.
(c) Waiver.--The department may waive the penalties under
subsections (a) and (b) if it is determined that a company's
conversion plan was not completed because of circumstances
beyond the company's control. Circumstances shall include
natural disasters, unforeseen industry trends or a loss of a
major supplier or market. The company must promptly notify the
department of circumstances beyond its control which would delay
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completion of the project.
Section 1706-G. Report to General Assembly
No later than June 1, 2012, and each June 1 thereafter, the
department shall submit a report on the natural gas fleet
vehicle tax credits granted under this article. The report shall
include the names of taxpayers who utilized the credit as of the
date of the report and the amount of credits approved. The
report may include recommendations for changes in the
calculation or administration of the natural gas fleet vehicle
tax credit and other information as the department deems
appropriate. The report shall be submitted to all of the
following:
(1) The chairman and minority chairman of the
Appropriations Committee of the Senate.
(2) The chairman and minority chairman of the
Appropriations Committee of the House of Representatives.
(3) The chairman and minority chairman of the Finance
Committee of the Senate.
(4) The chairman and the minority chairman of the
Finance Committee of the House of Representatives.
Section 1707-G. Time limitations.
A company shall not be entitled to a natural gas fleet
vehicle tax credit for taxable years ending after December 31,
2016.
Section 1708-G. Regulations.
The secretary shall promulgate regulations necessary for the
implementation and administration of this article.
Section 2. This act shall take effect in 60 days.
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