Support the new Hybrid Bill – OK

I would like to bring to your attention recently introduced legislation for the 2008 legislative session by Oklahoma Senator Jonathan Nichols (R-Norman) that provides a tax credit for alternative vehicles that meet strict air pollution requirements. The text of SB 2043 is below. I urge anyone who supports this bill to contact their local Oklahoma state senator and representative urging that the bill be enacted.

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STATE OF OKLAHOMA

 

2nd Session of the 51st Legislature (2008)

 

SENATE BILL 2043                   By: Nichols 

 

AS INTRODUCED 

 

An Act relating to revenue and taxation; providing for income tax credit for investment in alternative motor vehicle subject to certain requirements; defining terms; clarifying eligibility for claiming credit under specified conditions; establishing basis for credit and amount thereof; allowing credit to be carried forward; requiring Oklahoma Tax Commission to promulgate rules and establish certain procedures; providing for codification; repealing 68 O.S. 2001, Section 2357.22, as amended by Section 1, Chapter 186, O.S.L. 2003 (68 O.S. Supp. 2007, Section 2357.22), which relates to income tax credits for investment in certain property; and providing an effective date. 

 

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

 

SECTION 1.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 2357.105 of Title 68, unless there is created a duplication in numbering, reads as follows:

 

A.  For tax years beginning on or after January 1, 2009, there shall be allowed a credit against the tax imposed by Section 2355 of Title 68 of the Oklahoma Statutes for investment in an alternative motor vehicle if:

 

1.  The original use of the vehicle began with the taxpayer;

 

2.  The vehicle is a model year 2008 or later or was placed into service after December 31, 2007;

 

3.  The vehicle was acquired for personal use or to lease to others and not for resale; and

 

4.  The vehicle is used primarily in the United States.

 

B.  As used in this section, “alternative motor vehicle” means a new vehicle that:

 

1.  Qualifies or originally qualified for a federal tax credit as an advanced lean burn technology vehicle, qualified hybrid vehicle, qualified alternative fuel vehicle or qualified fuel cell vehicle as provided in 26 U.S.C., Section 30B; and

 

2.  Has been certified by the California Air Resources Board or its successor agency as having one of the following vehicle emission ratings:

 

a.   Ultra Low Emission Vehicle (ULEV),

 

b.   Super Ultra Low Emission Vehicle (SULEV),

 

c.   Partial Zero Emission Vehicle (PZEV),

 

d.   Advanced Technology Partial Zero Emission Vehicle (AT PZEV), and

 

e.   Zero Emission Vehicle (ZEV).

 

C.  Any vehicle which meets the requirements of subsections A and B of this section shall qualify for the credit provided in this section regardless of whether or not the federal credit is claimed by the taxpayer or the federal credit for a specific vehicle has become subject to phaseout due to the volume of vehicle sales.

 

D.  The credit provided for in subsection A of this section may only be claimed one time for any alternative motor vehicle.

 

E.  The credit provided for in subsection A of this section shall be based upon the vehicle’s California Air Resources Board vehicle emission rating as follows:

 

1.  Two Thousand Dollars ($2,000.00) for any qualified vehicle certified as a Partial Zero Emission Vehicle (PZEV); Advanced Technology Partial Zero Emission Vehicle (AT PZEV); or Zero Emission Vehicle (ZEV);

 

2.  One Thousand Dollars ($1,000.00) for any qualified vehicle certified as a Super Ultra Low Emission Vehicle (SULEV); and

 

3.  Five Hundred Dollars ($500.00) for any qualified vehicle certified as a Ultra Low Emission Vehicle (ULEV).

 

F.  If the credit allowed pursuant to this section exceeds the amount of income taxes due or if there are no state income taxes due on the income of the taxpayer, the amount of credit allowed but not used in any taxable year may be carried forward as a credit against subsequent income tax liability for a period not exceeding four (4) years following the qualified investment.

 

G.  The Oklahoma Tax Commission shall promulgate rules and establish such procedures as may be necessary to implement this act.

 

SECTION 2.     REPEALER     68 O.S. 2001, Section 2357.22, as amended by Section 1, Chapter 186, O.S.L. 2003 (68 O.S. Supp. 2007, Section 2357.22), is hereby repealed.

 

SECTION 3.  This act shall become effective January 1, 2009.