Report Title:

Electric Vehicles; Tax Credit

Description:

Provides a tax credit for the purchase of electric vehicles.

HOUSE OF REPRESENTATIVES

H.B. NO.

1573

TWENTY-SECOND LEGISLATURE, 2003

 

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

"§235-___ Tax credits; electric vehicles. (a) Any taxpayer who files an individual or corporate income tax return for a taxable year may claim an electric vehicle income tax credit under this section against the Hawaii state individual or corporate net income tax; provided that the tax credit may be claimed for multiple purchases of electric vehicles.

(b) The tax credit claimed shall be equal to five per cent of the cost of the electric vehicle purchased and shall be claimed in the year the taxpayer purchased the electric vehicle.

(c) For the purposes of this section, "electric vehicle" means a "neighborhood electric vehicle" as defined under section 291C-1, a hybrid vehicle, or any other low emission or emission-free vehicle with four wheels that transports more than two people and is propelled solely by means of electric power.

"Hybrid vehicle" means a motor vehicle that:

(1) Draws propulsion energy from onboard sources of stored energy that involve both;

(A) An internal combustion or heat engine using combustible fuel; and

(B) A rechargeable energy storage system;

(2) In the case of a passenger automobile or light truck;

(A) For 2002 and later model vehicles, has received a certificate of conformity under the Clean Air Act (42 U.S.C. 7401 et seq.) and meets or exceeds the equivalent qualifying low emission vehicle standard under section 243(e)(2) of the Clean Air Act (42 U.S.C. 7583(c)(2)) for that make and model year; and

(B) For 2004 and later model vehicles, has received a certificate that the vehicle meets or exceeds the Bin 5 Tier II emission level established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act (42 U.S.C. 7521(i)) for that make and model year vehicle; and

(3) Is made by a manufacturer.

(d) If the tax credit claimed by the taxpayer under this section exceeds the amount of the income tax payments due from the taxpayer, the excess of credit over payments due shall be refunded to the taxpayer; provided that the tax credit properly claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer; and provided further that no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1.

(e) The director of taxation shall prepare such forms as may be necessary to claim a credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91.

(f) All of the provisions relating to assessments and refunds under this chapter and under section 231-23(c)(1) shall apply to the tax credit under this section.

(g) Claims for the tax credit under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the taxable year for which the credit may be claimed."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval and shall apply to taxable years beginning after December 31, 2002.

INTRODUCED BY:

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