HF 2888

as introduced - 88th Legislature (2013 - 2014) Posted on 03/10/2014 01:10pm

A bill for an act
relating to taxation; individual income and corporate franchise; providing a
credit for natural gas vehicles and home fueling systems; appropriating money;
proposing coding for new law in Minnesota Statutes, chapter 290.

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

Section 1.

new text begin [290.0693] NATURAL GAS VEHICLE AND FUELING SYSTEM
CREDIT.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given.
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new text begin (b) "Home fueling system" means a system intended for use in the taxpayer's
residence or place of business for the purpose of fueling natural gas vehicles.
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new text begin (c) "Incremental cost" means the difference between the cost of a natural gas vehicle
and the cost of the same or similar motor vehicle, manufactured to operate exclusively
on gasoline or diesel fuel.
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new text begin (d) "Natural gas vehicle" means a motor vehicle capable of using compressed
natural gas or liquefied natural gas as a motor fuel, including but not limited to a flexible
fuel vehicle.
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new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) A taxpayer who purchases a natural gas vehicle,
converts a conventional vehicle to use natural gas, or installs a home fueling system
during the taxable year is eligible for a credit against the tax due under this chapter. The
maximum credit is $8,000. The following expenses are eligible for the credit:
new text end

new text begin (1) the incremental cost of a natural gas vehicle purchased by the taxpayer;
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new text begin (2) the amount paid by the taxpayer to convert a conventional vehicle to a natural
gas vehicle; and
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new text begin (3) the cost of a home fueling system, including installation costs.
new text end

new text begin (b) Credits granted to a partnership, a limited liability company taxed as a
partnership, S corporation, or multiple owners of property are passed through to the
partners, members, shareholders, or owners, respectively, pro rata to each partner, member,
shareholder, or owner based on the respective share of the entity's assets or as specially
allocated in the organizational documents or any other executed agreement, as of the last
day of the taxable year.
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new text begin (c) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
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new text begin Subd. 3. new text end

new text begin Credit refundable; appropriation. new text end

new text begin (a) If the credit allowed under this
section exceeds the individual's liability under this chapter, the commissioner shall refund
the excess to the taxpayer.
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new text begin (b) An amount sufficient to pay the refunds required by this section is appropriated
from the general fund to the commissioner.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2013.
new text end