HF 3562

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; providing an income tax credit for the conversion of vehicles
to operate using alternative fuels; amending Minnesota Statutes 2004, section
290.06, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2004, section 290.06, is amended by adding a
subdivision to read:

new text begin Subd. 33. new text end

new text begin Alternative fuel vehicle conversion credit. new text end

new text begin A taxpayer who conducts a
trade or business, as defined in section 290.015, subdivision 1, may take a credit against
the tax due under this chapter for an amount equal to 50 percent of the expenses incurred
during the taxable year by the taxpayer in converting one or more of the vehicles used
in the taxpayer's trade or business to an alternative fuel vehicle, as defined in section
216C.01, subdivision 1. The credit must not exceed $500 for a vehicle weighing less than
10,000 pounds and $1,000 for a vehicle weighing more than 10,000 pounds.
new text end

new text begin The credit is limited to the liability for tax, as computed under this section for the
taxable year. If the amount of the credit determined under this section for any taxable
year exceeds this limitation, the excess is an alternative fuel vehicle credit carryover
to the succeeding taxable year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for expenses incurred after June
30, 2006.
new text end