ASSEMBLY, No. 3443

STATE OF NEW JERSEY

214th LEGISLATURE

 

INTRODUCED OCTOBER 25, 2010

 


 

Sponsored by:

Assemblywoman  NANCY F. MUNOZ

District 21 (Essex, Morris, Somerset and Union)

 

 

 

 

SYNOPSIS

     Provides credit under corporation business tax and gross income tax for costs of electric power infrastructure for use by heavy duty vehicles to reduce idling times.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act allowing corporation business tax and gross income tax credits for costs of electrification systems for heavy duty vehicles, and supplementing P.L.1945, c.162 (C.54:10A-1 et seq.) and Title 54A of the New Jersey Statutes

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    a.  A taxpayer shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), in an amount equal to 50% of the cost of purchase and installation of a electrification system for heavy duty vehicles by the taxpayer during the privilege period.  The allowed credit shall not include any portion of the cost of maintenance of the qualifying device.

     b.    The amount of the credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162, for a privilege period, when taken together with any other credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162, shall not exceed 50% of the tax liability otherwise due and shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162.  The priority in which credits allowed pursuant to this section and any other credits shall be taken shall be as determined by the Director of the Division of Taxation.  The amount of the credit otherwise allowable under this section which cannot be applied for the privilege period due to the limitations of this subsection or under other provisions of P.L.1945, c.162 may be carried over, if necessary, to the seven privilege periods following the privilege period for which the credit was allowed.

     c.     As used in this section, "electrification system" means a stand-alone system that supplies heavy duty vehicles with electrical needs for heating, ventilation, and air conditioning without modification of the vehicle.

 

     2.    a.  A taxpayer shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 50% of the cost purchase and installation of a electrification system for heavy duty vehicles by the taxpayer during the privilege period.  The allowed credit shall not include any portion of the cost of maintenance of the electrification system.

     b.    The amount of the credit applied under this section for a taxable year, when taken together with any other credits allowed against the tax imposed pursuant to N.J.S.54A:1-1 et seq., shall not exceed 50% of the liability otherwise due for the taxable year. The priority in which credits allowed pursuant to this section and any other credits shall be taken shall be as determined by the Director of the Division of Taxation.  The amount of the credit otherwise allowable under this section which cannot be applied for the taxable year due to the limitations of this subsection may be carried over, if necessary, to the seven taxable years following the taxable year for which the credit was allowed.

     c.     A partnership shall not be allowed a credit under this section directly, but the amount of credit of a taxpayer in respect of a distributive share of partnership income under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., shall be determined by allocating to the taxpayer that proportion of the credit acquired by the partnership that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the partnership for its taxable year ending within or with the taxpayer's taxable year.  For the purposes of subsection b. of this section, the amount of tax liability that would be otherwise due of a taxpayer is that proportion of the total liability of the taxpayer that the taxpayer's share of the partnership income or gain included in gross income bears to the total gross income of the taxpayer.

     d.    As used in this section, "electrification system" means a stand-alone system that supplies heavy duty vehicles with electrical needs for heating, ventilation, and air conditioning without modification of the vehicle.

 

     3.    This act shall take effect immediately, and sections 1 and 2 shall apply respectively to privilege periods and taxable years beginning after enactment.

 

 

STATEMENT

 

     This bill provides a corporation business tax credit and a gross income tax credit for 50% of the cost of purchase and installation of stand-alone electrification systems for use by heavy duty vehicles.  Stand-alone electrification systems provide power to heavy duty trucks for heating, ventilation, and air conditioning without modification of the vehicle.  The idling of heavy duty diesel vehicles at truck stops contributes to unhealthy particulate emissions as well as emissions of carbon dioxide, carbon monoxide, volatile organic compounds and oxides of nitrogen as well as the waste of thousands of gallons of diesel fuel.  Idling vehicles also contribute to driver fatigue through exposure to noise, vibration, and elevated levels of carbon monoxide and other pollutants.  This bill would encourage the installation of infrastructure to provide the electrification of truck stops to alleviate the need for trucks to idle for long periods of time.