ASSEMBLY, No. 3904

STATE OF NEW JERSEY

214th LEGISLATURE

 

INTRODUCED MARCH 7, 2011

 


 

Sponsored by:

Assemblyman  JOHN F. MCKEON

District 27 (Essex)

Assemblyman  CRAIG J. COUGHLIN

District 19 (Middlesex)

Assemblyman  WAYNE P. DEANGELO

District 14 (Mercer and Middlesex)

 

 

 

 

SYNOPSIS

     Provides corporation business tax credits and gross income tax credits for purchase of compressed natural gas vehicles.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act providing corporation business tax credits and gross income tax credits for the purchase of compressed natural gas 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.  For privilege periods beginning in 2012, 2013, and 2014, 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) for the amount paid during the privilege period to purchase a compressed natural gas vehicle which is used directly and exclusively by the taxpayer in the taxpayer’s business, trade, or occupation.

     For purchases made in privilege periods beginning in 2012, the credit allowed pursuant to this section shall be in the amount of up to $3,000 for the purchase of a compressed natural gas vehicle.

     For purchases made in privilege periods beginning in 2013, the credit allowed pursuant to this section shall be in the amount of up to $1,500 for the purchase of a compressed natural gas vehicle.

     For purchases made in privilege periods beginning in 2014, the credit allowed pursuant to this section shall be in the amount of up to $1,000 for the purchase of a compressed natural gas vehicle.

     b.    (1) To qualify for the tax credit allowed pursuant to this section, the taxpayer shall file an application for a certification from the Commissioner of Environmental Protection that the vehicle purchased by the taxpayer qualifies as a compressed natural gas vehicle. The certification shall specifically indicate the date of purchase of the vehicle, a description of the vehicle, and the amount paid for the vehicle.  The commissioner shall prescribe the form for the application and certification and may require the submission of supplemental materials with an application including but not limited to a copy of the receipt of purchase.

     (2)   The Commissioner of Environmental Protection shall have 90 days from the date of receipt of a complete application to make a determination as to the issuance of a certification.

     (3)   Upon certification, the Commissioner of Environmental Protection shall submit a copy thereof to the taxpayer and the director.  In filing a tax return that includes a claim for the credit allowed pursuant to this section, the taxpayer shall include a copy of the certification.

     c.     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.

 

     2.    a.  For taxable years beginning in 2012, 2013 and 2014, a taxpayer shall be allowed a credit against the tax imposed pursuant to the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq., for the amount paid by the taxpayer during the taxable year to purchase a compressed natural gas vehicle. No taxpayer shall be allowed more than one credit pursuant to this section per taxable year, except that a taxpayer filing a joint return shall be allowed no more than two credits pursuant to this section per taxable year.

     For taxable years beginning in 2012, a taxpayer shall be allowed a credit of up to $3,000 for the amount paid to purchase a compressed natural gas vehicle.  

   For taxable years beginning in 2013, a taxpayer shall be allowed a credit of up to $1,500 for the amount paid to purchase a compressed natural gas vehicle.  

     For taxable years beginning in 2014, a taxpayer shall be allowed a credit of up to $1,000 for the amount paid to purchase a compressed natural gas vehicle.  

     b.    (1) To qualify for the tax credit allowed pursuant to this section, the taxpayer shall file an application for a certification from the Commissioner of Environmental Protection that the vehicle purchased by the taxpayer qualifies as a compressed natural gas vehicle.  The certification shall specifically indicate the date of purchase of the vehicle, a description of the vehicle, and the amount paid for the vehicle.  The commissioner shall prescribe the form for the application and certification and may require the submission of supplemental materials with an application including but not limited to a copy of the receipt of purchase.

     (2)   The Commissioner of Environmental Protection shall have 90 days from the date of receipt of a complete application to make a determination as to the issuance of a certification.

     (3)   Upon certification, the Commissioner of Environmental Protection shall submit a copy thereof to the taxpayer and the director.  In filing a tax return that includes a claim for the credit allowed pursuant to this section, the taxpayer shall include a copy of the certification.

 

     3.    a.  For taxable years beginning in 2012, 2013 and 2014, a taxpayer operating a business as a sole proprietor or through a partnership shall be allowed a credit against the tax imposed pursuant to the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq., for the amount paid during the taxable year to purchase a compressed natural gas vehicle which is used directly and exclusively by the taxpayer in the taxpayer’s business, trade, or occupation.

     For purchases made in taxable years beginning in 2012, the credit allowed pursuant to this section shall be in the amount of up to $3,000 for the purchase of a compressed natural gas vehicle.

     For purchases made in taxable years beginning in 2013, the credit allowed pursuant to this section shall be in the amount of up to $1,500 for the purchase of a compressed natural gas vehicle.

     For purchases made in taxable years beginning in 2014, the credit allowed pursuant to this section shall be in the amount of up to $1,000 for the purchase of a compressed natural gas vehicle.

     b.    (1) To qualify for the tax credit allowed pursuant to this section, the taxpayer shall file an application for a certification from the Commissioner of Environmental Protection that the vehicle purchased by the taxpayer qualifies as a compressed natural gas vehicle.  The certification shall specifically indicate the date of purchase of the vehicle, a description of the vehicle, and the amount paid for the vehicle.  The commissioner shall prescribe the form for the application and certification and may require the submission of supplemental materials with an application including but not limited to a copy of the receipt of purchase.

     (2)   The Commissioner of Environmental Protection shall have 90 days from the date of receipt of a complete application to make a determination as to the issuance of a certification.

     (3)   Upon certification, the Commissioner of Environmental Protection shall submit a copy thereof to the taxpayer and the director.  In filing a tax return that includes a claim for the credit allowed pursuant to this section, the taxpayer shall include a copy of the certification.

     c.     The amount of the credit applied under this section against the tax imposed pursuant to the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq., for a taxable year, when taken together with any other credits allowed against the tax imposed pursuant to the “New Jersey Gross Income Tax Act,” shall not exceed 50% of the tax liability otherwise due.  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.

     d.    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 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.

     4.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill would provide corporation business tax credits and gross income tax credits for the purchase of compressed natural gas (CNG) vehicles.  The tax credits are available for purchases made in tax years beginning in 2012, 2013, and 2014. 

     For business entities, the bill provides a credit for the purchase of CNG vehicles.  Each credit is available under the corporation business tax and gross income tax.  To qualify for these credits, the business entity taxpayer must use the vehicle directly and exclusively in the taxpayer’s business, trade, or occupation

     These business credits are allowed for tax years beginning in a three year period and are gradually reduced each year.  For CNG  vehicles purchased in a tax year beginning in 2012 a business taxpayer is allowed a credit of up to $3,000.  For CNG vehicles purchased in a tax year beginning in 2013 a business taxpayer is allowed a credit of up to $1,500.  For CNG  vehicles purchased in a tax year beginning in 2014 a business taxpayer is allowed a credit of up to $1,000.

     For personal income taxpayers, the bill provides a gross income tax credit for the purchase of CNG vehicles.  These personal income taxpayer credits are allowed for tax years beginning in a three year period and are gradually reduced each year.  For CNG vehicles purchased in a tax year beginning in 2012 a personal income taxpayer is allowed a credit of up to $3,000.  For CNG vehicles purchased in a tax year beginning in 2013 a personal income taxpayer is allowed a credit of up to $1,500.  For CNG vehicles purchased in a tax year beginning in 2014 a personal income taxpayer is allowed a credit of up to $1,000.  The bill limits personal income taxpayers to one of these credits per tax year, except joint filers are allowed two credits per tax year.

     To qualify for any of the credits allowed under this bill a taxpayer must file an application for a certification from the Commissioner of Environmental Protection that the vehicle purchased by the taxpayer qualifies as a CNG vehicle.