Phil Mendelson
Councilmember Jack Evans
Councilmember Adrian Fenty
Councilmember David Catania
Chairman Linda Cropp
Councilmember Kevin Chavous
Councilmember Carol Schwartz
Councilmember Jim Graham
Councilmember Sharon Ambrose
Councilmember Sandy Allen
Chavous, Jack Evans, Adrian Fenty and Chairman Linda Cropp introduced the
following bill, which was referred to the Committee on Public Works and
the Environment.
in the District of Columbia by providing for a limited time tax credits
for the purchase of alternative fuel vehicles and for the construction of
related fueling infrastructure.
COLUMBIA,
Fuel Vehicle Act of 2001 ".
hydrogen, natural gas, or propane.
(A) Any motor vehicle that operates solely on an
alternative fuel and is not capable of also operating on gasoline or
diesel fuel;(B) The original use of which commences with the taxpayer and is
acquired by the taxpayer for use or to lease, but not for resale; and(C) Which is registered for operation on the highways of the
District.
(3) "Alternative fueling facility" means a facility built or
expanded by the taxpayer not for resale, the original use of which
commences with the taxpayer, and which meets the following requirements:
(A) It is used to dispense an alternative fuel or fuels into
alternative fuel vehicles. If the facility charges electric vehicles,
its primary use shall be to dispense alternative fuels into
alternative fuel vehicles.(B) It is located in the District of Columbia; and
(C) It is used by a business and is treated as business property
for purposes of depreciation.
(4) "Incremental Cost" means the difference between the
manufacturer’s suggested retail price for an alternative fuel vehicle
and the manufacturer’s suggested retail price for a gasoline or diesel
fuel motor vehicle of the same model. If the same model is not available
as gasoline or diesel powered, then the Mayor shall, by rule, identify a
similar vehicle that uses gasoline or diesel fuel for calculating the
incremental cost, taking into account the model, make, engine size, and
options.
(5) "Motor vehicle" means any self-propelled vehicle
required to be registered pursuant to Title 40 of the District of
Columbia Code for operation upon the highways of the District of
Columbia.
Sec. 3. Tax credit for purchase of alternative fuel vehicles.
(a) With respect to tax years commencing on or after January 1, 2002,
but prior to January 1, 2006, there shall be allowed to any person a tax
credit for each alternative fuel vehicle purchased by such person.
(b)(1) The amount of the credit allowed pursuant to subsection (a)
shall be equal 5 to 50% of the incremental cost and shall be applied
against either the person’s personal 6 income or franchise tax imposed
by Title 47 of the District of Columbia Code.
(2) A motor vehicle that has been certified to the most stringent
available emission standard other than zero emission, or has been
certified to zero emissions, shall qualify for an additional credit of
25% of the vehicle’s incremental cost. For purposes of this paragraph
the Mayor shall adopt by rule the emission standards of either the
federal Environmental Protection Agency or the State of California.
(c) No more than one tax credit shall be granted pursuant to
subsection (b) for any individual motor vehicle.
Sec. 4. Tax Credit for Construction of Fueling Facilities
(a) There shall be allowed to any person a tax credit for the
construction or expansion of an alternative fueling facility. The credit
shall be an amount equal to a percentage of the actual cost incurred by
the person during the tax year for constructing, reconstructing, or
expanding an alternative fueling facility that is directly attributable
to the storage, compression, charging capability, or dispensing of
alternative fuels to motor vehicles.
(b) A person may claim the following percentage of costs as a credit:
(1) Forty percent of the costs incurred on or after January 1,
2002, but prior to January 1, 2005; or(2) Thirty percent of the costs incurred on or after January 1,
2005, but prior to January 1, 2007.
(c) For an alternative fueling facility that is generally accessible
for use by the general public, the percentages in subsection (c) shall
be increased by 10 percentage points.
(d) In no event shall any person claim a credit for all or any
portion of the cost of construction, reconstruction, or acquiring an
alternative fuel refueling facility, or any equipment used in connection
with such facility, for which the person or any other person has
previously claimed a credit pursuant to this act.
(e) The credits allowed by this section for any tax year shall not
exceed the taxpayer’s actual tax liability for such taxable year. If the
amount of a credit allowed by this section exceeds the taxpayer’s actual
tax liability for any tax year in which the credit is claimed, such
excess shall be an investment tax credit carryover to each of the five
tax years following the unused credit year and shall be applied first to
the earliest income tax years possible.
Sec. 5. Limitation on Yearly Tax Credits.
(a) The tax credits provided pursuant to sections 3 and 4 of this act
are limited in the aggregate amount of $3.0 million per year, of which
no more than $2 million shall be applied to fleet vehicles, $500,000
shall be applied to personal vehicles, and $500,000 to alternative
fueling properties.
(b) The tax credits shall be provided on a first come basis, subject
to section (a).
(c) The Mayor shall provide taxpayers with a letter or other formal
indication that they qualify for a tax credit pursuant to this act.
Sec. 6. Miscellaneous.
(a) The basis of the property for which a credit is allowed pursuant
to this act shall be reduced by the amount of such credit taken.
(b) The Mayor shall, by rule, provide for the recapturing of any
credit with respect to any alternative fueling facility which ceases to
be used for such purposes within 5 years of the year the credit is first
taken.
(c) The Mayor shall promulgate rules for the implementation of this
act.
Sec. 7. Fiscal impact statement.
The Council adopts the fiscal impact statement in the committee
report as the fiscal impact statement required by section 602(c)(3) of
the District of Columbia Home Rule Act, approved December 24, 1973 (87
Stat. 813; D.C. Code § 1-233(c)(3)).
Sec. 8. This act shall take effect following approval by the Mayor
(or in the event of veto by the Mayor, action by the Council to override
the veto), approval by the Financial Responsibility and Management
Assistance Authority as provided in section 203(a) of the District of
Columbia Financial Responsibility and Management Assistance Act of 1995,
approved April 17, 1995 (109 Stat. 116; D.C. Code §47-392.3(a)),, a
30-day period of Congressional review as provided in section 602(c)(1)
of the District of Columbia Home Rule Act, approved December 24, 1973
(87 Stat. 813; D.C. Code §1-233(c)(1)), and publication in the District
of Columbia Register.