Senate Bill S1120

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1120

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            January 26, 2009
                               ___________

Introduced  by  Sen.  MARCELLINO  -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Investigations  and
  Government Operations

AN ACT to amend the tax law, in relation to the alternative fuels credit

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subsection (p) of section 606 of the tax law, as amended by
section 16 of part W1 of chapter 109 of the laws of 2006, is amended  to
read as follows:
  (p) Alternative fuels credit. (1) General. A taxpayer shall be allowed
a  credit,  to  be  computed  as  hereinafter  provided, against the tax
imposed by this article, for QUALIFIED HYBRID VEHICLES  AND  alternative
fuel  vehicle  refueling  property  placed in service during the taxable
year.
  (2) Alternative fuel vehicle refueling property. The credit under this
subsection for clean-fuel vehicle refueling property shall  equal  fifty
percent of the cost of any such property
  (A) which is located in this state and
  (B) for which a credit is allowed under section thirty C of the inter-
nal  revenue  code [but not including alternative fuel vehicle refueling
property relating to a qualified  hybrid  vehicle  as  such  vehicle  is
defined in subparagraph (B) of paragraph three of this subsection].
  (3)  QUALIFIED  HYBRID VEHICLE.   THE CREDIT UNDER THIS SUBSECTION FOR
QUALIFIED HYBRID VEHICLES SHALL BE DETERMINED AS FOLLOWS  BASED  ON  THE
BASELINE  FUEL  ECONOMY  (COMBINED  CITY  AND HIGHWAY FUEL ECONOMY LABEL
VALUE) FOR THE TWO THOUSAND FOUR MODEL YEAR BY VEHICLE TYPE AND SIZE FOR
SUCH HYBRID VEHICLE, AS DETERMINED PURSUANT TO THE DESCRIPTION SET FORTH
IN APPENDICES A AND F OF THE "LIGHT-DUTY  AUTOMOTIVE TECHNOLOGY AND FUEL
ECONOMY TRENDS: 1975 THROUGH  2004" (EPA420-R-04-001, APRIL 2004) BY THE
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01565-02-9

              

S. 1120                             2

  (A) FIVE HUNDRED DOLLARS IF THE BASELINE FUEL ECONOMY OF SUCH   HYBRID
VEHICLE  IS TEN PERCENT OR MORE BUT LESS THAN TWENTY PERCENT HIGHER THAN
SUCH CLASS,
  (B)  ONE  THOUSAND DOLLARS IF THE BASELINE FUEL ECONOMY OF SUCH HYBRID
VEHICLE IS TWENTY PERCENT OR MORE BUT LESS  THAN  FORTY  PERCENT  HIGHER
THAN SUCH VEHICLE TYPE,
  (C) ONE THOUSAND FIVE HUNDRED DOLLARS IF THE BASELINE FUEL  ECONOMY OF
SUCH HYBRID VEHICLE IS FORTY PERCENT OR MORE BUT LESS THAN SIXTY PERCENT
HIGHER THAN SUCH VEHICLE TYPE,
  (D)  TWO  THOUSAND DOLLARS IF THE BASELINE FUEL ECONOMY OF SUCH HYBRID
VEHICLE IS SIXTY PERCENT OR MORE BUT LESS THAN EIGHTY  PERCENT    HIGHER
THAN SUCH VEHICLE TYPE, AND
  (E)  TWO THOUSAND FIVE HUNDRED DOLLARS IF THE BASELINE FUEL ECONOMY OF
SUCH HYBRID VEHICLE IS EIGHTY PERCENT OR MORE THAN SUCH  VEHICLE TYPE.
  FOR ALL CARS AND LIGHT TRUCKS, THE CREDIT SHALL BE BASED ON THE  VEHI-
CLE TYPE AND SIZE, AS DETERMINED PURSUANT TO THE VEHICLE  CLASSIFICATION
DESCRIPTION  SET FORTH IN APPENDIX A OF THE "LIGHT-DUTY AUTOMOTIVE TECH-
NOLOGY AND FUEL ECONOMY TRENDS: 1975 THROUGH    2004"  (EPA420-R-04-001,
APRIL 2004) BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY.  BASE-
LINE  FUEL  ECONOMY FOR EACH   VEHICLE TYPE AND SIZE SHALL BE BASED UPON
TWO THOUSAND SIX MODEL  YEAR VEHICLES IN APPENDIX F OF SUCH REPORT.  THE
BASELINE  FUEL  ECONOMY VALUES SHALL BE THE ADJUSTED UNITED STATES ENVI-
RONMENTAL  PROTECTION AGENCY FUEL ECONOMY LABEL VALUES FOR COMBINED CITY
AND  HIGHWAY DRIVING, NOT THE UNADJUSTED VALUES USED FOR CORPORATE AVER-
AGE FUEL ECONOMY PURPOSES. THE BASELINE FUEL  ECONOMY  VALUES  FOR  EACH
VEHICLE TYPE AND SIZE ARE LISTED AS FOLLOWS:
  VEHICLE TYPE BASELINE FUEL
  AND SIZE ECONOMY VALUE
  SMALL CAR 25.9
  MID-SIZE CAR 24.3
  LARGE CAR 22.2
  SMALL WAGON 26.2
  MID-SIZE WAGON 22.9
  LARGE WAGON 18.9
  MID-SIZE VAN 20.4
  LARGE VAN 16.2
  SMALL SUV 21.8
  MID-SIZE SUV 19.2
  LARGE SUV 16.3
  SMALL PICKUP 19.5
  MID-SIZE PICKUP 19.0
  LARGE PICKUP 16.5
  FOR  PURPOSES  OF  THIS  PARAGRAPH, CAR SHALL HAVE THE SAME MEANING AS
PASSENGER AUTOMOBILE AS DEFINED IN TITLE 49, SUBTITLE VI, PART C,  CHAP-
TER  329,  SECTION  32901, PARAGRAPH (A), SUBPARAGRAPH 16 OF THE  UNITED
STATES CODE, AND LIGHT TRUCK SHALL HAVE THE SAME MEANING AS LIGHT  TRUCK
AS  DEFINED IN PARAGRAPH (A) OF SECTION 523.5 OF PART 523 OF TITLE 49 OF
THE CODE OF FEDERAL REGULATIONS.
  THE COMMISSIONER IS HEREBY AUTHORIZED TO REQUEST, AS NEEDED,  A  WRIT-
TEN REPORT FROM THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION  DETAILING:
(I)  WHICH  MOTOR  VEHICLES  (IDENTIFIED BY SIZE, TYPE,   CONFIGURATION,
MAKE, MODEL AND MODEL YEAR) MEET THE REQUIREMENTS  OF A QUALIFIED HYBRID
VEHICLE AS DEFINED  IN  SUBPARAGRAPH  (B)  OF  PARAGRAPH  FOUR  OF  THIS
SUBSECTION;  AND (II) FOR EACH MODEL OF MOTOR VEHICLE THAT SO QUALIFIES,
THE AMOUNT OF THE CREDIT ALLOWED FOR  SUCH    QUALIFIED  HYBRID  VEHICLE
UNDER  THIS  PARAGRAPH  IDENTIFIED BY SIZE, TYPE,   CONFIGURATION, MAKE,

S. 1120                             3

MODEL AND MODEL YEAR. SUCH REPORT SHALL  INCLUDE DOCUMENTATION  SUBSTAN-
TIATING  THE  DETERMINATIONS  MADE  IN    SUCH  REPORT, WHICH REPORT THE
DEPARTMENT OF ENVIRONMENTAL CONSERVATION SHALL PROVIDE  TO  THE  COMMIS-
SIONER,  AFTER CONSULTATION  WITH THE NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY,  NO LATER THAN THIRTY DAYS  AFTER  RECEIVING  THE
COMMISSIONER'S REQUEST.
  (4)  Definitions.    (A)  The term "alternative fuel vehicle refueling
property" means any such property which is qualified within the  meaning
of  section  thirty C of the internal revenue code[, but such term shall
not include alternative fuel vehicle refueling property  relating  to  a
qualified  hybrid vehicle as such vehicle is defined in subparagraph (B)
of this paragraph].
  (B) The term "qualified hybrid vehicle" means  a  motor  vehicle[,  as
defined  in  section  one hundred twenty-five of the vehicle and traffic
law,,] that:
  (i) draws propulsion energy from ONBOARD  SOURCES  OF  STORED  ENERGY,
WHICH ARE both:
  (a)  an internal combustion [engine (]or heat engine [that uses] USING
combustible fuel[)]; and
  (b) [an] A RECHARGEABLE energy storage [device] SYSTEM; and
  (ii) employs a regenerative vehicle braking system that recovers waste
energy to charge such energy storage device[.]; AND
  (III) IS CERTIFIED BY THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION  TO
MEET THE ABOVE CRITERIA.
  [(4)]  (5)  Carryovers.   If the amount of credit allowable under this
subsection shall exceed the taxpayer's tax for such year, the excess may
be carried over to the following year or years and may be deducted  from
the taxpayer's tax for such year or years.
  [(5)] (6) Credit recapture. (A) Vehicles.
  (i) If, within three full years from the date a qualified hybrid vehi-
cle or a vehicle of which alternative fuel vehicle property is a part is
placed  in  service,  such  qualified hybrid vehicle or vehicle of which
alternative fuel vehicle property is a part ceases to  be  qualified,  a
recapture amount must be added back in the tax year in which such cessa-
tion occurs.
  (ii)  Cessation  of  qualification.  [(I)]  A qualified hybrid vehicle
ceases to be qualified if
  (a) it is modified by the taxpayer so that  it  no  longer  meets  the
requirements  of  a  qualified hybrid vehicle as defined in subparagraph
(B) of paragraph [three] FOUR of this subsection.
  (b) the taxpayer receiving the credit under this subsection  sells  or
disposes of the vehicle and knows or has reason to know that the vehicle
will be so modified.
  (B)  Alternative  fuel vehicle refueling property. (i) If, at any time
before the end of its recovery period, alternative fuel vehicle  refuel-
ing  property  ceases  to be qualified, a recapture amount must be added
back in the year in which such cessation occurs.
  (ii) Cessation of qualification. Clean-fuel vehicle refueling property
ceases to be qualified if
  (I) the property no longer qualifies as property described in  section
thirty C of the internal revenue code, or
  (II)  fifty  percent  or  more of the use of the property in a taxable
year is other than in a trade or business in this state, or
  (III) the taxpayer receiving the credit under this subsection sells or
disposes of the property and knows or has reason to know that the  prop-

S. 1120                             4

erty  will  be  used  in  a manner described in item (I) or (II) of this
clause.
  (iii)  Recapture  amount.  The recapture amount is equal to the credit
allowable under this subsection multiplied by a fraction, the  numerator
of  which is the total recovery period for the property minus the number
of recovery years prior to, but not including, the recapture  year,  and
the denominator of which is the total recovery period.
  [(6)]  (7)  Termination.   The credit allowed by paragraph two of this
subsection shall not apply in taxable  years  beginning  after  December
thirty-first, two thousand ten.
  S  2.  This  act  shall take effect January 1, 2010, provided that the
commissioner of taxation and finance shall be authorized  on  and  after
the  date  this act shall have become a law to adopt and amend any rules
or regulations and issue any procedures, forms or instructions necessary
to implement the provisions of this act on its effective date.