New Jersey-2010-A3651-Amended

An Act providing a corporation business tax ¹[credit] credits¹ and ¹[a]¹ gross income tax ¹[deduction] credits¹ for the purchase of certain ¹electric and plug-in hybrid electric¹ vehicles, and supplementing P.L.1945, c.162 (C.54:10A-1 et seq.) and Title 54A of the ¹[Revised] New Jersey¹ Statutes.

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

1. a. ¹[(1)]¹ For ¹[the first]¹ privilege ¹[period]periods¹ beginning ¹[on or after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill)] in 2012, 2013, and 2014¹, 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 an electric vehicle or plug-in hybrid electric vehicle which is used directly and exclusively by the taxpayer in the taxpayer's business, trade, or occupation.

¹[The] For purchases made in privilege periods beginning in 2012, the¹ credit allowed pursuant to this ¹[paragraph] section¹ shall be in the amount of ¹up to¹ $5,000 for the purchase of an electric vehicle or $3,000 for the purchase of a plug-in hybrid electric vehicle.

¹[(2)]¹ For ¹purchases made in privilege periods beginning in 2013,¹ the ¹[second privilege period beginning on or after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), 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 an electric vehicle or plug-in hybrid electric vehicle which is used directly and exclusively by the taxpayer in the taxpayer's business, trade, or occupation. The]¹ credit allowed pursuant to this ¹[paragraph] section¹ shall be in the amount of ¹up to¹$3,000 for the purchase of an electric vehicle or $1,500 for the purchase of a plug-in hybrid electric vehicle.

¹[(3)]¹ For ¹purchases made in privilege periods beginning in 2014,¹the ¹[third privilege period beginning on or after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), 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 an electric vehicle or plug-in hybrid electric vehicle which is used directly and exclusively by the taxpayer in the taxpayer's business, trade, or occupation. The]¹ credit allowed pursuant to this ¹[paragraph] section¹ shall be in the amount of ¹up to¹$2,000 for the purchase of an electric vehicle or $1,000 for the purchase of a plug-in hybrid electric 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 electric vehicle or plug-in hybrid electric vehicle purchased by the taxpayer qualifies ¹[for the tax credit provided by this section, and is used directly and exclusively by the taxpayer in that taxpayer's business, trade, or occupation] as an electric vehicle or plug-in hybrid electric vehicle¹. The certification shall specifically indicate the date of purchase of the vehicle, a description of the vehicle, ¹[a description of how the vehicle is used in the taxpayer's business, trade, or occupation,]¹ and the amount paid for the vehicle. The commissioner shall prescribe the form for the application and certification ¹and may require the submission of supplemental materials with an application including but not limited to a copy of the receipt of purchase¹.

(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. ¹[No credit shall be allowed pursuant to this section for an electric vehicle or plug-in hybrid electric vehicle purchased after the conclusion of the first three privilege periods following the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill).

d.]¹ 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.

¹[e.]d.¹ As used in this section:

"Electric vehicle" means an on-road motor vehicle that uses a battery to store the electrical energy to power the vehicle's motor, including a battery electric vehicle, and that is charged or recharged from an external source of electricity, such as by plugging the vehicle into an electric power source. An electric vehicle may qualify as a "zero emission vehicle" pursuant to P.L.2003, c.266 (C.26:2C-8.15 et seq.) but shall not include a hybrid electric vehicle.

"Hybrid electric vehicle" means an on-road vehicle powered by conventional or alternative fuels as well as electric power stored in a battery, and the battery is charged through regenerative braking and the internal combustion engine and is not plugged in to charge.

2. a. ¹[(1)]¹ For ¹[the first]¹ privilege ¹[period] periods¹ beginning ¹[on or after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill)] in 2012, 2013, and 2014¹, 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 an electric truck or electric bus which is used directly and exclusively by the taxpayer in the taxpayer's business, trade, or occupation.

¹[The] For purchases made in privilege periods beginning in 2012, the¹ credit allowed pursuant to this ¹[paragraph] section¹ shall be in the amount of up to $20,000 for the purchase of an electric truck or electric bus.

¹[(2)]¹ For ¹purchases made in privilege periods beginning in 2013,¹ the ¹[second privilege period beginning on or after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), 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 an electric truck or electric bus which is used directly and exclusively by the taxpayer in the taxpayer's business, trade, or occupation. The]¹ credit allowed pursuant to this ¹[paragraph] section¹ shall be in the amount of up to $15,000 for the purchase of an electric truck or electric bus.

¹[(3)]¹ For ¹purchases made in privilege periods beginning in 2014,¹ the ¹[third privilege period beginning on or after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), 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 an electric truck or electric bus which is used directly and exclusively by the taxpayer in the taxpayer's business, trade, or occupation. The]¹ credit allowed pursuant to this ¹[paragraph] section¹ shall be in the amount of up to $10,000 for the purchase of an electric truck or electric bus.

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 electric truck or electric bus purchased by the taxpayer qualifies ¹[for the tax credit provided by this section, and is used directly and exclusively by the taxpayer in that taxpayer's business, trade, or occupation] as an electric truck or electric bus¹. The certification shall specifically indicate the date of purchase of the vehicle, a description of the vehicle, ¹[a description of how the vehicle is used in the taxpayer's business, trade, or occupation,]¹ and the amount paid for the vehicle. The commissioner shall prescribe the form for the application and certification ¹and may require the submission of supplemental materials with an application including but not limited to a copy of the receipt of purchase¹.

(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.

c. ¹[No credit shall be allowed pursuant to this section for an electric truck or electric bus purchased after the conclusion of the first three privilege periods following the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill).

¹[e.] d.¹ As used in this section:

"Electric bus" means a bus powered by electricity, or powered by a combination of internal combustion engines and electric propulsion, that is charged or recharged from an external source of electricity, such as by plugging the bus into an electric power source.

"Electric truck" means a truck powered by electricity, or powered by a combination of internal combustion engines and electric propulsion, that is charged or recharged from an external source of electricity, such as by plugging the truck into an electric power source. An electric truck may include a truck with electrically powered accessories, instead of mechanically powered accessories, that rely on electrical power to operate independently of the engine.

3. a. ¹[(1)]¹ For ¹[the first]¹ taxable ¹[year] years¹ beginning ¹[on or after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill)] in 2012, 2013 and 2014¹, a taxpayer shall be allowed ¹[to deduct from gross income an] a credit against the tax imposed pursuant to the "New Jersey Gross Income Tax Act" N.J.S.54A:1-1 et seq., for the¹ amount paid by the taxpayer during ¹[that] the¹ taxable year to purchase an electric vehicle or plug-in hybrid electric vehicle. ¹[A] 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, a¹ taxpayer shall be allowed ¹[to deduct from gross income] a credit of up to¹ $5,000 ¹[towards] for¹ the ¹amount paid to¹ purchase ¹[of one] an¹ electric vehicle or $3,000 ¹[towards] for¹ the ¹amount paid to¹purchase ¹[of one] a¹ plug-in hybrid electric vehicle ¹[in the first taxable year after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill). In the case of individual taxpayers filing a joint return as a married or civil union couple, they shall be allowed to deduct from gross income $5,000 towards the purchase of one electric vehicle, or $3,000 towards the purchase of one plug-in hybrid electric vehicle, per individual in the first taxable year after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill) ]¹.

¹[(2) For the second taxable year beginning on or after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), a taxpayer shall be allowed to deduct from gross income an amount paid by the taxpayer during that taxable year to purchase an electric vehicle or plug-in hybrid electric vehicle. A]

For taxable years beginning in 2013, a¹ taxpayer shall be allowed ¹[to deduct from gross income] a credit of up to¹ $3,000 ¹[towards] for¹ the ¹amount paid to¹purchase ¹[of one] an¹ electric vehicle or $1,500 ¹[towards] for¹ the ¹amount paid to¹purchase ¹[of one] a¹ plug-in hybrid electric vehicle ¹[in the second taxable year after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill). In the case of individual taxpayers filing a joint return as a married or civil union couple, they shall be allowed to deduct from gross income $3,000 towards the purchase of one electric vehicle, or $1,500 towards the purchase of one plug-in hybrid electric vehicle, per individual in the second taxable year after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill)]¹.

¹[(3) For the third taxable year beginning on or after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), a taxpayer shall be allowed to deduct from gross income an amount paid by the taxpayer during that taxable year to purchase an electric vehicle or plug-in hybrid electric vehicle. A]

For taxable years beginning in 2014, a¹ taxpayer shall be allowed ¹[to deduct from gross income] a credit of up to¹ $2,000 ¹[towards] for¹ the ¹amount paid to¹purchase ¹[of one] an¹ electric vehicle or $1,000 ¹[towards] for¹ the ¹amount paid to¹purchase ¹[of one] a¹ plug-in hybrid electric vehicle ¹[in the third taxable year after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill). In the case of individual taxpayers filing a joint return as a married or civil union couple, they shall be allowed to deduct from gross income $2,000 towards the purchase of one electric vehicle, or $1,000 towards the purchase of one plug-in hybrid electric vehicle, per individual in the third taxable year after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill)]¹.

b. ¹[No deduction shall be allowed pursuant to this section for an electric vehicle or plug-in hybrid electric vehicle purchased after the conclusion of the first three taxable years beginning on or after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill).] (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 electric vehicle or plug-in hybrid electric vehicle purchased by the taxpayer qualifies as an electric vehicle or plug-in hybrid electric 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.

c. As used in this section:

¹4. 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 an electric vehicle or plug-in hybrid electric 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 $5,000 for the purchase of an electric vehicle or $3,000 for the purchase of a plug-in hybrid electric 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 $3,000 for the purchase of an electric vehicle or $1,500 for the purchase of a plug-in hybrid electric 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 $2,000 for the purchase of an electric vehicle or $1,000 for the purchase of a plug-in hybrid electric 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 electric vehicle or plug-in hybrid electric vehicle purchased by the taxpayer qualifies as an electric vehicle or plug-in hybrid electric 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 ofEnvironmental 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.

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.

e. As used in this section:

"Plug-in hybrid electric vehicle" means an on-road electric vehicle that is charged or recharged by plugging the vehicle into an electric power source and may also be powered by conventional or alternative fuels in addition to electric power stored in a battery.¹
¹5. 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 privilege period to purchase an electric truck or electric bus 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 $20,000 for the purchase of an electric truck or electric bus.

For purchases made in taxable years beginning in 2013, the credit allowed pursuant to this section shall be in the amount of up to $15,000 for the purchase of an electric truck or electric bus.

For purchases made in taxable years beginning in 2014, the credit allowed pursuant to this section shall be in the amount of up to $10,000 for the purchase of an electric truck or electric bus.

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 electric truck or electric bus purchased by the taxpayer qualifies as an electric truck or electric bus. 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 ofEnvironmental 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. The amount of the credit otherwise allowable under this section which cannot be applied for the taxable year due to the limitations of this section or under other provisions of "New Jersey Gross Income Tax Act" may be carried over, if necessary, to the seven taxable years following the taxable year for which the credit was allowed.

e. As used in this section:

¹[4.] 6.¹ This act shall take effect immediately ¹[and apply to amounts paid in the first three tax years beginning on or after the date of enactment of this act]¹.