Bill > S108

Introduced Session

This bill provides corporation business tax credits and gross income tax credits for the purchase of certain compressed natural gas (CNG) vehicles. The tax credits are available for purchases made in tax years beginning in 2023, 2024, and 2025. For business entities, the bill provides a credit for the purchase of CNG passenger automobiles and a credit for the purchase of Class 8 CNG trucks. 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 passenger automobiles purchased in a tax year beginning in 2023 a business taxpayer is allowed a credit of up to $3,500. For CNG passenger automobiles purchased in a tax year beginning in 2024 a business taxpayer is allowed a credit of up to $2,500. For CNG passenger automobiles purchased in a tax year beginning in 2025 a business taxpayer is allowed a credit of up to $1,500. For Class 8 CNG trucks purchased in a tax year beginning in 2023 a business taxpayer is allowed a credit of up to $25,000. For Class 8 CNG trucks purchased in a tax year beginning in 2024 a business taxpayer is allowed a credit of up to $15,000. For Class 8 CNG trucks purchased in a tax year beginning in 2025 a business taxpayer is allowed a credit of up to $7,500. For personal income taxpayers, the bill provides a gross income tax credit for the purchase of CNG passenger automobiles. These personal income taxpayer credits are allowed for tax years beginning in a three year period and are gradually reduced each year. For CNG passenger automobiles purchased in a tax year beginning in 2023 a personal income taxpayer is allowed a credit of up to $3,500. For CNG passenger automobiles purchased in a tax year beginning in 2024 a personal income taxpayer is allowed a credit of up to $2,500. For CNG passenger automobiles purchased in a tax year beginning in 2025 a personal income taxpayer is allowed a credit of up to $1,500. 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 or truck purchased by the taxpayer qualifies as a passenger automobile fueled by CNG or a Class 8 CNG truck.

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Nilsa Cruz-Perez (D)*, 

Introduced in the Senate, Referred to Senate Environment and Energy Committee (on 01/09/2024)

Official Document