SECOND REGULAR SESSION
94TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVES MUNZLINGER (Sponsor) AND SANDER (Co-sponsor).
Read 1st time February 27, 2008 and copies ordered printed.
D. ADAM CRUMBLISS, Chief Clerk
AN ACT
To amend chapters 135 and 143, RSMo, by adding thereto three new sections relating to tax incentives for certain energy uses.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapters 135 and 143, RSMo, are amended by adding thereto three new sections, to be known as sections 135.710, 143.114, and 143.128, to read as follows:
135.710. 1. As used in this section, the following terms mean:
(1) "Alternative fuels", any motor fuel at least seventy percent of the volume of which consists of one or more of the following:
(a) Ethanol;
(b) Natural gas;
(c) Compressed natural gas;
(d) Liquified natural gas;
(e) Liquified petroleum gas;
(f) Any mixture of biodiesel and diesel fuel, without regard to any use of kerosene;
(2) "Department", the department of natural resources;
(3) "Eligible applicant", a business entity that is the owner of a qualified alternative fuel vehicle refueling property;
(4) "Qualified alternative fuel vehicle refueling property", property in this state owned by an eligible applicant and used for storing alternative fuels and for dispensing such alternative fuels into fuel tanks of motor vehicles owned by such eligible applicant or private citizens which, if constructed after August 28, 2008, was constructed with at least fifty-one percent of the costs being paid to qualified Missouri contractors for the:
(a) Fabrication of premanufactured equipment or process piping used in the construction of such facility;
(b) Construction of such facility; and
(c) General maintenance of such facility during the time period in which such facility receives any tax credit under this section.
If no qualified Missouri contractor is located within seventy-five miles of the property, the requirement that fifty-one percent of the costs shall be paid to qualified Missouri contractors shall not apply;
(5) "Qualified Missouri contractor", a contractor whose principal place of business is located in Missouri and has been located in Missouri for a period of not less than five years.
2. For all tax years beginning on or after January 1, 2009, but before January 1, 2012, any eligible applicant who installs and operates a qualified alternative fuel vehicle refueling property shall be allowed a credit against the tax otherwise due under chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, or due under chapter 147, RSMo, or chapter 148, RSMo, for any tax year in which the applicant is constructing the refueling property. The credit allowed in this section per eligible applicant shall not exceed the lesser of twenty thousand dollars or twenty percent of the total costs directly associated with the purchase and installation of any alternative fuel storage and dispensing equipment on any qualified alternative fuel vehicle refueling property, which shall not include the following:
(1) Costs associated with the purchase of land upon which to place a qualified alternative fuel vehicle refueling property;
(2) Costs associated with the purchase of an existing qualified alternative fuel vehicle refueling property; or
(3) Costs for the construction or purchase of any structure.
3. Tax credits allowed by this section shall be claimed by the eligible applicant at the time such applicant files a return for the tax year in which the storage and dispensing facilities were placed in service at a qualified alternative fuel vehicle refueling property, and shall be applied against the income tax liability imposed by chapter 143, RSMo, chapter 147, RSMo, or chapter 148, RSMo, after all other credits provided by law have been applied. The cumulative amount of tax credits which may be claimed by eligible applicants claiming all credits authorized in this section shall not exceed the following amounts:
(1) In taxable year 2009, three million dollars;
(2) In taxable year 2010, two million dollars; and
(3) In taxable year 2011, one million dollars.
4. If the amount of the tax credit exceeds the eligible applicant's tax liability, the difference shall not be refundable. Any amount of credit that an eligible applicant is prohibited by this section from claiming in a taxable year may be carried forward to any of such applicant's two subsequent taxable years. Tax credits allowed under this section may be assigned, transferred, sold, or otherwise conveyed.
5. An alternative fuel vehicle refueling property, for which an eligible applicant receives tax credits under this section, which ceases to sell alternative fuel shall cause the forfeiture of such eligible applicant's tax credits provided under this section for the taxable year in which the alternative fuel vehicle refueling property ceased to sell alternative fuel and for future taxable years with no recapture of tax credits obtained by an eligible applicant with respect to such applicant's tax years which ended before the sale of alternative fuel ceased.
6. The director of revenue shall establish the procedure by which the tax credits in this section may be claimed, and shall establish a procedure by which the cumulative amount of tax credits is apportioned equally among all eligible applicants claiming the credit. To the maximum extent possible, the director of revenue shall establish the procedure described in this subsection in such a manner as to ensure that eligible applicants can claim all the tax credits possible up to the cumulative amount of tax credits available for the taxable year. No eligible applicant claiming a tax credit under this section shall be liable for any interest or penalty for filing a tax return after the date fixed for filing such return as a result of the apportionment procedure under this subsection.
7. Any eligible applicant desiring to claim a tax credit under this section shall submit the appropriate application for such credit with the department. The application for a tax credit under this section shall include any information required by the department. The department shall review the applications and certify to the department of revenue each eligible applicant that qualifies for the tax credit.
8. The department and the department of revenue may promulgate rules to implement the provisions of this section. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2008, shall be invalid and void.
9. Pursuant to section 23.253, RSMo, of the Missouri sunset act:
(1) The provisions of the new program authorized under this section shall automatically sunset six years after the effective date of this section unless reauthorized by an act of the general assembly; and
(2) If such program is reauthorized, the program authorized under this section shall automatically sunset twelve years after the effective date of the reauthorization of this section; and
(3) This section shall terminate on December thirty-first of the calendar year immediately following the calendar year in which the program authorized under this section is sunset.
143.114. 1. As used in this section, the following terms mean:
(1) "Motor vehicle", any self-propelled vehicle not operated exclusively upon tracks, except farm tractors;
(2) "Qualified hybrid motor vehicle", any motor vehicle licensed under chapter 301, RSMo, and:
(a) Which meets the definition of new qualified hybrid motor vehicle in section 30B(d)(3)(A) of the Internal Revenue Code of 1986, as amended;
(b) The original use of which commences with the taxpayer; and
(c) Which is acquired for use by the taxpayer and not for resale.
2. For the tax year beginning on January 1, 2009, any taxpayer who purchases a qualified hybrid vehicle shall be allowed to subtract from the taxpayer's Missouri adjusted gross income to determine Missouri taxable income, for the tax year in which the taxpayer purchases the vehicle, an amount equal to one thousand five hundred dollars or ten percent of the purchase price of the vehicle, whichever is less.
3. The director of revenue shall establish the procedure by which the deduction in this section may be claimed, and shall promulgate rules to provide for the submission of documents by the taxpayer proving the purchase price and date of the qualified hybrid motor vehicle and to implement the provisions of this section.
4. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2008, shall be invalid and void.
143.128. 1. For purposes of this section the term "E-85 gasoline" shall mean ethanol blended gasoline formulated with a minimum percentage of between seventy-five and eighty-five percent by volume of ethanol, "biodiesel" shall mean fuel as defined in ASTM Standard D-6751 or its subsequent standard specifications for biodiesel fuel (B100) blend stock for distillate fuels, and "biodiesel-blended fuel" shall mean a blend of biodiesel and conventional diesel fuel. For all tax years beginning on or after January 1, 2009, a taxpayer who purchases E-85 gasoline, biodiesel, or biodiesel-blended fuel in a tax year shall be allowed to claim a tax credit against the tax otherwise due under this chapter, excluding sections 143.191 to 143.265, in the following amounts:
(1) For calendar year 2009, the amount of the credit shall be equal to twenty-five cents per gallon of E-85 gasoline or equal to five cents per gallon of biodiesel or biodiesel-blended fuel purchased by the taxpayer;
(2) For calendar years 2010 and 2011, the amount of the credit shall be equal to twenty cents per gallon of E-85 gasoline or equal to three cents per gallon of biodiesel or biodiesel-blended fuel purchased by the taxpayer;
(3) For calendar year 2012 and each subsequent calendar year, the amount of the credit shall be equal to fifteen cents per gallon of E-85 gasoline or equal to five cents per gallon of biodiesel or biodiesel-blended fuel purchased by the taxpayer.
2. The amount of credits claimed per taxpayer annually shall not exceed five hundred dollars. The minimum amount of tax credits a taxpayer may claim shall not be less than fifty dollars. A taxpayer shall claim the credit allowed by this section at the time such taxpayer files a return. In the event the amount of the tax credit provided under this section exceeds a taxpayer's income tax liability, no refund shall result, but such excess tax credits may be carried forward to any of the taxpayer's three subsequent tax years. The aggregate amount of tax credits which may be redeemed in any fiscal year shall not exceed five hundred thousand dollars. The tax credit shall be available regardless of whether the taxpayer opts to take a standard deduction. The department of revenue is authorized to adopt any rule or regulations deemed necessary for the effective administration of this section. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and if applicable, section 536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2008, shall be invalid and void.
3. Pursuant to section 23.253, RSMo, of the Missouri sunset act:
(1) The provisions of the new program authorized under this section shall sunset automatically six years after the effective date of this section unless reauthorized by an act of the general assembly; and
(2) If such program is reauthorized, the program authorized under this section shall sunset automatically twelve years after the effective date of the reauthorization of this section; and
(3) This section shall terminate on September first of the calendar year immediately following the calendar year in which the program authorized under this section is sunset.
4. Nothing in this section shall be construed as authorizing, approving, or condoning the violation of a motor vehicle manufacturer's stated warranty with regard to recommended fuel use.
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