CLEAN-BURNING VEHICLE FUEL TAX CREDIT
- Legislative URL:
- HB 319 on nmlegis.gov
- Emergency Clause:
-  HEENC/HWMC-HEENC  DP-HWMC
- Wednesday, February 17, 2016 - 8:30 am - Room 309
- Bill Sponsor:
- David Gallegos
- HOUSE WAYS AND MEANS COMMITTEE 8:30 am
This bill creates a Clean-Burning Motor Vehicle Fuel Equipment Income Tax Credit against personal and corporate income taxes. The credit is available to a taxpayer who purchases and installs a qualified clean-burning motor vehicle fuel equipment device, within one mile of an interstate highway, between 2018 and 2023.
A “clean-burning motor vehicle fuel equipment device” is a fueling device used directly to deliver clean-burning motor vehicle fuel for commercial purposes or for a fee into the fuel tanks of motor vehicles
propelled by that fuel. It includes compression equipment and storage tanks, but does not include buildings and related structural components. A “clean-burning motor vehicle fuel” is a compressed, liquefied or renewable natural gas fuel that emits oxides of nitrogen, volatile organic compounds, carbon monoxide, particulates or any combination of these at a level lower than gasoline or diesel and that meets or exceeds federal clean air standards.
The amount of the credit is 50 percent of the cost of the purchase and installation if installation is completed in 2018, with the percentage decreasing by five percent each year to 25 percent if the installation is completed in 2023, with a maximum credit per device of $500,000. The Energy, Minerals and Natural Resources Department may issue certificates of eligibility for the credit up to an annual limit of $5 million.
A potential benefit of this bill might be an increase in the number of natural gas fueled vehicles in New Mexico and a decrease in conventional gasoline and diesel powered vehicles and the corresponding higher levels of emissions.