COMMITTEE AMENDMENT NO 1 PROPOSED TO
House Bill No. 879
Amend by striking all after the enacting clause and inserting in lieu thereof the following:
SECTION 1. (1) Pollution control equipment installed after July 1, 2007, by manufacturers or custom processors for industrial use shall be exempt from ad valorem taxation, except ad valorem taxes for school district purposes, for a period of ten (10) years from the date of installation of the equipment.
(2) As used in this section, "pollution control equipment" means equipment, devices, machinery or systems that are used exclusively and directly to prevent, control, monitor or reduce air, water or groundwater pollution, or solid or hazardous waste as required by federal or state law or regulation.
SECTION 2. (1) For the purposes of this section, the term "hybrid electric vehicle" means a private carrier of passengers or light carrier of property, as defined in Section 27-51-101, that:
(a) Meets all applicable federal and state regulatory requirements;
(b) Meets the current vehicle exhaust standard set under the National Low-Emission Vehicle Program for gasoline powered passenger cars; and
(c) Draws propulsion energy from the following sources:
(i) An internal combustion engine or heat engine using any combustible fuel; and
(ii) An onboard rechargeable energy storage system.
(2) Subject to the provisions of this section, any taxpayer who purchases a new hybrid electric vehicle without the intent to resell the vehicle and who does not resell the vehicle within five (5) years from the date of purchase shall be entitled to a credit against the taxes imposed by this chapter in an amount equal to the amount established by federal law or the amount of income tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits allowable to the taxpayer under the state income tax laws, except credit for tax payments made by or on behalf of the taxpayer. In the case of married individuals filing separate returns, each person may claim an amount not to exceed one-half (1/2) of the tax credit that would have been allowed for a joint return. The tax credit is available only for the taxable year during which the hybrid electric vehicle was purchased, and a hybrid electric vehicle may qualify for the credit only one (1) time. To the extent that the allowable tax credit exceeds the amount of the taxpayer's liability for the taxable year, the unused portion of the tax credit may be carried forward for the next five (5) succeeding tax years until the full amount of the tax credit has been used.
(3) No person who receives a credit under the provisions of this section shall alter the vehicle for which a credit is received in any manner that changes the vehicle to such a condition that the vehicle is no longer a hybrid-electric vehicle.
SECTION 3. Section 2 of this act shall be codified as a separate section in Chapter 7, Title 27, Mississippi Code of 1972.
SECTION 4. This act shall take effect and be in force from and after July 1, 2007.
Further, amend by striking the title in its entirety and inserting in lieu thereof the following:
AN ACT TO PROVIDE THAT CERTAIN POLLUTION CONTROL EQUIPMENT MANDATED BY FEDERAL OR STATE LAW OR REGULATION SHALL BE EXEMPT FROM AD VALOREM TAXATION EXCEPT AD VALOREM TAXATION FOR SCHOOL DISTRICT PURPOSES, FOR A PERIOD OF TEN YEARS FROM THE DATE OF INSTALLATION OF THE EQUIPMENT; TO PROVIDE AN INCOME TAX CREDIT FOR CERTAIN TAXPAYERS WHO PURCHASE NEW HYBRID ELECTRIC VEHICLES; TO LIMIT THE AMOUNT OF THE TAX CREDIT TO FEDERAL LIMITS OR THE AMOUNT OF INCOME TAX IMPOSED UPON THE TAXPAYER FOR THE TAXABLE YEAR REDUCED BY THE SUM OF ALL OTHER CREDITS ALLOWABLE TO THE TAXPAYER UNDER THE STATE INCOME TAX LAWS; TO PROVIDE THAT ANY UNUSED PORTION OF THE TAX CREDIT MAY BE CARRIED FORWARD FOR THE NEXT FIVE SUCCEEDING TAX YEARS; AND FOR RELATED PURPOSES.