2021 Regular Session
To: Finance; Accountability, Efficiency, Transparency
By: Senator(s) Harkins, Kirby
AN ACT TO AUTHORIZE A TAX CREDIT FOR TAXPAYERS WHO PLACE A QUALIFIED ALTERNATIVE-FUEL FUELING STATION IN SERVICE DURING CALENDAR YEAR 2021 OR 2022; TO DEFINE TERMS; TO ALLOW THE CREDIT TO BE APPLIED AGAINST INCOME TAXES, PREMIUM AND RELATED RETALIATORY TAXES, OR FRANCHISE TAXES; TO PROVIDE THAT THE CREDIT SHALL BE EQUAL TO 75% OF THE COST OF ANY QUALIFIED ALTERNATIVE-FUEL FUELING STATION PLACED IN SERVICE DURING CALENDAR YEAR 2021 OR 2022; TO PROVIDE THAT TAXPAYERS SHALL SUBMIT APPLICATIONS FOR THE CREDIT TO THE DEPARTMENT OF REVENUE; TO IMPOSE AN AGGREGATE CAP FOR THE CREDITS OF $12.5 MILLION ANNUALLY, FOR A CUMULATIVE CAP OF $25 MILLION OVER THE TWO-YEAR PERIOD IN WHICH APPLICATIONS FOR THE CREDIT MAY BE MADE; TO PROVIDE THAT THE CREDITS SHALL BE NONREFUNDABLE AND NONTRANSFERABLE; TO ALLOW UNUSED CREDITS TO BE CARRIED FORWARD FOR UP TO FIVE YEARS; TO REQUIRE ANY TAXPAYER CLAIMING THIS CREDIT TO SUBMIT AN ANNUAL REPORT TO THE DEPARTMENT OF ENVIRONMENTAL QUALITY; TO ALLOW THE DEPARTMENT OF REVENUE TO ADOPT AND PROMULGATE RULES AND REGULATIONS TO IMPLEMENT THE CREDIT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Sections 1 through 5 of this act shall be known and may be cited as the "Fueling Station Tax Credit Act."
SECTION 2. For the purposes of this act, the following words and phrases have the following meanings unless the context clearly requires otherwise:
(a) "Motor vehicle" has the meaning ascribed to it in Section 63-3-103.
(b) "Qualified alternative-fuel fueling station" means a metered-for-fee, public-access recharging system for motor vehicles propelled in whole or in part by electricity. Such fueling station must be new and must not have been previously installed or used to refuel motor vehicles by any means. The term does not include a building or its structural components.
(c) "Taxpayer" means any person or entity subject to (i) the income tax imposed by Chapter 7 of Title 27, Mississippi Code of 1972, (ii) any premium and related retaliatory taxes imposed by Chapter 15 of Title 27, Mississippi Code of 1972, or (iii) the franchise tax imposed by Chapter 13 of Title 27, Mississippi Code of 1972.
SECTION 3. (1) Any taxpayer who places a qualified alternative-fuel fueling station in service during calendar year 2021 or 2022 shall be eligible to receive a credit against (a) the income tax imposed by Chapter 7 of Title 27, Mississippi Code of 1972, (b) any premium and related retaliatory taxes imposed by Chapter 15 of Title 27, Mississippi Code of 1972, or (c) the franchise tax imposed by Chapter 13 of Title 27, Mississippi Code of 1972.
(2) The credit shall be equal to seventy-five percent (75%) of the cost of any qualified alternative-fuel fueling station that is placed in service during calendar year 2021 or 2022.
(3) Taxpayers shall apply for the credit by submitting an application to the department. The application shall include:
(a) The name of the taxpayer;
(b) The number of qualified alternative-fuel fueling stations that will be placed in service during calendar year 2021 or 2022; and
(c) Any other information required by the department.
(4) If the taxpayer qualifies for the credit, the department shall approve the application and shall notify the taxpayer of the amount approved for the credit.
(5) The department shall consider applications in the order in which they are received and may approve applications until the total amount of credits approved under this act equals Twelve Million Five Hundred Thousand Dollars ($12,500,000.00) for each of the two (2) years in which application for the credit may be made, for a cumulative cap of Twenty-five Million Dollars ($25,000,000.00) over the two-year period.
(6) The credits allowed under this section shall be nonrefundable and shall not be transferable.
(7) Any unused credits may be carried forward for up to five (5) years.
SECTION 4. Any taxpayer claiming a credit under this act shall submit an annual report to the Department of Environmental Quality. The report shall be submitted for the year in which the qualified alternative-fuel fueling station is placed in service and for each of the next four (4) years thereafter. The report shall include the following information for each qualified alternative-fuel fueling station for which a credit is claimed:
(a) The number of charging events in the reporting period;
(b) The number of motor vehicles that were charged during the reporting period;
(c) The total kilowatt-hours dispensed for each charging event in the reporting period; and
(d) The average kilowatt-hours dispensed for all charging events in the reporting period.
SECTION 5. The department may adopt and promulgate rules and regulations to carry out this act.
SECTION 6. This act shall take effect and be in force from and after January 1, 2021.