House Bill 994

AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR THE AMOUNT OF SALES TAX OR USE TAX PAID BY A TAXPAYER ON THE PURCHASE OF A QUALIFIED PLUG-IN ELECTRIC DRIVE VEHICLE OR QUALIFIED HYBRID ELECTRIC VEHICLE; TO LIMIT THE AMOUNT OF THE CREDIT THAT MAY BE CLAIMED; TO PROVIDE THAT ANY AMOUNT FOR WHICH A CREDIT IS CLAIMED UNDER THIS SECTION MAY NOT BE USED AS A DEDUCTION BY THE TAXPAYER FOR STATE INCOME TAX PURPOSES; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) As used in this section, the following words shall have the meanings ascribed herein unless the context clearly requires otherwise:

(a) "Qualified plug-in electric drive vehicle" means a four-wheeled motor vehicle that:

(i) Is made by a manufacturer;

(ii) Is manufactured primarily for use on public streets, roads and highways;

(iii) Has not been modified from original manufacturer specifications;

(iv) Is acquired for use or lease by the taxpayer and not for resale;

(v) Is rated at not more than eight thousand five hundred (8,500) pounds unloaded gross vehicle weight;

(vi) Has a maximum speed capability of at least sixty-five (65) miles per hour;

(vii) Is propelled to a significant extent by an electric motor that draws electricity from a battery that:

1. Has a capacity of not less than four (4) kilowatt hours, and

2. Is capable of being recharged from an external source of electricity; and

(viii) Is acquired by the taxpayer on or after January 1, 2013.

(b) "Qualified hybrid electric vehicle" means a vehicle that:

(i) Is a light duty vehicle listed in the hybrid electric vehicle section of the most recent edition of the United States Department of Energy Clean Cities Vehicle Buyer's Guide or is a heavy duty vehicle with an onboard hybrid propulsion system listed in the hybrid propulsion system manufacturers section of the United States Department of Energy Clean Cities Guide to Alternative Fuel and Advanced Medium and Heavy Duty Vehicles;

(ii) Draws propulsion energy from onboard sources of stored energy generated by a rechargeable energy storage system; and

(iii) Does not have an external electrical plug connector that directly charges a battery or energy storage system.

(2) (a) Subject to the provisions of this section, a taxpayer who purchases a new qualified plug-in electric drive vehicle or qualified hybrid electric vehicle without the intent to resell the vehicle shall be entitled to a credit against the taxes imposed by this chapter in an amount equal to the lesser of the amount of sales tax or use tax paid on the purchase of the vehicle or Three Thousand Dollars ($3,000.00); however, the total amount of the credit cannot exceed 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.

(b) (i) The credit authorized in this section is limited to the acquisition of not more than one (1) vehicle during a taxable year by an individual taxpayer and not more than ten (10) vehicles during a taxable year by a taxpayer that is a business entity.

(ii) A credit may not be claimed under this section for a vehicle unless:

1. The vehicle is registered in this state; or

2. The owner has already conformed to any applicable state or federal laws or regulations governing clean-fuel vehicle or electric vehicle purchases applicable during the calendar year in which the vehicle is registered.

(c) Any amount for which a credit is claimed under this section may not be used as a deduction by the taxpayer for state income tax purposes.

(3) The Department of Revenue may promulgate rules and regulations necessary to implement and administer this section.

SECTION 2. Section 1 of this act shall be codified as a new section in Chapter 7, Title 27, Mississippi Code of 1972.

SECTION 3. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.

SECTION 4. This act shall take effect and be in force from and after January 1, 2013.