House Bill 1441

(As Passed the House)

AN ACT TO AUTHORIZE AN INCOME TAX CREDIT AND INSURANCE PREMIUM TAX CREDIT FOR TAXPAYERS FOR THE COSTS OF ANY QUALIFIED ALTERNATIVE-FUEL FUELING STATION FOR MOTOR VEHICLES THAT IS PLACED INTO SERVICE BY THE TAXPAYER DURING CALENDAR YEAR 2021, 2022 OR 2023; TO PROVIDE FOR THE AMOUNT OF THE CREDIT; TO PROVIDE THAT UNUSED PORTIONS OF A CREDIT MAY BE CARRIED FORWARD FOR FIVE CONSECUTIVE YEARS FROM THE CLOSE OF THE TAX YEAR IN WHICH THE CREDIT WAS EARNED; TO DEFINE THE TERM "QUALIFIED ALTERNATIVE-FUEL FUELING STATION"; TO IMPOSE A FEE ON MOTOR VEHICLES CHARGED AT QUALIFIED ALTERNATIVE-FUEL FUELING STATIONS IN THIS STATE; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) For the purposes of this section, the following words and phrases shall have the meanings ascribed in this section unless the context clearly indicates otherwise:

(a) "Department" means the Department of Revenue.

(b) "Motor vehicle" means and has the same definition as that term has in Section 27-19-3.

(c) "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, and must be capable of universal charging for all electric vehicles. The term "qualified alternative-fuel fueling station" does not include a building or its structural components.

(2) (a) Subject to the provisions of this section, any taxpayer who places a qualified alternative-fuel fueling station in service during calendar year 2021, 2022 or 2023 shall be eligible to receive a credit against the taxes imposed by Sections 27-7-5, 27-15-103, 27-15-109 and 27-15-123. The amount of credit that may be utilized by a taxpayer in a taxable year shall be limited to an amount not to exceed the lesser of seventy-five percent (75%) of the costs of any qualified alternative-fuel fueling station that is placed in service by the taxpayer during calendar year 2021, 2022 or 2023, or the total tax liability of the taxpayer for the taxes imposed by such sections of law for the taxable year. However, a taxpayer may not receive a credit for any costs paid for with federal funds received by the taxpayer. Any tax credit claimed under this section but not used in any taxable year may be carried forward for five (5) consecutive years from the close of the tax year in which the credits were earned.

(3) (a) A taxpayer shall apply for the credit by submitting an application to the department. The application shall include:

(i) The name of the taxpayer;

(ii) The number of qualified alternative-fuel fueling stations that will be placed in service by the taxpayer during calendar year 2021, 2022 or 2023; and

(iii) Any other information required by the department.

(b) If the taxpayer qualifies for the credit, the department shall approve the application and shall notify the taxpayer of the amount of credits approved.

(4) The department shall consider applications for the credit under this section in the order in which the department receives the applications. The aggregate amount of credits that may be approved by the department under this section shall not exceed Five Million Dollars ($5,000,000.00) in calendar year 2021, Ten Million Dollars ($10,000,000.00) in calendar year 2022, and Fifteen Million Dollars ($15,000,000.00) in calendar year 2023.

(5) A taxpayer claiming a credit under this section 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;

(d) The average kilowatt-hours dispensed for all charging events in the reporting period.

SECTION 2. (1) For the purposes of this section, the following words and phrases shall have the meanings ascribed in this section unless the context clearly indicates otherwise:

(a) "Motor vehicle" means and has the same definition as that term has in Section 27-19-3.

(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, regardless of whether the recharging system is capable of universal charging for all electric vehicles. The term "qualified alternative-fuel fueling station" does not include a building or its structural components.

(2) (a) In addition to any other fees and taxes, there is imposed a fee of Two Dollars and Fifty Cents ($2.50) on each motor vehicle charged at a qualified alternative-fuel fueling station in this state. The owner or operator of the qualified alternative-fuel fueling station shall collect the fee at the time of the motor vehicle charging and shall remit the proceeds of the fee to the Department of Revenue. The Department of Revenue shall apportion the proceeds of the fee among the various purposes specified in Section 27-5-101 for gasoline and diesel fuel taxes in the same proportion that those taxes were apportioned for those purposes during the previous state fiscal year.

(b) Beginning July 1, 2022, and each succeeding July 1 thereafter, the rate of the fee imposed under this section and in effect at the end of the preceding state fiscal year shall be adjusted by increasing the fee by a percentage amount equal to the United States inflation rate for the previous calendar year ending on December 31 as certified by the Department of Finance and Administration. The United States inflation rate for a calendar year shall be the Consumer Price Index for the calendar year for urban consumers as calculated by the Bureau of Labor Statistics of the United States Department of Labor. In adjusting the amount of the fee, amounts equal to or greater than Fifty Cents (50¢) shall be rounded to the next highest whole dollar.

(3) The Department of Revenue shall have all powers necessary to implement and administer the provisions of this section, and the department shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section.

SECTION 3. Section 1 of this act shall be codified as a new section in Chapter 7, Title 27, Mississippi Code of 1972.

SECTION 4. Nothing in Section 1 of 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 and insurance premium tax laws before the date on which Section 1 of 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 and insurance premium 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 5. Section 1 of this act shall take effect and be in force from and after January 1, 2021, and the remaining sections of this act shall take effect and be in force from and after July 1, 2021.