BILL REQ. #: H-1000.1
_____________________________________________
HOUSE BILL 1647
_____________________________________________| State of Washington | 59th Legislature | 2005 Regular Session |
By Representatives B. Sullivan, Morris, Chase, Williams, Sells, Linville and SimpsonRead first time 02/01/2005. Referred to Committee on Technology, Energy & Communications.
AN ACT Relating to providing incentives for hydrogen and the
alternative fuels marketplace; adding new sections to chapter 82.04
RCW; adding a new section to chapter 82.08 RCW; adding a new section to
chapter 82.12 RCW; providing an effective date; providing a contingent
expiration date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 A new section is added to chapter 82.04 RCW
to read as follows:
(1)(a) Persons who are taxable under this chapter may take a credit
for the purchase, or the lease for a period of at least three years, of
new alternative fuel vehicles, if the vehicles are exclusively used in
business operations.
(b) The credit in this subsection is based upon the following
schedule:
| VEHICLE TONNAGE | CREDIT |
| Less than 10,000 pounds gross
vehicle weight | 30 percent of the cost or
$5,000, whichever is less |
| 10,000 pounds or more gross
vehicle weight | 30 percent of the cost or
$25,000, whichever is less |
(2)(a) Persons who are taxable under this chapter may take a credit
for conversion costs incurred in modifying motor vehicles to use
alternative fuels, if the vehicles are exclusively used in business
operations and the conversion is performed on a vehicle or engine for
which a United States environmental protection agency certificate of
conformity or a certification from the California air resources board
has been issued for the model year and exhaust and evaporative
emissions test groups of the vehicle or engine.
(b) The credit in this subsection is based upon the following
schedule:
| VEHICLE TONNAGE | CREDIT |
| Less than 10,000 pounds gross
vehicle weight | 80 percent of the conversion
cost or $5,000, whichever is
less |
| 10,000 pounds or more gross
vehicle weight | 80 percent of the conversion
cost or $25,000, whichever is
less |
(3)(a) If machinery and equipment is used directly for dispensing
alternative fuels into a motor vehicle, persons who are taxable under
this chapter may take a credit for the costs of: (i) The machinery and
equipment; (ii) services rendered in respect to constructing,
installing, repairing, cleaning, decorating, altering, or improving the
machinery and equipment; or (iii) tangible personal property that
becomes an ingredient or component of the machinery and equipment.
(b) The credit is based upon the following schedule:
(i) Fifty percent of the costs incurred at facilities open to the
public not to exceed five hundred thousand dollars; and
(ii) Twenty-five percent of the costs incurred at facilities not
open to the public not to exceed two hundred fifty thousand dollars.
(c) If the machinery and equipment are used for the retail sale of
an alternative fuel and for other purposes, the portion of the cost
that is eligible for credit under this subsection is the cost of the
portion of the machinery and equipment used directly for the retail
sale of an alternative fuel.
(4) Persons who are taxable under this chapter may take a credit
equal to ten cents per gallon for alternative fuel for use in motor
vehicles, if the motor vehicles are exclusively used in business
operations. In the case of gaseous fuels, such as compressed natural
gas, the credit shall be calculated on a gasoline gallon equivalent
basis. Where a blend of biodiesel fuel and petroleum diesel fuel is
used, only the biodiesel fuel portion of the blend shall be eligible
for the credit provided under this section.
(5) Credits may not exceed the amount of tax that would otherwise
be due under this chapter. Credits may be accrued and carried over
until they are used. Refunds shall not be granted in place of credits.
The maximum amount for a credit under this section that may be claimed,
by each person, for any calendar year shall not exceed:
(a) Five hundred thousand dollars for the credit under subsection
(1) of this section;
(b) Two hundred fifty thousand dollars for the credit under
subsection (2) of this section;
(c) Two million dollars for the credit under subsection (3) of this
section; and
(d) Two hundred thousand dollars for the credit under subsection
(4) of this section.
(6) Credits may not be claimed for expenditures that occurred
before the effective date of this section or expenditures that occur
after the expiration date determined in section 5 of this act.
(7) For the purposes of this section, the following definitions
apply:
(a) "Alcohol fuel" means any alcohol made from a product other than
petroleum or natural gas, which is used alone or in combination with
gasoline or other petroleum products for use as a fuel for motor
vehicles, farm implements and machines, or implements of husbandry.
(b) "Alcohol fuel blend" means fuel that contains at least eighty-five percent alcohol fuel by volume.
(c) "Alternative fuel" means natural gas, hydrogen, or a blend of
natural gas and hydrogen. For the purpose of subsection (2) of this
section, "alternative fuel" also means liquified petroleum gas or
electricity. For the purpose of subsection (3) of this section,
"alternative fuel" also means electricity. For the purpose of
subsection (4) of this section, "alternative fuel" also means biodiesel
fuel or alcohol fuel blends.
(d) "Biodiesel fuel" means a mono alkyl ester of long chain fatty
acids derived from vegetable oils or animal fats for use in
compression-ignition engines and that meets the requirements of the
American society of testing and materials specification D 6751 in
effect as of January 1, 2003.
(e) "Conversion cost" means costs expended for equipment, parts,
and labor involved in modifying a motor vehicle to operate on
alternative fuels.
(f) "Machinery and equipment" means industrial fixtures, devices,
and support facilities, including alternative fuel storage tanks, and
tangible personal property that becomes an ingredient or component
thereof, including repair parts and replacement parts that are integral
and necessary for the dispensing of alternative fuels into a motor
vehicle.
(g) "New alternative fuel vehicle" means a motor vehicle, as
defined in RCW 46.96.020, originally designed and equipped by the
manufacturer to operate: (i) Exclusively on natural gas, hydrogen, a
blend of hydrogen and natural gas, or electricity; or (ii) as a fuel
cell vehicle. For purposes of this subsection (7)(g), "fuel cell
vehicle" is defined as a vehicle that operates on an electric motor
drawing current from combining hydrogen and oxygen in an
electrochemical process.
NEW SECTION. Sec. 2 A new section is added to chapter 82.08 RCW
to read as follows:
(1) The tax levied by RCW 82.08.020 does not apply to sales of
natural gas vehicle fueling or refueling appliances and associated
accessories, or to services rendered in respect to installing such
appliances and accessories.
(2) A person taking the exemption under this section must keep
records necessary for the department to verify eligibility under this
section. The exemption is available only when the buyer provides the
seller with an exemption certificate in the form and manner prescribed
by the department. The seller shall retain a copy of the certificate
for the seller's files.
(3) For the purposes of this section, "vehicle fueling appliance"
or "vehicle refueling appliance" means a self-contained natural gas
compressor package not containing storage, designed for the unattended
dispensing of natural gas, at a flow rate not in excess of ten standard
cubic feet per minute, into the fuel tank of a motor vehicle or into a
storage system for ultimate use in a motor vehicle and that is
certified and listed by an approved nationally recognized testing
laboratory.
NEW SECTION. Sec. 3 A new section is added to chapter 82.12 RCW
to read as follows:
(1) The provisions of this chapter do not apply in respect to the
use of natural gas vehicle fueling or refueling appliances and
associated accessories, or to services rendered in respect to
installing such appliances and accessories.
(2) For the purposes of this section, the definitions in section 2
of this act apply.
NEW SECTION. Sec. 4 A new section is added to chapter 82.04 RCW
to read as follows:
In computing tax there may be deducted from the measure of tax
amounts received from the retail sale of natural gas, hydrogen, or a
blend of hydrogen and natural gas, for use in a motor vehicle.
NEW SECTION. Sec. 5 (1) This act expires the earlier of:
(a) January 1, 2015; or
(b) January 1st of the year following the first calendar year in
which, on the first day in November, the total number of alternative
fuel retail motor vehicle refueling facilities constructed after the
effective date of this act and that are open to the public is equal to
ten. The department of ecology shall provide the department of revenue
information necessary to make this determination.
(2) "Alternative fuel" has the same meaning as provided in section
1 of this act.
NEW SECTION. Sec. 6 This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the
state government and its existing public institutions, and takes effect
July 1, 2005.
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