Senate Bill No. 363
(Senators Ross, Helmick, Sharpe and Schoonover, original
[Passed March 7, 1996; in effect ninety days from passage.]
AN ACT to amend chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article six-d, relating to
establishing an alternative-fuel motor vehicle tax credit
which may be applied against personal net income tax and
corporation net income tax; setting forth legislative
findings; specifying definitions; specifying the mode and
manner in which the credit may be taken; and specifying an
Be it enacted by the Legislature of West Virginia:
That chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, be amended by
adding thereto a new article, designated article six-d, to read as follows:
ARTICLE 6D. ALTERNATIVE-FUEL MOTOR VEHICLES TAX CREDIT.
§11-6D-1. Legislative findings and purpose.
Consistent with the public policy as stated in section one,
article two-d, chapter twenty-four of this code, the Legislature
hereby finds that the use of alternative fuels is in the public
interest and promotes the general welfare of the people of this
state insofar as it addresses serious concerns for our
environment and our state's and nation's dependence on foreign
oil as a source of energy. The Legislature further finds that
this state has an abundant supply of alternative fuels and an
extensive supply network and that, by encouraging the use of
alternatively-fueled motor vehicles, the state will be reducing
its dependence on foreign oil and attempting to improve its air
However, because the cost of motor vehicles which utilize
alternative-fuel technologies remains high in relation to motor
vehicles that employ more traditional technologies, citizens of
this state who might otherwise choose an alternatively-fueled
motor vehicle are forced by economic necessity to continue using
motor vehicles that are fueled by more conventional means. Therefore, in order to encourage the use of alternatively-fueled
motor vehicles and possibly reduce unnecessary pollution of our
environment and reduce our dependence on foreign sources of
energy, there is hereby created an alternative-fuel motor
vehicles tax credit.
As used in this article, the following terms have the
meanings ascribed to them in this section:
(a) "Alternative fuel" includes:
(1) Compressed natural gas;
(2) Liquified natural gas;
(3) Liquified petroleum gas;
(6) Fuel mixtures that contain eighty-five percent or more
by volume, when combined with gasoline or other fuels, of the
(B) Ethanol; or
(C) Other alcohols;
(7) Coal-derived liquid fuels; and
(8) Electricity, including electricity from solar energy.
(b) "Alternative-fuel motor vehicle" means a motor vehicle
that as a new or retrofitted or converted fuel:
(1) Operates solely on one alternative fuel;
(2) Is capable of operating on one or more alternative
fuels, singly or in combination; or
(3) Is capable of operating on an alternative fuel and is
also capable of operating on gasoline or diesel fuel.
§11-6D-3. Credit allowed for alternative-fuel motor vehicles;
application against personal income tax or
corporate net income tax; effective date.
The tax credit provided in this article may be applied
against the tax liability of a taxpayer imposed by the provisions
of either article twenty-one or article twenty-four of this
chapter, but in no case may more than one credit be granted for
the same alternative-fuel motor vehicle as defined in subdivision
(b), section two of this article. This credit shall be available
for those tax years beginning after the thirtieth day of June,
one thousand nine hundred ninety-seven.
§11-6D-4. Eligibility for credit.
A taxpayer is eligible to claim the credit against tax provided in this article if he or she:
(a) Converts a motor vehicle that is presently registered in
West Virginia to operate:
(1) Exclusively on an alternative fuel as defined in
subdivision (a), section two of this article; or
(2) In a dual fuel mode, as defined in paragraph (6),
subdivision (a), section two of this article; or
(b) Purchases from an original equipment manufacturer or an
after-market conversion facility a new dedicated or dually fueled
alternative-fuel motor vehicle for which the taxpayer then
obtains a valid West Virginia registration.
(c) The credit provided in this article is not available to
and may not be claimed by any taxpayer under any obligation
pursuant to any federal or state law, policy or regulation to
convert to the use of alternative fuels for any motor vehicle.
§11-6D-5. Amount of credit.
(a) The total amount of any credit allowed under this
article is limited by and subject to the provisions set forth in
this subsection and subsections (b), (c) and (d) of this section
and may not exceed: (1) In the case of a motor vehicle
conversions or retrofitting, the actual cost of converting from a traditionally-fueled motor vehicle to an alternatively-fueled
motor vehicle; or (2) in the case of a new purchase, the
incremental difference in cost between an alternative-fuel motor
vehicle and a comparably equipped motor vehicle that employs
traditional fuel technology.
(b) The maximum total credit allowed for an alternative-fuel
motor vehicle is:
(1) For a vehicle with a gross vehicle weight of not more
than ten thousand pounds, three thousand seven hundred fifty
(2) For a vehicle with a gross vehicle weight of more than
ten thousand pounds up to twenty-six thousand pounds, nine
thousand two hundred fifty dollars;
(3) For a truck or van with a gross vehicle weight of more
than twenty-six thousand pounds, fifty thousand dollars; and
(4) For a bus capable of seating at least twenty adults,
fifty thousand dollars.
(c) Subject to the limitations set forth in subsection (a)
of this section, a taxpayer who is otherwise entitled to a credit
against tax who claims the credit provided for in this article on the basis of any alternative-fuel motor vehicle that operates
exclusively on electricity is entitled to an additional credit of
ten percent of the credit which is otherwise allowed under
subsection (b) of this section.
(d) The maximum incremental credit allowed per year is one
third of the credit attributable to five vehicles with the
cumulative credit over a three-year period not to exceed one
third of the credit attributable to fifteen vehicles.
§11-6D-6. Credit to be apportioned over three-year period.
The credit against tax for any alternative-fuel motor
vehicle provided for in this article may be taken by a taxpayer
claiming the credit only in three equal increments over a
three-consecutive tax-year period, so that in any tax year in
which a taxpayer is entitled to the credit, only one third of the
total credit allowed for a certain alternative-fuel motor vehicle
under section five may be taken.
§11-6D-7. Duration of availability of credit.
The tax credit provided in this article shall expire by
operation of law ten years after the effective date of this
article: Provided, That any eligible taxpayer who makes a valid claim for the credit before that expiration is entitled to claim
and receive the remaining one-third increment or increments of
the total credit allowed under section five of this article for
the tax year or years ensuing after the expiration of this
article until the total amount of credit allowed has been
§11-6D-8. Commissioner to design forms and schedules;
promulgation of rules.
(a) The tax commissioner shall design and provide to the
public simplified forms and schedules to implement and effectuate
the provisions of this article.
(b) The tax commissioner is authorized to promulgate rules
for the administration of this article consistent with its
provisions and in accordance with article three, chapter
twenty-nine-a of this code.
(c) Within one year following the expiration of the credit
established in this article the state tax commissioner shall
provide a written report to the Legislature setting forth the
utilization of the credit, the benefit of the credit and the
overall cost of the credit.