Date Requested:February 17, 2013
Time Requested:01:32 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R2066 Introduced SB185
CBD Subject: ALTERNATIVE FUEL VEHICLE TAX CREDITS
FUND(S)
General Revenue Fund
Sources of Revenue
General Fund
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

     The stated purpose of this bill is to refine, revise and modernize the alternative fuel motor vehicle infrastructure credit and alternative fuel motor vehicle credit to more closely align the code with specific intended economic development goals and budgetary goals.
    
     As written, the proposed bill would revise the Alternative-Fuel Motor Vehicle Tax Credit for motor vehicles to narrow the focus to vehicles powered by compressed natural gas (CNG), liquefied natural gas (LNG), or liquefied petroleum gas (LPG) for taxable years beginning on and after January 1, 2013. The bill also proposes to terminate the Alternative-Fuel Motor Vehicle Tax Credits for home vehicle refueling infrastructure for tax years beginning after December 31, 2012 to eliminate an overlap with an existing tax credit. Additionally, the bill revises the Alternative-Fuel Motor Vehicle Tax Credits for commercial vehicle refueling infrastructure for taxable years beginning on and after January 1, 2014. And, the bill establishes termination dates for the tax credit and specifies the carryover period for tax credit not fully used in the first year of entitlement.
    
     According to our interpretation, passage of this bill will reduce the cost of the Alternative-Fuel Motor Vehicle Tax Credits in FY2014 by $10 million. The $10 million savings is included in the Governor’s official revenue estimates for FY2014. Failure to enact this bill will result in a $10 decrease in the General Revenue Fund from the official revenue estimates for FY2014.
    
     Additional Administrative costs to the State Tax Department Associated with passage of this bill would be minimal.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2013
Increase/Decrease
(use"-")
2014
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
     As written, the proposed bill would revise the Alternative-Fuel Motor Vehicle Tax Credit for motor vehicles to narrow the focus to vehicles powered by compressed natural gas (CNG), liquefied natural gas (LNG), or liquefied petroleum gas (LPG) for taxable years beginning on and after January 1, 2013. The bill also proposes to terminate the Alternative-Fuel Motor Vehicle Tax Credits for home vehicle refueling infrastructure for tax years beginning after December 31, 2012 to eliminate an overlap with an existing tax credit. Additionally, the bill revises the Alternative-Fuel Motor Vehicle Tax Credits for commercial vehicle refueling infrastructure for taxable years beginning on and after January 1, 2014. And, the bill establishes termination dates for the tax credit and specifies the carryover period for tax credit not fully used in the first year of entitlement.
    
     According to our interpretation, passage of this bill will reduce the cost of the Alternative-Fuel Motor Vehicle Tax Credits in FY2014 by $10 million. The $10 million savings is included in the Governor’s official revenue estimates for FY2014. Failure to enact this bill will result in a $10 decrease in the General Revenue Fund from the official revenue estimates for FY2014.
     Additional Administrative costs to the State Tax Department Associated with passage of this bill would be minimal.
    


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov