Alternative Fuel Vehicle Act of 2001
Bill 14-308

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A BILL IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

Councilmembers Phil Mendelson, David Catania, Kevin Chavous, Jack Evans, Adrian Fenty and Chairman Linda Cropp introduced the following bill, which was referred to the Committee on Public Works and the Environment. 

To increase the market for alternative fuel vehicles in the District of Columbia by providing for a limited time tax credits for the purchase of alternative fuel vehicles and for the construction of related fueling infrastructure.

BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA,

That this act may be cited as the "Alternative Fuel Vehicle Act of 2001 ".

Sec. 2. Definitions.

For the purposes of this act:

(1) "Alternative fuel" means electricity, hydrogen, natural gas, or propane.

(2) "Alternative fuel vehicle" means:

(A) Any motor vehicle that operates solely on an alternative fuel and is not capable of also operating on gasoline or diesel fuel;

(B) The original use of which commences with the taxpayer and is acquired by the taxpayer for use or to lease, but not for resale; and

(C) Which is registered for operation on the highways of the District.

(A) It is used to dispense an alternative fuel or fuels into alternative fuel vehicles. If the facility charges electric vehicles, its primary use shall be to dispense alternative fuels into alternative fuel vehicles.

(B) It is located in the District of Columbia; and

(C) It is used by a business and is treated as business property for purposes of depreciation.

(4) "Incremental Cost" means the difference between the manufacturer's suggested retail price for an alternative fuel vehicle and the manufacturer's suggested retail price for a gasoline or diesel fuel motor vehicle of the same model. If the same model is not available as gasoline or diesel powered, then the Mayor shall, by rule, identify a similar vehicle that uses gasoline or diesel fuel for calculating the incremental cost, taking into account the model, make, engine size, and options.

(5) "Motor vehicle" means any self-propelled vehicle required to be registered pursuant to Title 40 of the District of Columbia Code for operation upon the highways of the District of Columbia.

Sec. 3. Tax credit for purchase of alternative fuel vehicles.

(b)(1) The amount of the credit allowed pursuant to subsection (a) shall be equal 5 to 50% of the incremental cost and shall be applied against either the person's personal 6 income or franchise tax imposed by Title 47 of the District of Columbia Code.

(2) A motor vehicle that has been certified to the most stringent available emission standard other than zero emission, or has been certified to zero emissions, shall qualify for an additional credit of 25% of the vehicle's incremental cost. For purposes of this paragraph the Mayor shall adopt by rule the emission standards of either the federal Environmental Protection Agency or the State of California.

(c) No more than one tax credit shall be granted pursuant to subsection (b) for any individual motor vehicle.

Sec. 4. Tax Credit for Construction of Fueling Facilities

(a) There shall be allowed to any person a tax credit for the construction or expansion of an alternative fueling facility. The credit shall be an amount equal to a percentage of the actual cost incurred by the person during the tax year for constructing, reconstructing, or expanding an alternative fueling facility that is directly attributable to the storage, compression, charging capability, or dispensing of alternative fuels to motor vehicles.

(b) A person may claim the following percentage of costs as a credit:

(1) Forty percent of the costs incurred on or after January 1, 2002, but prior to January 1, 2005; or

(2) Thirty percent of the costs incurred on or after January 1, 2005, but prior to January 1, 2007.

(c) For an alternative fueling facility that is generally accessible for use by the general public, the percentages in subsection (c) shall be increased by 10 percentage points.

(d) In no event shall any person claim a credit for all or any portion of the cost of construction, reconstruction, or acquiring an alternative fuel refueling facility, or any equipment used in connection with such facility, for which the person or any other person has previously claimed a credit pursuant to this act.

(e) The credits allowed by this section for any tax year shall not exceed the taxpayer's actual tax liability for such taxable year. If the amount of a credit allowed by this section exceeds the taxpayer's actual tax liability for any tax year in which the credit is claimed, such excess shall be an investment tax credit carryover to each of the five tax years following the unused credit year and shall be applied first to the earliest income tax years possible.

Sec. 5. Limitation on Yearly Tax Credits.

(a) The tax credits provided pursuant to sections 3 and 4 of this act are limited in the aggregate amount of $3.0 million per year, of which no more than $2 million shall be applied to fleet vehicles, $500,000 shall be applied to personal vehicles, and $500,000 to alternative fueling properties.

(b) The tax credits shall be provided on a first come basis, subject to section (a).

(c) The Mayor shall provide taxpayers with a letter or other formal indication that they qualify for a tax credit pursuant to this act.

Sec. 6. Miscellaneous.

(a) The basis of the property for which a credit is allowed pursuant to this act shall be reduced by the amount of such credit taken.

(b) The Mayor shall, by rule, provide for the recapturing of any credit with respect to any alternative fueling facility which ceases to be used for such purposes within 5 years of the year the credit is first taken.

(c) The Mayor shall promulgate rules for the implementation of this act.

Sec. 7. Fiscal impact statement.

The Council adopts the fiscal impact statement in the committee report as the fiscal impact statement required by section 602(c)(3) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Code § 1-233(c)(3)).

Sec. 8. This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), approval by the Financial Responsibility and Management Assistance Authority as provided in section 203(a) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995 (109 Stat. 116; D.C. Code §47-392.3(a)),, a 30-day period of Congressional review as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Code §1-233(c)(1)), and publication in the District of Columbia Register.