HB 2274 -- Alternative Fuel and Vehicle Incentives

Sponsor:  Munzlinger

This bill changes the laws regarding tax incentives for the use
of alternative fuels.

ALTERNATIVE FUEL STATIONS

The bill authorizes a tax credit, from January 1, 2009, to
December 31, 2011, for eligible applicants who install and
operate a qualified alternative fuel vehicle refueling station.
The credit may be claimed for any tax year in which the applicant
is constructing the station.  The credit will be the lesser of
$20,000 or 20% of the total direct costs for the purchase and
installation of any alternative fuel storage and dispensing
equipment.  The costs of purchasing land or an existing
alternative fuel vehicle refueling station or the construction or
purchase of a structure are not considered eligible costs.  The
total amount of tax credits which can be claimed cannot exceed $3
million in 2009, $2 million in 2010 and $1 million in 2011.  Tax
credits may be carried forward for two years and sold, but will
be forfeited if a tax credit recipient stops selling alternative
fuel.

HYBRID VEHICLES

An income tax deduction is authorized, beginning January 1, 2009,
for an individual who purchases a qualified hybrid vehicle.  The
tax deduction will be the lesser of $1,500 or 10% of the
vehicle's purchase price and must be claimed in the tax year in
which the vehicle is purchased.

ALTERNATIVE FUELS

The bill authorizes a tax credit for the purchase of E-85,
biodiesel, or biodiesel-blended fuel.  For 2009, the tax credit
will be 25 cents per gallon for E-85 gasoline and five cents per
gallon for biodiesel or biodiesel-blended fuel purchased by the
taxpayer; for 2010 and 2011, 20 cents for E-85 gasoline and three
cents for biodiesel or biodiesel-blended fuel; and for 2012 and
thereafter, 15 cents for E-85 gasoline and five cents for
biodiesel or biodiesel-blended fuel.  The amount of tax credits
claimed annually per taxpayer must be between $50 and $500.  The
tax credit is not refundable but can be carried forward for three
years and will be available to taxpayers who choose to take the
standard deduction.  No more than $500,000 in tax credits can be
redeemed in any fiscal year.

The provisions regarding tax credits for the alternative fuel
vehicle refueling station and the purchase of alternative fuels
expire six years from the effective date.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated March 13, 2008 at 4:54 pm