Session of 1998
                   
HOUSE BILL No. 3019
         
By Committee on Taxation
         
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            9             AN ACT relating to alternative-fueled motor vehicle property; providing
10             a tax credit; amending K.S.A. 79-32,201 and repealing the existing
11             section.
12            
13       Be it enacted by the Legislature of the State of Kansas:
14           Section 1. K.S.A. 79-32,201 is hereby amended to read as follows:
15       79-32,201. (a) Any taxpayer who makes expenditures for qualified alter-
16       native-fueled motor vehicle property shall be allowed a credit against the
17       income tax imposed by article 32 of chapter 79 of the Kansas Statutes
18       Annotated, as follows:
19           (1) For any qualified alternative-fueled motor vehicle property placed
20       in service on or after January 1, 1996, and before January 1, 1999, an
21       amount equal to 50% of the total amount expended for each qualified
22       alternative-fueled motor vehicle property but not to exceed:
23           (A) $2,500 for each such motor vehicle, as defined in subparagraph
24       (A) or (B) of paragraph (2) of subsection (d); or
25           (B) $50,000 for property defined under subparagraph (C) of para-
26       graph (2) of subsection (d);
27           (2) for any qualified alternative-fueled motor vehicle property placed
28       in service on or after January 1, 1999, an amount equal to 40% of the
29       total amount expended for each qualified alternative-fueled motor vehicle
30       property, but not to exceed:
31           (A) $2,000 for each such motor vehicle, as defined in subparagraph
32       (A) or (B) of paragraph (2) of subsection (d); or
33           (B) $40,000 for property defined under subparagraph (C) of para-
34       graph (2) of subsection (d).
35           (b) If no credit has been claimed pursuant to subsection (a), a credit
36       in an amount not exceeding the lesser of 5% of the cost of the vehicle or
37       $750 shall be allowed to a taxpayer who purchases a motor vehicle
38       equipped by the vehicle manufacturer with qualified alternative-fueled
39       motor vehicle property and who is unable or elects not to determine the
40       exact basis attributable to such property. The credit under this subsection
41       shall be allowed only to the first individual to take title to such motor
42       vehicle, other than for resale.
43           (c) The tax credit under subsection (a) or (b) shall be deducted from

HB 3019

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  1       the taxpayer's income tax liability for the taxable year in which the ex-
  2       penditures are made by the taxpayer. If the amount of the tax credit
  3       exceeds the taxpayer's income tax liability for the taxable year, the amount
  4       which exceeds the tax liability may be carried over for deduction from
  5       the taxpayer's income tax liability in the next succeeding taxable year or
  6       years until the total amount of the tax credit has been deducted from tax
  7       liability, except that no such tax credit shall be carried over for deduction
  8       after the third taxable year succeeding the taxable year in which the ex-
  9       penditures are made.
10           (d) As used in this section:
11           (1) ``Alternative fuel'' has the meaning provided by 42 U.S.C. 13211.
12           (2) ``Qualified alternative-fueled motor vehicle property'' means:
13           (A) Equipment installed to modify a motor vehicle which is propelled
14       by gasoline so that the vehicle may be propelled by an alternative fuel;
15           (B) a motor vehicle originally equipped to be propelled only by an
16       alternative fuel, but only to the extent of the portion of the basis of such
17       motor vehicle which is attributable to the storage of such fuel, the delivery
18       to the engine of such motor vehicle of such fuel and the exhaust of gases
19       from combustion of such fuel; or
20           (C) property which is directly related to the delivery of an alternative
21       fuel into the fuel tank of a motor vehicle propelled by such fuel, including
22       compression equipment and storage tanks for such fuel at the point where
23       such fuel is so delivered but only if such property is not used to deliver
24       such fuel into any other type of storage tank or receptacle and such fuel
25       is not used for any purpose other than to propel a motor vehicle.
26           (3) ``Taxpayer'' means any person who owns and operates a fleet of
27       10 or more motor vehicles and the average fuel consumption for such
28       fleet of motor vehicles is equal to or greater than 2,000 gallons per year
29       or any person who owns and operates property described under subpar-
30       agraph (C) of paragraph (2) of subsection (d).
31           (4) ``Person'' means every natural person, association, partnership,
32       limited liability company, limited partnership or corporation.
33           (e) The provisions of this section shall apply to all taxable years com-
34       mencing after December 31, 1995.
35           (f) The provisions of this section shall become effective on and after
36       January 1, 1996.
37           Sec. 2. K.S.A. 79-32,201 is hereby repealed.
38           Sec. 3. This act shall take effect and be in force from and after its
39       publication in the statute book.
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