(TRENTON) – Legislation Assemblywoman Gabriela Mosquera sponsored to promote the purchase of natural gas-powered vehicles that are cleaner and more efficient was released Monday by an Assembly panel.
The bill (A-3692) provides corporation business tax credits and gross income tax credits for the purchase of certain compressed natural gas vehicles. The tax credits would be available for purchases made in tax years 2014, 2015, and 2016.
“With gas prices growing ever higher and America’s dependence on foreign oil a continued concern, we should be doing all we can to promote using vehicles powered by clean, inexpensive and abundant natural gas,” said Mosquera (D-Gloucester/Camden). “This would be good for our economy and our environment, and beneficial to the many New Jerseyans struggling to make ends meet.”
For business entities, the bill provides a credit for the purchase of natural gas passenger automobiles and a credit for the purchase of natural gas trucks. Each credit is available under the corporation business tax and gross income tax. To qualify for these credits, the business entity taxpayer must use the vehicle directly and exclusively in the taxpayer’s business, trade, or occupation.
For such automobiles purchased in a tax year beginning in 2014, a business taxpayer is allowed a credit of up to $3,500. For those purchased in a tax year beginning in 2015 a business taxpayer is allowed a credit of up to $2,500. For those purchased in a tax year beginning in 2016 a business taxpayer is allowed a credit of up to $1,500.
For such trucks purchased in a tax year beginning in 2013 a business taxpayer is allowed a credit of up to $25,000. For those trucks purchased in a tax year beginning in 2014 a business taxpayer is allowed a credit of up to $15,000. For those trucks purchased in a tax year beginning in 2015 a business taxpayer is allowed a credit of up to $7,500.
For personal income taxpayers, the bill provides a gross income tax credit for the purchase of natural gas passenger automobiles. For such passenger automobiles purchased in a tax year beginning in 2014 a personal income taxpayer is allowed a credit of up to $3,500. For those passenger automobiles purchased in a tax year beginning in 2015 a personal income taxpayer is allowed a credit of up to $2,500. For those passenger automobiles purchased in a tax year beginning in 2016 a personal income taxpayer is allowed a credit of up to $1,500.
The bill limits personal income taxpayers to one of these credits per tax year, except joint filers are allowed two credits per tax year.
“Making America less dependent on foreign oil is a national priority and President Obama has set the goal to reduce foreign oil imports by one-third in a little over ten years,” Mosquera said. “With this bill, we’d help put the nation on track to achieve this goal, while helping our environment and the bottom line of our residents and businesses.”
The Assembly Commerce and Economic Development Committee released the bill. It will now head to the Assembly Speaker for further consideration.