Clean Alternative Fuel Credit (10% and 50%) for: Vehicles, Equipment, and Related Filling or Recharging Stations
Description 10% Credit
A credit may be applied against the Connecticut business taxes imposed by Chapters 208, 209, 210, 211, or 212 of the Connecticut General Statutes in an amount equal to 10% of the expenditures paid or incurred for the incremental cost of purchasing a vehicle that is exclusively powered by a clean alternative fuel.
A credit may be applied against the Connecticut corporation business tax (Chapter 208) in an amount equal to 50% of the expenditures paid or incurred for any of the following:
The construction of any filling station or improvements to any existing filling station in order to provide compressed natural gas, liquefied petroleum gas, or liquefied natural gas;
The purchase and installation of conversion equipment incorporated into or used in converting vehicles powered by any other fuel to either exclusive use of clean alternative fuel or dual use of such other fuel and a clean alternative fuel, including but not limited to storage cylinders, cylinder brackets, regulated mixers, fill valves, pressure regulators, solenoid valves, fuel gauges, electronic ignitions, and alternative fuel delivery lines, if such converted vehicles, after conversion, meet generally accepted standards, including but not limited to the standards set by theAmerican Gas Association, the National Fire Protection Association, the American National Standards Institute, the American Society of Testing Materials, or theAmerican Society of Mechanical Engineers; or
The purchase and installation of equipment incorporated into or used in a compressed natural gas, liquefied petroleum gas or liquefied natural gas filling station, or electric recharging station for vehicles powered by clean alternative fuel, including but not limited to compressors, storage cylinders, associated framing, tubing and fittings, valves and fuel poles, and fuel delivery lines.
Incremental cost means the difference between the purchase price of a vehicle that is exclusively powered by a clean alternative fuel and the manufacturer's suggested retail price of a comparably equipped vehicle that is not powered by a clean alternative fuel.
Clean alternative fuel means compressed natural gas, liquefied petroleum gas, liquefied natural gas, or electricity when used as a motor vehicle fuel.
Conn. Gen. Stat. §12-217i contains a sunset provision for this credit. This credit may be claimed for income years beginning prior to January 1, 2008.
How to Compute the Credit
Calculate the credit by multiplying all qualifying alternative fuel vehicles and related equipment expenses by the appropriate percentage.
The 10% credit may be applied against any one of the following taxes:
Corporation business tax (Chapter 208);
Air carriers tax (Chapter 209);
Railroad companies tax (Chapter 210);
Community antenna television system
companies tax (Chapter 211); or
Utility companies tax (Chapter 212).
The 50% credit may only be applied against the corporation business tax (Chapter 208).
Any unused credit balance may be carried forward in any of three succeeding income years. No carryback is allowed.
Informational Publication 2006(15), Guide to Connecticut Business Tax Credits Issued: 04/24/07