HOUSE BILL No. 1451
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3.1-33.
Synopsis: Income tax credit for new clean fuel vehicle. Provides a
refundable adjusted gross income tax credit of $750 for the purchase
or lease of a new clean fuel vehicle if the vehicle is purchased in a
retail transaction that occurs from July 1, 2009, through June 30, 2010.
Effective: July 1, 2009.
January 13, 2009, read first time and referred to Committee on Commerce, Energy,
Technology and Utilities.
First Regular Session 116th General Assembly (2009)
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HOUSE BILL No. 1451
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-3.1-33; (09)IN1451.1.1. -->
SECTION 1. IC 6-3.1-33 IS ADDED TO THE INDIANA CODE
AS A NEW
CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]:
Chapter 33. Clean Fuel Vehicle Tax Credit
Sec. 1. As used in this chapter, "alternative fuel vehicle" has the
meaning set forth in IC 6-3.1-31.9.
Sec. 2. As used in this chapter, "clean fuel vehicle" means:
(1) an alternative fuel vehicle;
(2) an electric vehicle; or
(3) a hybrid vehicle;
that is manufactured in the United States by a company with a
United States headquarters.
Sec. 3. As used in this chapter, "department" refers to the
department of state revenue.
Sec. 4. As used in this chapter, "electric vehicle" means a vehicle
with one (1) or more electric motors for propulsion. The term does
not include a golf cart vehicle.
Sec. 5. As used in this chapter, "hybrid vehicle" means a vehicle
(1) draws propulsion energy from both an internal
combustion engine and an energy storage device; and
(2) employs a regenerative braking system to recover waste
energy to charge the energy storage device that provides
Sec. 6. (a) As used in this chapter, "new clean fuel vehicle
transaction" means a retail transaction occurring after June 30,
2009, and before July 1, 2010, involving the:
(1) purchase of; or
(2) entering into a lease agreement (as defined in
IC 9-23-2.5-4) for;
a new clean fuel vehicle.
(b) A transaction is not a new clean fuel vehicle transaction if
the vehicle is purchased by the taxpayer:
(1) at wholesale for the purpose of resale to another person;
(2) in a retail transaction from another person who purchased
the vehicle in a retail transaction.
Sec. 7. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross
income tax under IC 6-3-2-2.8(2);
(2) a partnership;
(3) a limited liability company; or
(4) a limited liability partnership.
Sec. 8. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability that is incurred under:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
(2) IC 6-5.5 (the financial institutions tax); and
(3) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of the credits that under
IC 6-3.1-1-2 are to be applied before the credit provided by this
Sec. 9. As used in this chapter, "taxpayer" means an individual
or entity that has any state tax liability.
Sec. 10. As used in this chapter, "United States headquarters"
means a physical presence in the United States of a domestic
business entity's regular or principal place of business and its chief
executive, operating, and financial officers.
Sec. 11. As used in this chapter, "vehicle" means a self-propelled
device having at least four (4) wheels and subject to annual
registration under IC 9-18 as a condition of its operation on the
Sec. 12. (a) A taxpayer that is the purchaser in a new clean fuel
vehicle transaction may claim a tax credit as provided by this
(b) The amount of the credit is seven hundred fifty dollars
Sec. 13. If the amount of the credit provided by this chapter to
a taxpayer in a taxable year exceeds the taxpayer's state tax
liability for that taxable year, the taxpayer is entitled to a refund
of the excess.
Sec. 14. A taxpayer may not sell, assign, convey, or otherwise
transfer a tax credit provided by this chapter.
Sec. 15. If a pass through entity is entitled to a tax credit under
this chapter but does not have state tax liability against which the
tax credit may be applied, a shareholder, partner, or member of
the pass through entity is entitled to a tax credit equal to:
(1) the tax credit determined for the pass through entity for
the taxable year; multiplied by
(2) the percentage of the pass through entity's distributive
income to which the shareholder, partner, or member is
Sec. 16. (a) To receive the tax credit provided by this chapter, a
taxpayer must claim the tax credit on the taxpayer's annual state
tax return or returns in the manner prescribed by the department.
(b) The taxpayer shall submit to the department all information
that the department determines is necessary for the calculation of
the credit provided under this chapter.