SECTION 1. Section 6 of Chapter 62 of the general laws, as appearing in the 2016 Official Edition, is hereby amended by inserting the following new subsection at the end thereof:-
(s) As used in this subsection, the following terms shall have the following meaning:
"Affiliated entity" means a person or business entity that is a member of the taxpayer's affiliated group within the meaning of Section 1504(a) of the Internal Revenue Code.
"Alternative fuel" means electricity, liquid petroleum gas, natural gas, or hydrogen fuel. The term does not include hybrid electric drives unless the vehicle has a gross weight equal to or greater than 8,500 pounds and less than 26,000 pounds.
"Alternative fuel heavy-duty vehicle" means a new commercial vehicle, with a gross vehicle weight ratio equal to or more than 26,001 pounds that is primarily fueled by an alternative fuel. As used in this paragraph, "primarily fueled by an alternative fuel" means a vehicle that is produced by an original equipment manufacturer and operates on 90 percent or more alternative fuel and on 10 percent or less gasoline or diesel fuel. In order to qualify for a tax credit under this section, the vehicle shall be registered in Massachusetts.
"Alternative fuel medium-duty vehicle" means a new commercial vehicle, with a gross vehicle weight ratio equal to 8,500 pounds or more and less than 26,001 pounds, that is solely fueled by an alternative fuel and that is produced by an original equipment manufacturer. In order to qualify for a tax credit under this Code section, the vehicle shall be registered in Massachusetts.
"New commercial vehicle" means a new commercial vehicle that: (A) is manufactured by an original equipment manufacturer, or (B) is manufactured by an original equipment manufacturer and any third-party equipment manufacturers, provided that such third-party manufacturers provide such parts or services prior to the original sale of such vehicle to a purchaser, and all vehicle components, including the alternative fuel system, are covered by the original equipment manufacturer or covered under separate warranties by the original equipment manufacturer and the third-party equipment manufacturer that together provide warranty for the complete vehicle.
"Taxpayer" means any person or business entity required by law to file a return or to pay taxes.
(2) A taxpayer shall be allowed a credit to purchase an alternative fuel heavy-duty vehicle not to exceed $20,000.00 per vehicle.
(3) A taxpayer shall be allowed a credit to purchase an alternative fuel medium-duty vehicle not to exceed $12,000.00 per vehicle.
(4) In no event shall the total amount of any tax credit under this section for a taxpayer or an affiliated entity for a taxable year exceed the lesser of (i) a taxpayer's income tax liability, or (ii) $250,000.00. An unused portion of such tax credit shall be allowed the taxpayer or an affiliated entity against succeeding years' tax liabilities. No such credit shall be allowed the taxpayer or an affiliated entity against prior years' tax liabilities.
(5) The commissioner shall promulgate any rules and regulations necessary to implement and administer the provisions of this section.
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