HOUSE DOCKET, NO. 4421        FILED ON: 6/26/2023

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 4004

The Commonwealth of Massachusetts

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PRESENTED BY:

Angelo J. Puppolo, Jr.

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act relative to establishing an income tax credit for purchase of zero-emission and hybrid mobile machinery.

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PETITION OF:

HOUSE DOCKET, NO. 4421        FILED ON: 6/26/2023

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 4004

The Commonwealth of Massachusetts

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In the One Hundred and Ninety-Third General Court
(2023-2024)

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An Act relative to establishing an income tax credit for purchase of zero-emission and hybrid mobile machinery.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. Section 6 of chapter 62 of the General Laws, as appearing in the most recent edition, is hereby amended by adding at the end thereof the following new subsection:-

(1) As used in this subsection, the following words shall, unless the context clearly requires otherwise, have the following meanings:-

“Eligible taxpayer”, a person that (a) has a place of business located in the commonwealth (b) the principal business of which is the rental or leasing of tangible personal property to the general public and (c) derives at least 51% of the person’s annual gross revenue from the rental or lease of tangible personal property to the general public.

“Hybrid mobile machinery”, mobile machinery that is a qualified commercial clean vehicle under section 45W of the Internal Revenue Code and is capable of drawing energy from (a) gasoline, diesel , propane, natural gas, or other fuels intended to be used in an internal combustion engine and (b) a rechargeable energy storage system

“Mobile machinery”, has the meaning stated in section 4053(8) of the Internal Revenue Code.

“Zero-emission mobile machinery”, mobile machinery that is a qualified commercial clean vehicle under section 45W of the Internal Revenue Code or evaporative emissions.

“Associated storage infrastructure”, physical storage units or tanks to house alternative fuels or fuel sources, and battery charging equipment to support hybrid mobile machinery and mobile machinery.  

(2) subject to the limitations of this subsection, for a taxable year beginning after December 31, 2023, but prior to January 1, 2033, an eligible taxpayer may claim a credit against the state income tax for hybrid mobile machinery, zero-emission mobile machinery, or associated storage infrastructure purchased during the taxable year for use in the eligible taxpayer’s business or for rental or lease to the general public.

(3) the credit allowed under this section shall equal:

(i)with respect to zero-emission mobile machinery, an amount equal to the lessor of 30% of the purchase price of the mobile machinery, or $7,500 if the mobile machinery has a gross vehicle weight rating under 14,000 pounds or $15,000 if the mobile machinery has a gross vehicle weight rating of at least 14,000 pounds.

(ii)with respect to hybrid mobile machinery, an amount equal to the lesser of 25% of the purchase price of the mobile machinery, or $7,5,00 if the mobile machinery has a gross vehicle weight rating under 14,000 pounds or $15,000 if the mobile machinery has a gross vehicle weight rating of at least 14,000 pounds.

(iii)With respect to associated storage infrastructure, an amount equal to 30% of total cost, up to $50,000 for every unit installed at each business location or jobsite to support hybrid or zero emission mobile machinery.

(4)(i) The total amount of the credit allowed under this subsection for any taxable year may not exceed the state income tax imposed for the taxable year, calculated before the application of the credits allowed under this subsection.

(ii) if the credit otherwise allowable under this subsection exceeds the limit under (4)(i) of this subsection, an eligible taxpayer may apply the excess as a credit against the state income tax for succeeding taxable years until the full amount of the excess is utilized.