Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
Chapter 63 of the General Laws, as appearing in the 1986 Official Edition, is hereby amended by inserting after section 31C the following three sections:-
Section 31D. As used in sections thirty-one D to thirty-one F, inclusive, the following words shall, unless the context requires otherwise, have the following meanings:-
"Commuting student", a full-time student at a college, university or other postsecondary educational institution, who travels between his residence and an educational institution on a regular basis.
"Company shuttle van", a highway vehicle which meets all of the following criteria:
(1) has a seating capacity of at least seven adults, including the driver;
(2) at least eighty per cent of the mileage of which reasonably can be expected to be for the purpose of transporting taxpayer's employees between their residence, or public transportation facilities that interface with such routes and their place of employment within the commonwealth, provided, however, that the number of employees transported on such trips is at least one half of the adult seating capacity of such vehicle, not including the driver.
"Employee", either of the following:
(1) an individual who performs service for an employer for more than eight hours per week for remuneration, or
(2) any commuting student.
"Employer", a taxpayer who is either of the following:
(1) a person for whom services are performed by employees, except government agencies, or
(2) a private educational institution which enrolls students at higher than the secondary level.
"Employer sponsored ride sharing incentive program", a program undertaken by an employer either alone or in cooperation with other employers to encourage or provide fiscal or other incentives to employees to make the home to work commute trip by any mode other than the single occupant motor vehicle.
"Ride sharing", travel by any mode other than the single occupant motor vehicle including, but not limited to, carpooling, vanpooling, public or private buspooling, subscription taxipooling, and public transit, either in highway traffic or on ways or lanes designated for the exclusive use of carpools, vanpools, public or private buspools, subscription taxipools and public transit.
"Third-party vanpool", a vanpool that is not administered and operated by an employer or his employees, but is administered and operated by an outside organization, including a government agency, which makes vehicles and other equipment and services available for use by employers and their employees.
"Vanpool", seven or more persons commuting on a daily basis to and from work by means of a vehicle with a seating arrangement designed to carry seven to fifteen adults, including the driver.
Section 31E. (a) A domestic or foreign corporation shall be allowed a credit against its excise due under this chapter equal to thirty per cent of the cost incurred during the taxable year for the purchase of company shuttle vans, as defined under section one hundred and seventy-nine (d) of the federal Internal Revenue Code, as amended and in effect for the taxable year, or lease of company shuttle vans, as defined in section thirty-one D of chapter sixty-three, used by the corporation in the commonwealth and situated in the commonwealth on the last day of the taxable year.
(b) With respect to company shuttle vans so leased and placed in qualified use during the taxable year, the amount of the credit allowed hereunder shall be thirty per cent of the lease or contract payment incurred during the taxable year, excluding insurance, maintenance, fuel, driver's salaries, finance charges or other operating expenses.
(c) The depreciation deduction that may be taken with respect to any motor vehicle qualifying for a credit hereunder shall be based under its cost less the credit allowable hereunder.
(d) The credit allowed hereunder for any taxable year shall not reduce the excise to less than the amount due under section thirty-two (b), thirty-nine (b) or sixty-seven. The limitation provided under section thirty-two C shall also apply to any credit allowed hereunder.
(e) With respect to property which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the credit is to be taken, the amount of the credit shall be that portion of the credit provided for in paragraph (a) which represents the ratio which the months of qualified use bear to the months of useful life. If property on which credit has been taken is disposed of or ceases to be in qualified use prior to the end of its useful life, the difference between the credit taken and the credit allowed for actual use must be added back as additional taxes due in the year of disposition; provided, however, that if such property is disposed of or ceases to be in qualified use after it has been in qualified use for more than four consecutive years, it shall not be necessary to add back the credit, as herein provided. The amount of credit allowed for actual use shall be determined by multiplying the original credit by the ratio which the months of qualified use bear to the months of useful life. For the purposes of this paragraph, "useful life of property" shall be the same as that used by the corporation for depreciation purposes when computing federal income tax liability.
(f) The credit allowed hereunder shall not apply to any property which would otherwise be required as part of the employer's business activities in the absence of an employer-sponsored ride sharing incentive program, as defined in section thirty-one D of chapter sixty-three.
(g) The credit provided by this section shall apply to taxable years ending on or after December thirty-first, nineteen hundred and eighty-eight.
Section 31F. (a) Upon registration of a vanpool vehicle, registration plates for each vehicle shall be provided which include the word VANPOOL on the face thereof.
(b) There shall be no vehicle registration fee required for vanpool vehicle owners who are able to establish the following:
(1) the vanpool vehicle will be used principally for the purpose of carrying employees between their residences and their places of employment or nearby public transportation facilities.
(2) there is a signed list of seven persons, including the driver of the vanpool vehicle, who have agreed to participate in the vanpool for at least eleven of the twelve months subsequent to the registration of the vehicle.
(3) such vehicle is covered by a policy of insurance which shall indemnify the insured against any liability for personal injury, the death of any person or property damage, which injury, death or damage may result from or have been caused by the use or operation of the vanpool vehicle described in the contract of insurance. The amount of such insurance or indemnity against claims for personal injury or death shall be not less than one million dollars. Any person or company issuing any such insurance or indemnity bond shall file a certificate with the registrar of motor vehicles in such form as may be prescribed by said registrar. No such insurance or bond shall be subject to nonrenewal or cancellation while the registration is in force unless said registrar has been given at least twenty days' written notice prior to the effective date of nonrenewal or cancellation. If within such twenty day period said registrar is not presented with satisfactory evidence that other insurance or another indemnity bond has been obtained the registration shall be revoked. Liability under such insurance policy or bond shall continue beyond such twenty day notification period until such time as the registration for such vanpool vehicle has been surrendered and its plates have been returned to said registrar, but in no case shall such liability continue for more than ten days after such notification period has expired.
(c) If the vanpool owner is unable to establish the conditions of paragraph (b), the vehicle registration fee for each vanpool vehicle shall in no instance exceed the fee which would be required to be paid for such vehicle if it were not used for the purpose of vanpooling.