Arizona Form 313 - 2001 Alternative Fuel Vehicle (Afv) Credit Instructions (Page 2 of 6) in pdf

The taxpayer was unable to meet the above requirements

include the total refund, regardless if you choose a lump

due to circumstances that would make the requirement

sum, 2 annual installments or 3 annual installments.

unfair or inequitable to the taxpayer; and

Attachments

The taxpayer acted in good faith and intended to

primarily propel the vehicle with alternative fuel.

When you claim a credit on Form 313, you must attach a copy of

the notice, affidavit or AFV verification received from the

See Department of Revenue general tax procedure, GTP 01-02

Arizona Department of Commerce/Department of Revenue.

for more information about equitable relief.

You may apply for equitable relief when you claim the

Treatment of Prior Year AFV Credits

credit.

Use Form AFV-RR, Request for Relief From

If you have a carryover from taxable years beginning before

Alternative Fuel Vehicle Requirements, to apply for

January 1, 2000, you may continue to use any allowable

equitable relief. If you apply for equitable relief when you

carryover from those credits for a period of up to 5

claim the credit, attach your equitable relief request to your

consecutive taxable years from the taxable year in which the

income tax return.

credit was originally claimed.

If the department does not grant you equitable relief and

disallows your credit, you will be billed for any tax, penalty

Use of This Form

and interest that result from that disallowance. To avoid

Use this form to do the following.

penalty and interest charges, you can file your original return

without claiming the credit, then file an amended return to

•

Figure your AFV credit for 2001.

claim the credit. If you choose to claim the credit on an

•

Figure how much of an AFV credit carryover you have

amended return, be sure you attach your equitable relief

available from a prior taxable year.

request to the amended return.

•

If you elected to have a 2000 taxable year refund from

Form 313 refunded in 2 or 3 annual installments, use

Credit Amounts

Form 313 to figure how much of that 2000 taxable year

•

refund is allocable to 2001. See Form 313, Part XII.

If you purchased a new AFV and received a grant from

•

Figure any recapture of an AFV credit.

the Arizona Department of Commerce/Department of

Revenue, you may claim a tax credit for the incremental

NOTE: If you are eligible for a credit from more than one

cost of the vehicle.

source (e.g., direct investment, flow-through from a

•

If you purchased a new AFV and apply for a grant

partnership or S corporation), complete a separate Form

from the Arizona Department of Commerce/Department

313 for each source.

of Revenue, but funds are not available for a grant,

Do not use Form 313 to claim a credit for a neighborhood

and the Arizona Department of Commerce/Department

electric vehicle (NEV) or a carryover of a credit for a NEV.

of Revenue sends you an affidavit that states that you

If you are claiming a credit or credit carryover for a NEV,

are eligible for the tax credit, you may claim a credit

use Form 328.

in the amount specified under A.R.S. §§ 43-1086.B

(individuals) or 43-1174.B (corporations), plus the

What is an AFV?

incremental cost of the vehicle.

An AFV is a vehicle that is primarily propelled by an

•

If the AFV is a leased vehicle, and the lessee received

alternative fuel. The vehicle must be self-propelled and

an AFV verification from the Arizona Department of

registered and titled in Arizona for operation on highways.

Commerce/Department of Revenue, the lessee may only

AFVs include bi-fuel vehicles and dedicated vehicles. A

claim a credit in an amount specified under A.R.S.

neighborhood electric vehicle (NEV) is not an AFV for the

§ 43-1086.B or 43-1174.B.

This amount must be

purpose of the credit claimed on Form 313. However, see

reduced by any grant that the lessor may have received.

Form 328 for information concerning a NEV credit. Vehicles

The lessee may not claim a credit for the incremental

like golf carts, (even if used as a means of secondary

cost of the vehicle. If the lease agreement so provides,

transportation), motorized wheelchairs, or vehicles designed

the lessee may share the credit with the lessor.

primarily for agricultural purposes are not AFVs for this credit.

•

AFVs also do not include vehicles like forklifts that are not

The credit for converting a used conventionally fueled vehicle

designed primarily for operation on highways.

to operate on alternative fuel is the cost of the conversion.

•

For a vehicle to qualify for a credit, the vehicle engine must

The total amount allowed for a credit, plus any grant

meet one of the following:

that may have been received cannot be more than the

actual purchase price or cost of the vehicle.

The vehicle engine is certified to meet at a minimum the

United States Environmental Protection Agency low

Refund Information

emission vehicle standard under 40 Code of Federal

Regulations section 88.104-94, or 88.105-94.

If the credit allowable for the 2001 taxable year exceeds the

income taxes due for the 2001 taxable year, the taxpayer may

The vehicle engine meets the requirements of the

make an irrevocable election to have the refund paid in a

addendum to memorandum 1-A, issued by the United

lump sum, to have the refund paid in 2 annual installments,

States Environmental Protection Agency, as printed in

or to have the refund paid in 3 annual installments.

the Federal Register, Volume 62, Number 207, October

No interest will be paid on refunds made in installments.

27, 1997, pages 55635 through 55637.

Amounts refunded under this program will be subject to

The vehicle engine is the subject of a waiver for that

federal and Arizona tax.

The department will issue a

specific engine application from the United States

statement to you and to the IRS indicating the amount

Environmental Protection Agency's Memorandum 1-A

refunded to you.

The statement issued to the IRS will

requirements and that waiver is documented to the

Arizona Form 313 - 2001 Alternative Fuel Vehicle (Afv) Credit Instructions Page 2

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