Form Ct-40-I - Instructions For Form Ct-40 - New York State Department Of Taxation And Finance

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CT-40-I
New York State Department of Taxation and Finance
Instructions for Form CT-40
(8/98)
Claim for Alternative Fuels Credit
General Information
Example: A corporation pays $5,000 to purchase new
clean-fuel components to retrofit a 3,000 pound
Chapter 389 of the Laws of 1997 amended the Tax Law to
gasoline-powered vehicle to operate on
provide credits to taxpayers that purchase new electric or
alternative fuels. The corporation pays an
other alternative (clean-fuel) vehicles or convert gasoline or
additional $2,000 to have these components
diesel-powered vehicles to use electric or clean fuel.
installed on the vehicle. The credit is computed
Investments in new clean-fuel refueling property also qualify
on the entire $7,000
for credit.
($7,000
.60
$4,200 credit).
The credit applies to vehicles and refueling property which
For New York State purposes, the cost is not limited by the
are eligible for the federal electric vehicles credit under
federal expense limits of IRC section 179A(b)(1), and the
section 30 of the Internal Revenue Code (IRC) or the
credit may be allowed for the entire cost even if some or all
clean-fuel deduction under section 179-A of the Code.
of the cost is expensed under IRC section 179.
The credits are available for vehicles and property placed in
Example: A corporation incurs a total cost of $15,000
service during tax years beginning after 1997 and before
($5,000 per vehicle) to convert three
2003. Any unused credit may be carried forward indefinitely.
diesel-powered vehicles to alternative fuels use.
Do not complete this form if the vehicles and property are
Each vehicle weighs 20,000 pounds. For federal
disposed of or cease to qualify in the same year they are
tax purposes, the corporation elects to treat this
placed in service. No credit is available because the entire
entire cost as an expense under section 179 of
credit allowed must be recaptured.
the IRC. However, for New York State purposes,
the credit is computed on the entire $15,000
Eligibility
($5,000
3
$15,000
.60
$9,000 credit).
The following taxpayers are eligible to claim these credits:
Clean-Fuel Vehicle Refueling Property
● General business corporations taxable under Article 9-A;
Fifty percent of the cost of qualified new clean-fuel vehicle
● Transportation and transmission corporations taxable
refueling property can be claimed as a credit. There is no
under Article 9, sections 183 and 184;
credit limit on qualified clean-fuel refueling property.
● Cooperative agricultural corporations taxable under
To qualify for the credit, the property must be placed in
Article 9, section 185; and,
service during the taxable year and used more than 50% of
● Certain utility corporations taxable under Article 9,
the time in a trade or business located in New York State.
section 186.
For New York State purposes, the cost is not limited by the
Exception - Gas or electric corporations subject to the
federal expense limits of IRC section 179A(b)(2), and the
supervision of the Department of Public Service are not
credit may be allowed even if some or all of the cost is
eligible for the credit on electric vehicles.
expensed under IRC section 179.
Credit Amounts
Definitions
Electric Vehicles
Qualified electric vehicle is defined by reference to section
Fifty percent of the incremental cost of qualified new
30(c) of the IRC. It is a motor vehicle that is powered
electric vehicles can be claimed as a credit. The vehicle
primarily by an electric motor drawing current from
must be placed in service during the taxable year and must
rechargeable batteries, fuel cells, or other portable sources
be registered in New York State. The maximum credit is
of electric current. Original use of the vehicle must
$5,000 per electric vehicle.
commence with the taxpayer, and the vehicle must be
acquired for use by the taxpayer, and not for resale.
Clean-Fuel Vehicle Property
Sixty percent of the cost of qualified new clean-fuel vehicle
Incremental cost of an electric vehicle means the excess of
property can be claimed as a credit. The property must be
the cost of an electric vehicle over the cost of a
installed in or manufactured as a part of a vehicle placed in
gasoline-powered vehicle that is similar in size and style.
service during the taxable year and registered in New York
Motor vehicle means any vehicle that is manufactured
State.
primarily for use on public streets, roads and highways, and
The maximum credit is $5,000 for a vehicle with a gross
that has at least four wheels. It does not include a vehicle
vehicle weight rating of 14,000 pounds or less, and $10,000
operated exclusively on a rail or rails.
for all other vehicles. In the case of a retrofit of an existing
vehicle, the cost of the property includes the cost of
Clean fuel means natural gas, liquefied petroleum gas,
installation.
hydrogen, and electricity. It also means any other fuel that

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