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CT-40-I (8/98) Page 3

expense limits of IRC section 179A (b) (1), and the credit

The portion of credit to be recaptured on electric vehicles is

may be allowed even if some or all of the cost was

as follows:

expensed under IRC section 179. In the case of a retroﬁt of

● 100% if the vehicle ceases to qualify within the ﬁrst full

an existing vehicle, the cost of the property includes the

year after the date the vehicle is placed in service.

cost of installation.

● 66

⁄

% if the vehicle ceases to qualify within the second

full year after the date the vehicle is placed in service.

Part A - Vehicles with a gross vehicle weight of

● 33

⁄

% if the vehicle ceases to qualify within the third full

14,000 pounds or less

year after the date the vehicle is placed in service.

Line 15 - Enter the cost of qualiﬁed new clean-fuel vehicle

Recapture is required if clean-fuel vehicle property

property which is installed in or manufactured as part of a

ceases to qualify.

motor vehicle placed in service during this tax year, and

registered in New York State, for which a federal deduction

Clean-fuel vehicle property ceases to qualify if:

is allowed under section 179A of the IRC.

(1) the vehicle of which it is a part is modiﬁed so that it

may no longer be propelled by a clean burning fuel; or,

Part B - Vehicles with a gross vehicle weight of

(2) the vehicle ceases to qualify as property deﬁned in

more than 14,000 pounds

section 179A(c) of the IRC; or

Line 20 - Enter the cost of qualiﬁed new clean-fuel vehicle

(3) the taxpayer receiving the credit sells or disposes of the

property which is installed in or manufactured as part of a

vehicle and knows or has reason to know that the

vehicle placed in service during this tax year, and

vehicle will be used in a manner described in (1) or (2)

registered in New York State, for which a federal deduction

above.

is allowed under section 179A of the IRC.

The portion of the credit to be recaptured on clean-fuel

vehicle property is as follows:

Section III - Credit for Clean-Fuel Vehicle

● 100% if the property ceases to qualify within the ﬁrst full

Refueling Property

year after the date the vehicle is placed in service.

Line 25 - Enter the cost of qualiﬁed clean-fuel vehicle

● 66

⁄

% if the property ceases to qualify within the

refueling property placed in service in New York State

second full year after the date the vehicle is placed in

during the tax year for which a deduction is allowed under

service.

section 179A of the IRC.

● 33

⁄

% if the property ceases to qualify within the third

full year after the date the vehicle is placed in service.

For New York State purposes, the cost is not limited by the

federal expense limits of IRC section 179A(b)(2), and the

Part B - Computation of Credit Recapture on

credit may be allowed even if some or all of the cost is

Clean-Fuel Vehicle Refueling Property

expensed under IRC section 179.

If recapture is required, enter in column A the tax year the

credit was originally allowed. Enter in column B the total

Section V - Recapture of Credit

recovery period (depreciable life) of the property. In column

C, enter the number of years the property was in service

prior to the recapture year.

Part A - Computation of Credit Recapture on

Electric Vehicles and Clean-Fuel Vehicle

To compute the recapture percentage in column E, divide

Property

column D by column B. To compute the credit recapture

amount in column G, enter the original credit allowed in

If recapture is required, enter the year the credit was

column F and multiply it by the column E recapture

originally allowed in column A and the amount of credit

percentage.

allowed in column B. In column C, enter the appropriate

recapture percentage (100%, 66

⁄

%, or 33

⁄

%) from those

Recapture is required if clean-fuel vehicle refueling

listed below. To compute the recapture, multiply column B

property ceases to qualify at any time before the end of its

by column C and enter the product in column D.

recovery period (depreciable life).

Recapture is required if an electric vehicle is disposed of

Clean-fuel vehicle refueling property ceases to qualify if:

or modiﬁed within three years of the date it is placed in

(1) the property no longer qualiﬁes as property described in

service so that it is no longer a qualiﬁed vehicle.

section 179A(d) of the IRC;

(2) 50% or more of the use of the property in a taxable

An electric vehicle ceases to qualify if:

year is other than in a trade or business in New York

(1) it is modiﬁed by the taxpayer so that it is no longer

State; or

powered primarily by electricity; or

(3) the taxpayer receiving the credit sells or disposes of the

(2) the taxpayer receiving the credit sells or disposes of the

property and knows or has reason to know that the

vehicle and knows or has reason to know that the

property will be used in a manner described in (1) or (2)

vehicle will be converted to nonqualiﬁed use.

above.

Form Ct-40-I - Instructions For Form Ct-40 - New York State Department Of Taxation And Finance Page 3

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