Instruction For Form Ct-40- Claim For Alternative Fuels Credit (Page 2 of 4) in pdf

Page 2 CT-40-I (8/99)

Qualified clean-fuel vehicle property is defined by section 179A(c)

Line 3 – (Article 9-A filers only) Enter the amount of alternative

of the IRC. This property includes the engine, exhaust components,

fuels credit that you elected to receive from an affiliated

and fuel storage and delivery components that enable the vehicle to

corporation. The affiliate you receive the credit from must also be

use clean-fuel either in the retrofit of an existing vehicle or in a

an Article 9-A taxpayer and must consent to transferring the credit

manufacturer’s original equipment vehicle. However, qualified

(see Section VI).

clean-fuel vehicle property does not include any qualified electric

Line 5 – For corporations taxable under sections 183 and 184 of

vehicle. The original use must commence with the taxpayer and the

Article 9, the credit used is first applied against the tax imposed

vehicle must be acquired for use by the taxpayer, and not for resale.

under section 183. It may not reduce the tax under section 183

In the case of a vehicle originally manufactured to use clean fuel

below the minimum tax of $75. Any excess is then applied against

and any other fuel, only the cost of the clean-fuel vehicle property

(engine, exhaust components, and fuel storage and delivery

components) that enables the vehicle to use clean fuel is included

Worksheet for Line 5

in the cost.

Use this worksheet to compute the

credit allowed for the current tax year.

Qualified clean-fuel vehicle refueling property is defined by

section 179A(d) of the IRC. This includes property, other than

Enter your franchise tax before credits from the following forms:

buildings and structural components of buildings, that is used for

Form CT-3 ................. line 78

storing or dispensing clean fuel into the tank of a motor vehicle

Form CT-3-A ............. line 77

Form CT-183/184 ...... CT-183, line 4 plus CT-184, line 3 or 4

Form CT-185 ............. line 6

property must be located at the point where the vehicles are

Form CT-186 ............. line 5

refueled or recharged. It must be eligible for the depreciation

deduction, and the original use must commence with the taxpayer.

Enter any other credits used this tax period

Subtract line b from line a (if line b is greater than line a

Leased property

enter “0”)

Taxpayers that acquire vehicles or property for use in their leasing

business, and not for resale, may qualify for the New York State

Enter the appropriate amount for the form you are filing:

credit if the vehicles or property qualify for a federal credit or

Form CT-3 ................. amount from line 71 or line 74,

deduction. In addition, for tax years beginning in 2000 and 2001, a

whichever is larger

Form CT-3-A ............. amount from line 71 or line 74,

credit will be allowed for electric vehicles manufactured in

whichever is larger

New York State or clean-fuel vehicle property which is installed in

Form CT-183/184 ...... $75

or manufactured as a part of a motor vehicle in New York State

Form CT-185 ............. $10

Form CT-186 ............. $125

where these vehicles are sold or first leased to a governmental unit.

A governmental unit means the United States, any state or political

Subtract line d from line c

subdivision thereof, any possession of the United States, or any

The amount of the credit used may not exceed the lesser of the amount on line e

agency or instrumentality of any of the foregoing.

above, or the amount from line 4 of Form CT-40. Enter the amount of the credit

used on line 5.

In order to be eligible for the credit on these vehicles and property,

the taxpayer must execute a written contract with a governmental

the tax imposed by section 184. For section 185 and 186 filers, the

unit for the sale or lease of the vehicles on or before 12/31/99. In

credit used may not reduce the tax below the minimum tax of $10

addition, as the result of the production, manufacture, or

or $125 respectively.

installation activities relating to these vehicles, at least twenty-five

For corporations taxable under Article 9-A, the credit used may not

new full-time jobs (excluding those of general executive officers)

reduce the tax below the alternative minimum tax or the fixed

must be created in New York State.

dollar minimum tax, whichever is higher.

Specific instructions

Line 7 – Enter the amount of alternative fuels credit that you elect

If you are a calendar-year filer, enter your calendar year in the box

to transfer to an affiliated corporation. The affiliate you are

in the upper right corner on the front of the form.

transferring the credit to must be an Article 9-A taxpayer and must

consent to receiving the credit (see Section VI).

If you are a fiscal-year filer, complete the beginning and ending tax

period boxes in the upper right corner on the front of the form.

Section I - Credit for electric vehicles

Credit summary information

Line 11 – Enter the incremental cost of each qualified electric

vehicle that is placed in service during the taxable year and

Before completing this section, complete Sections I through IV to

registered in New York State, and for which a federal credit is

compute the amount of credit allowed. Complete Section V to

allowed under section 30 of the IRC. If you are eligible for the

recapture credit previously allowed and Section VI if you are

federal credit and elect not to claim it, you may still claim the New

transferring any credit between affiliates.

York State credit.

Instruction For Form Ct-40- Claim For Alternative Fuels Credit Page 2

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