Instruction For Form Ct-40- Claim For Alternative Fuels Credit (Page 3 of 4) in pdf

CT-40-I (8/99) Page 3

The credit is computed on the entire incremental cost, even if some

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

or all of the cost was expensed under section 179 of the IRC. The

and knows or has reason to know that the vehicle will be

maximum credit is $5,000 per electric vehicle.

converted to nonqualified use.

Section II - Credit for clean-fuel vehicle

The portion of credit to be recaptured on electric vehicles is as

follows:

property

•

The credit for clean-fuel vehicle property is computed on the entire

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

cost. The cost is not limited by the federal expense limits of IRC

after the date the vehicle is placed in service.

section 179A (b) (1), and the credit may be allowed even if some or

•

66b% if the vehicle ceases to qualify within the second full

all of the cost was expensed under IRC section 179. In the case of a

year after the date the vehicle is placed in service.

retrofit of an existing vehicle, the cost of the property includes the

•

cost of installation.

33a% if the vehicle ceases to qualify within the third full year

after the date the vehicle is placed in service.

Part A - Vehicles with a gross vehicle weight of

Recapture is required if clean-fuel vehicle property ceases to

14,000 pounds or less

qualify.

Line 16 – Enter the cost of qualified new clean-fuel vehicle

property which is installed in or manufactured as part of a motor

Clean-fuel vehicle property ceases to qualify if:

vehicle placed in service during this tax year, and registered in New

(1) the vehicle of which it is a part is modified so that it may no

York State, for which a federal deduction is allowed under section

longer be propelled by a clean burning fuel; or,

179A of the IRC.

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

Part B - Vehicles with a gross vehicle weight of

179A(c) of the IRC; or

more than 14,000 pounds

Line 21 – Enter the cost of qualified new clean-fuel vehicle

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

property which is installed in or manufactured as part of a vehicle

and knows or has reason to know that the vehicle will be used in

placed in service during this tax year, and registered in New York

a manner described in (1) or (2) above.

State, for which a federal deduction is allowed under section 179A

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

of the IRC.

property is as follows:

Section III - Credit for clean-fuel vehicle

•

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

refueling property

after the date the vehicle is placed in service.

Line 26 – Enter the cost of qualified clean-fuel vehicle refueling

•

66b% if the property ceases to qualify within the second full

property placed in service in New York State during the tax year for

year after the date the vehicle is placed in service.

which a deduction is allowed under section 179A of the IRC.

•

33a% if the property ceases to qualify within the third full year

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

after the date the vehicle is placed in service.

expense limits of IRC section 179A(b)(2), and the credit may be

allowed even if some or all of the cost is expensed under IRC

Part B - Computation of credit recapture on

section 179.

clean-fuel vehicle refueling property

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

Section V- Recapture of credit

was originally allowed. Enter in column B the total recovery period

(depreciable life) of the property. In column C, enter the number of

Part A - Computation of credit recapture on

years the property was in service prior to the recapture year.

electric vehicles and clean-fuel vehicle

property

To compute the recapture percentage in column E, divide column D

If recapture is required, enter the year the credit was originally

by column B. To compute the credit recapture amount in column G,

allowed in column A and the amount of credit allowed in column B.

enter the original credit allowed in column F and multiply it by the

In column C, enter the appropriate recapture percentage (100%,

column E recapture percentage.

66b%, or 33a%) from those listed below. To compute the

Recapture is required if clean-fuel vehicle refueling property

recapture, multiply column B by column C and enter the product in

ceases to qualify at any time before the end of its recovery period

column D.

(depreciable life).

Recapture is required if an electric vehicle is disposed of or

Clean-fuel vehicle refueling property ceases to qualify if:

modified within three years of the date it is placed in service so that

it is no longer a qualified vehicle.

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

section 179A(d) of the IRC;

An electric vehicle ceases to qualify if:

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

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

than in a trade or business in New York State; or

primarily by electricity; or

Instruction For Form Ct-40- Claim For Alternative Fuels Credit Page 3

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