By Ogden                                              H.B. No. 2482
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to a franchise tax credit for the conversion or purchase
    1-3  of an alternative fuel motor vehicle.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter A, Chapter 171, Tax Code, is amended
    1-6  by adding Section 171.0022 to read as follows:
    1-7        Sec. 171.0022.  CREDIT FOR CONVERSION OR PURCHASE OF
    1-8  ALTERNATIVE FUEL MOTOR VEHICLE.  (a)  A corporation that purchases
    1-9  a motor vehicle powered exclusively by natural gas or liquefied
   1-10  petroleum gas or that converts a motor vehicle so that it is
   1-11  powered exclusively by natural gas or liquefied petroleum gas may
   1-12  take a credit for the vehicle purchased or converted in an amount
   1-13  allowed by this section on the tax due under this chapter.
   1-14        (b)  The amount of the credit allowed under this section for
   1-15  each motor vehicle is equal to:
   1-16              (1)  for a purchase, $1500; and
   1-17              (2)  for a conversion, the lesser of $1500 or the
   1-18  actual conversion cost.
   1-19        (c)  The corporation may claim the credit on the first report
   1-20  due covering the business period during which the motor vehicle is
   1-21  purchased or converted.
   1-22        (d)  A corporation may not claim for a privilege period a
   1-23  credit in an amount that exceeds an amount equal to 50 percent of
    2-1  the tax due by the corporation for that privilege period.  A
    2-2  corporation may carry the amount of unused credit forward for not
    2-3  more than three consecutive privilege periods.  For purposes of
    2-4  this section, an initial period and a second period are considered
    2-5  one privilege period.
    2-6        (e)  A corporation may not convey, assign, or transfer the
    2-7  credit allowed under this section to another entity unless all of
    2-8  the assets of the corporation are conveyed, assigned, or
    2-9  transferred in the same transaction.
   2-10        (f)  The corporation must provide to the comptroller any
   2-11  information the comptroller requires to determine the validity of
   2-12  the credit claim.
   2-13        SECTION 2.  This Act applies to reports originally due on or
   2-14  after January 1, 1994.
   2-15        SECTION 3.  The importance of this legislation and the
   2-16  crowded condition of the calendars in both houses create an
   2-17  emergency and an imperative public necessity that the
   2-18  constitutional rule requiring bills to be read on three several
   2-19  days in each house be suspended, and this rule is hereby suspended,
   2-20  and that this Act take effect and be in force from and after its
   2-21  passage, and it is so enacted.