By Hope H.B. No. 802
77R165 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to incentives for the sale, purchase, or use of certain
1-3 vehicles.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter E, Chapter 152, Tax Code, is amended
1-6 by adding Section 152.094 to read as follows:
1-7 Sec. 152.094. CLEAN-AIR MOTOR VEHICLES. (a) In this
1-8 section:
1-9 (1) "Alternative fuel" means a fuel or power source,
1-10 other than gasoline or conventional diesel fuel, that can be used
1-11 to power a motor vehicle. The term includes electricity,
1-12 compressed natural gas, liquefied petroleum gas, liquefied
1-13 hydrogen, biodiesel fuel, solar power, and ethanol.
1-14 (2) "Passenger car" has the meaning assigned by
1-15 Section 502.001, Transportation Code.
1-16 (b) A purchaser is entitled to a credit against the tax
1-17 imposed by this chapter on the sale or use of a motor vehicle that:
1-18 (1) is a new motor vehicle;
1-19 (2) is a passenger car;
1-20 (3) is manufactured to be powered by, and is powered
1-21 by, an alternative fuel either exclusively or interchangeably or in
1-22 combination with gasoline or conventional diesel fuel, but not as
1-23 an additive or mixture to gasoline or conventional diesel fuel; and
1-24 (4) is capable of achieving an estimated average fuel
2-1 economy standard of not less than 45 miles per gallon of gasoline
2-2 or conventional diesel fuel, or an equivalent petroleum-based fuel
2-3 economy standard as measured, reported, published, or accepted by
2-4 the United States Environmental Protection Agency.
2-5 (c) The amount of the credit is equal to the lesser of:
2-6 (1) $2,000; or
2-7 (2) the total amount of the tax imposed by this
2-8 chapter on the sale or use of the motor vehicle.
2-9 (d) This section expires September 30, 2005.
2-10 SECTION 2. Chapter 171, Tax Code, is amended by adding
2-11 Subchapter S to read as follows:
2-12 SUBCHAPTER S. TAX CREDIT FOR SALE OF CLEAN-AIR MOTOR VEHICLES
2-13 Sec. 171.851. DEFINITIONS. In this subchapter, "franchised
2-14 dealer," "new motor vehicle," and "retail sale" have the meanings
2-15 assigned by Section 152.001.
2-16 Sec. 171.852. ELIGIBILITY. A corporation is eligible for a
2-17 credit against the tax imposed under this chapter in the amount and
2-18 under the conditions and limitations provided by this subchapter.
2-19 Sec. 171.853. RETAIL SALES ELIGIBLE FOR CREDIT. A
2-20 corporation may claim a credit under this subchapter only if:
2-21 (1) the corporation is a franchised dealer;
2-22 (2) the corporation makes a retail sale in this state
2-23 of a new motor vehicle described by Section 152.094(b); and
2-24 (3) the corporation provides to the purchaser of the
2-25 new motor vehicle at the time of the retail sale a rebate,
2-26 discount, or other financial adjustment equal to at least $1,000.
2-27 Sec. 171.854. AMOUNT; LIMITATIONS. (a) The amount of the
3-1 credit is equal to $1,500 for each retail sale of a new motor
3-2 vehicle that meets the requirements prescribed by Section 171.853.
3-3 (b) A corporation may claim a credit under this subchapter
3-4 for a new motor vehicle sold during an accounting period only
3-5 against the tax owed for the corresponding reporting period.
3-6 Sec. 171.855. APPLICATION FOR CREDIT. (a) A corporation
3-7 must apply for a credit under this subchapter on or with the tax
3-8 report for the period for which the credit is claimed.
3-9 (b) The comptroller shall adopt a form for the application
3-10 for the credit. A corporation must use the form in applying for
3-11 the credit.
3-12 Sec. 171.856. ASSIGNMENT PROHIBITED. A corporation may not
3-13 convey, assign, or transfer the credit allowed under this
3-14 subchapter to another entity unless all the assets of the
3-15 corporation are conveyed, assigned, or transferred in the same
3-16 transaction.
3-17 Sec. 171.857. EXPIRATION. This subchapter expires December
3-18 31, 2005.
3-19 SECTION 3. Subchapter D, Chapter 502, Transportation Code,
3-20 is amended by adding Section 502.1615 to read as follows:
3-21 Sec. 502.1615. FEE: CLEAN-AIR VEHICLE. (a) Notwithstanding
3-22 any other provision of this subchapter, the fee for a registration
3-23 year for registration of a motor vehicle described by Sections
3-24 152.094(b)(2)-(4), Tax Code, is:
3-25 (1) the amount prescribed by Section 502.161(a)(3) for
3-26 the initial registration of a new motor vehicle;
3-27 (2) $0 for a vehicle that is not a new motor vehicle
4-1 and the model year of which is six years or less before the year in
4-2 which the registration year begins; or
4-3 (3) the amount prescribed by Section 502.161(a)(1) for
4-4 a vehicle the model year of which is more than six years before the
4-5 year in which the registration year begins.
4-6 (b) Notwithstanding any other provision of this subchapter,
4-7 the department or a county may not impose an additional or other
4-8 fee for registering a motor vehicle that is not required to pay a
4-9 registration fee under this section.
4-10 (c) Section 502.177 does not apply to a motor vehicle to
4-11 which Subsection (a)(2) applies.
4-12 (d) This section does not affect the requirement that a
4-13 motor vehicle be registered annually.
4-14 (e) This section applies only to a new motor vehicle
4-15 purchased on or after September 1, 2001, and expires September 1,
4-16 2005.
4-17 SECTION 4. Subchapter F, Chapter 502, Transportation Code,
4-18 is amended by adding Section 502.2985 to read as follows:
4-19 Sec. 502.2985. CLEAN-AIR VEHICLES. (a) The department
4-20 shall issue specially designed license plates for motor vehicles
4-21 described by Sections 152.094(b)(2)-(4), Tax Code.
4-22 (b) Notwithstanding Section 502.180(f), Section 502.180
4-23 applies to the issuance of license plates and registration
4-24 insignias under this section.
4-25 (c) The department shall issue license plates or a
4-26 registration insignia under this section and shall issue a
4-27 registration receipt to a person who:
5-1 (1) applies to the county assessor-collector of the
5-2 county in which the person resides on a form provided by the
5-3 department;
5-4 (2) pays the appropriate registration fee prescribed
5-5 by Section 502.1615; and
5-6 (3) submits proof that the person is eligible for
5-7 registration under this section.
5-8 (d) If the owner of a vehicle registered under this section
5-9 disposes of the vehicle before the license plates expire, the owner
5-10 shall return the special license plates to the department.
5-11 (e) This section applies only to a new motor vehicle
5-12 purchased on or after September 1, 2001, and expires September 1,
5-13 2005.
5-14 SECTION 5. Subchapter I, Chapter 545, Transportation Code,
5-15 is amended by adding Section 545.424 to read as follows:
5-16 Sec. 545.424. ACCESS TO HIGH OCCUPANCY VEHICLE LANE BY
5-17 CLEAN-AIR VEHICLES. (a) In this section, "high occupancy vehicle
5-18 lane" means a roadway lane that may be used only by a vehicle
5-19 containing a minimum number of occupants.
5-20 (b) A person operating a motor vehicle with license plates
5-21 issued under Section 502.2985 may drive in a high occupancy vehicle
5-22 lane notwithstanding the minimum occupancy requirement.
5-23 (c) This section expires September 1, 2005.
5-24 SECTION 6. Subchapter C, Chapter 548, Transportation Code, is
5-25 amended by adding Section 548.1025 to read as follows:
5-26 Sec. 548.1025. FOUR-YEAR INITIAL INSPECTION PERIOD FOR
5-27 CERTAIN CLEAN-AIR MOTOR VEHICLES. (a) In this section, "new motor
6-1 vehicle" has the meaning assigned by Section 152.001, Tax Code.
6-2 (b) Notwithstanding Section 548.101, the initial inspection
6-3 period is four years for a motor vehicle described by Section
6-4 152.094(b), Tax Code, that is sold in this state.
6-5 (c) This section does not affect a requirement that a motor
6-6 vehicle emission inspection be conducted during an initial
6-7 inspection period in a county covered by an inspection and
6-8 maintenance program approved by the United States Environmental
6-9 Protection Agency under Section 548.301 and the federal Clean Air
6-10 Act (42 U.S.C. Section 7401 et seq.).
6-11 (d) This section expires September 1, 2005.
6-12 SECTION 7. Subchapter H, Chapter 548, Transportation Code, is
6-13 amended by adding Section 548.5035 to read as follows:
6-14 Sec. 548.5035. INITIAL FOUR-YEAR INSPECTION OF CERTAIN
6-15 CLEAN-AIR MOTOR VEHICLES. (a) Notwithstanding Section 548.501, the
6-16 fee for inspection of a passenger car under Section 548.1025 shall
6-17 be set by the department by rule on or before September 1 of each
6-18 year. A fee set by the department under this subsection must be
6-19 based on the costs of producing certificates, providing
6-20 inspections, and administering the program.
6-21 (b) The fee imposed under this section is in addition to the
6-22 fee provided by Section 548.505.
6-23 (c) The department by rule shall require an inspection
6-24 station to make an advance payment of a portion of the fee for a
6-25 certificate to be issued under this section. Additional payment
6-26 may not be required of the station for the certificate. The
6-27 inspection station may waive the fee due from the owner of the
7-1 vehicle inspected. A refund for an unissued certificate shall be
7-2 made in the same manner as provided for other certificate refunds.
7-3 (d) This section expires September 1, 2005.
7-4 SECTION 8. (a) Except as otherwise provided by this
7-5 section, this Act takes effect September 1, 2001, and applies only
7-6 to a new motor vehicle purchased on or after that date. A new
7-7 motor vehicle purchased before that date is governed by the law in
7-8 effect when the new motor vehicle was purchased, and that law is
7-9 continued in effect for that purpose.
7-10 (b) Subchapter S, Chapter 171, Tax Code, as added by this
7-11 Act, takes effect January 1, 2002, and applies only to a report
7-12 originally due on or after that date.