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Connecticut Public Acts 1996

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Senate Bill No. 587

PUBLIC ACT NO. 96-183

AN ACT CONCERNING THE CORPORATION BUSINESS TAX CREDIT ENCOURAGING THE USE OF CLEAN ALTERNATIVE FUEL, THE EXEMPTION FROM THE MOTOR VEHICLE FUELS TAX OF ALTERNATIVE FUELS SOLD TO COVERED FLEETS AND THE EXEMPTION FROM THE PETROLEUM PRODUCTS GROSS EARNINGS TAX OF CERTAIN PRODUCTS IN COMMERCIAL FISHING VESSELS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsection (b) of section 12-217i of the general statutes, as amended by section 1 of public act 95-15, is repealed and the following is substituted in lieu thereof:

(b) There shall be allowed a credit for any taxpayer against the tax imposed by this chapter in any income year commencing on or after January 1, 1994, and prior to January 1, 1999, in an amount equal to fifty per cent of the amount of expenditures, other than those described in subsection (a) of this section, paid or incurred during such income year directly for (1) the construction of any filling station or improvements to any existing filling station in order to provide compressed natural gas, liquified petroleum gas or liquified natural gas; (2) the purchase and installation of conversion equipment incorporated into or used in converting vehicles powered by any other fuel to either exclusive use of clean alternative fuel or dual use of such other fuel and a clean alternative fuel, including, but not limited to, storage cylinders, cylinder brackets, regulated mixers, fill valves, pressure regulators, solenoid valves, fuel gauges, electronic ignitions and alternative fuel delivery lines, if such converted vehicles, after conversion, meet generally accepted standards, including, but not limited to, the standards set by the American Gas Association, the National Fire Protection Association, the American National Standards Institute, the American Society of Testing Materials or the American Society of Mechanical Engineers; or (3) the purchase and installation of equipment incorporated into or used in a compressed natural gas LIQUIFIED PETROLEUM GAS OR LIQUIFIED NATURAL GAS filling or electric recharging station for vehicles powered by a clean alternative fuel, including, but not limited to, compressors, storage cylinders, associated framing, tubing and fittings, valves and fuel poles and fuel delivery lines.

Sec. 2. Section 12-458f of the general statutes is repealed and the following is substituted in lieu thereof:

On and after July 1, 1994, and until July 1, 1999, compressed natural gas, liquefied petroleum gas and liquefied natural gas shall not be subject to the tax imposed under section 12-458m AS AMENDED [provided such fuel is sold to a covered fleet for use in a covered fleet vehicle, as defined in section 241 of the federal Clean Air Act, 42 USC 7581, and any regulations adopted thereunder.]

Sec. 3. Subsection (a) of section 12-587 of the general statutes, as amended by section 3 of public act 95-172, is repealed and the following is substituted in lieu thereof:

(a) As used in this chapter: (1) "Company" includes a corporation, partnership, limited partnership, association, individual or any fiduciary thereof; (2) "quarterly period" means a period of three calendar months commencing on the first day of January, April, July or October and ending on the last day of March, June, September or December, respectively; (3) "gross earnings" means those earnings derived from the first sale within this state of a petroleum product, but does not include earnings in a taxable year commencing prior to January 1, 2000, from the sale of propane gas as a fuel for a motor vehicle and (4) "petroleum products" means those products which contain or are made from petroleum or a petroleum derivative, but shall not mean (A) the product designated by the American Society for Testing and Materials as "Specification for Heating Oil D396-69", commonly known as number 2 heating oil, to be used exclusively for heating purposes OR TO BE USED IN A COMMERCIAL FISHING VESSEL WHICH VESSEL QUALIFIES FOR AN EXEMPTION PURSUANT TO SECTION 12-412 OF THE GENERAL STATUTES, AS AMENDED, (B) kerosene, commonly known as number 1 oil, used exclusively for heating purposes, provided delivery is of both number 1 and number 2 oil, and via a truck with a metered delivery ticket to a residential dwelling or to a centrally metered system serving a group of residential dwellings, (C) the product identified as propane gas to be used exclusively for heating purposes, or (D) bunker fuel oil, intermediate fuel, marine diesel oil and marine gas oil for use in any vessel having a displacement exceeding four thousand dead weight tons.

Sec. 4. This act shall take effect from its passage and section 1 shall be applicable to income years commencing on or after January 1, 1996, and section 2 shall be applicable to calendar quarters commencing on or after July 1, 1996.

Approved May 31, 1996. Effective May 31, 1996, and applicable as provided in section 4.

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