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Attention KANSANS! Tax Warning...

Discussion in 'Gen 2 Prius Main Forum' started by brandon, Oct 10, 2005.

  1. kpauley

    kpauley New Member

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    Yes, maggieddd hit where I was going. The way I read this (I'm not a laywer, but I read a lot of contracts :) the "intent" of this credit is to encourage the use of vehicles that do not use gasoline.

    Convert your Prius to run on Propane instead of Gas, then you have something!

    Seriously though, they probably should have explicitly excluded Hybrid vehicles in their wording to be safe, but I really believe their intent was just that. If this truly was their intent, then they should treat everyone fairly and revoke the credits that were already given. If they intended to include Hybrids, then there should be a credit coming your way. I don't see anything about limiting the number of credits that are handed out (like they are limiting the carpool stickers in California).

    I guess we'll eventually find out if you end up taking it further though!
     
  2. daveke

    daveke New Member

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    As I read it the Prius wouldn't qualify. It's to bad it doesn't take into consideration the regenerative electric side of Hybrid technology.

    I see my engine recharging my batteries almost as often as the regeneration takes place so it would be a hard call.

    Then again, in Arizona they tried to give a credit to modified vehicles that could use natural gas so the dealers would plugged a 2 gallon tank on and made it so you could run both. So, they never filled the tanks...after all, how far you going to go on 2 gallons? Some bought vehicles as large as motor homes before the state paniced and shut down the offer. Arizona didn't even consider a cap on the offer - almost put the state out of business. Those folks are still driving around with alt fuel plates but never use anything but gas. And, they get to drive in the HOV lanes here. Some of them complain that they don't want to be forced to have the alt fuel plates because people are flipping them off all the time. Wonder why?

    I'd love to see tax credits based on how clean a vehicle is and not what powers it.

    But, as long as we have an oil man running the country....nope, not going there.
     
  3. jayselle

    jayselle Member

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    What gets me is they are giving the credit for using other fuels that still put out twice as much pollution than the Prius does. If the idea is to provide an incentive for people to use cleaner burning vehicles then they are failing.
     
  4. dawall

    dawall New Member

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    Off topic

    Haven't thought of Salina, KS in decades. My father was stationed at Schilling AFB and we were there from 59-65. I imagine Salina has changed a wee bit in forty years. Great photo gallery BTW.

    Dan
     
  5. brandon

    brandon Member

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    But that's not what the document says, maggieddd. It explicitly states:
    To me, that is the epitome of the hybrid concept. And they define electricity as a form of alternative fuel, so I don't understand why the credit is being denied.

    As far as intent goes... the road to you-know-where was paved with it. The intent of a law (specifically tax law), when in conflict, may only be determined by a supreme court; otherwise, it is to be executed by the letter of the law. The only people who factually know the intent of the credit are those who created it. The Kansas Department of Revenue has no authority to determine intent. Yes, this may go to court, if for no other reason than to make a point!

    These are all excellent perspectives, but you haven't persuaded me yet... :)
     
  6. brandon

    brandon Member

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    Yeah, it's expanded quite a bit over the past few years. By no means a "metropolis," but certainly a healthy Kansas town. I think the two interstates (I-70 and I-135) have helped it out.
     
  7. brandon

    brandon Member

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    My sentiments exactly! Mind if I borrow the quote for my next letter to the state?
     
  8. maggieddd

    maggieddd Senior Member

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    Brandon,
    I didn't read that part. If that's what they say than you should fight for your credit.
     
  9. brandon

    brandon Member

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    But you've also got a point, maggieddd. The "other" document (the web page), mentions nothing about what is considered an alternative-fuel vehicle. Probably just an oversight, but nonetheless, it invites confusion because the information isn't all in one place or isn't complete in all places. Frustrating...
     
  10. naterprius

    naterprius Senior Member

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    The Prius is an Electrically (partially) PROPELLED car that is entirely gasoline powered. If you plugged it in, it would be an electrically POWERED car. The Prius gets ALL of its energy from gasoline. Period. It's not an alternative fuel vehicle. You can't ignore the fact that the electricity comes from gasoline, and regen braking doesn't count, because you got the car moving using gasoline, or using electricity generated by the engine. Nothing is free.

    Nate
     
  11. brandon

    brandon Member

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    ... And the electricity that you would use when it is plugged is comes from oil or coal... your argument simply doesn't apply.

    1. The Prius does NOT get all of its energy from gasoline. Remember regenerative braking? I agree, energy gained comes from energy spent, but regenerative braking gains energy not from gasoline, but rather from energy that would otherwise be lost as heat from the braking process.

    2. Where did the idea of a "propelled" car come from? What is the difference between a "propelled car" and a "powered car" as it relates to the source of energy the car uses? In the case of the Prius or any other hybrid, gasoline and electricity are performing the same functions - propelling the car.

    3. The assertion that it matters how the electricity is generated is irrelevant. If oil companies and refineries used equipment powered by hydrogen to make unleaded gasoline, the end product would still be gasoline, not hydrogen or another alternative energy source. Likewise, if the electricity placed in the battery came from a gasoline engine, the end product is still electricity, not gasoline. The source of energy before conversion is irrelevant to the question of the end product being an alternative fuel.
     
  12. naterprius

    naterprius Senior Member

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    What matters is how you put energy into the car. In the Prius' case, it is only liquid chemical stored energy in the form of gasoline. When there is a charging cord to plug your Prius into an outlet, then it becomes an electrically powered car. Until that day, it is gasoline powered. You should come to terms with this; it will help you understand why we need the plug in hybrid so badly.

    Gasoline cannot be made from hydrogen. It can't be done.

    Also, most of the energy in the Prius battery comes directly from power generated from the engine, very little comes from the regen.

    You can talk about how the car is powered by electricity, but it is not. You can't draw a line of demarcation around the car for one conversation about energy source and then draw it around another point (the internal battery or the refinery) for another conversation. If the line of demarcation surrounds the Prius, and the question is, how do you fuel this thing, the answer is gasoline, and only gasoline. Gasoline is not an alternative fuel. When the state of Kansas talks about alternative fueled vehicles, the line surrounds the vehicle, and there you are, with a gasoline pump in your hand, it's the only energy crossing that line into the system. The state is right on this one.

    Nate
     
  13. kpauley

    kpauley New Member

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    Brandon, you had a quote of:
    "A qualified alternative-fueled motor vehicle is one that operates on an alternative fuel, meets or exceeds the clean fuel vehicle standards in the federal clean air act amendments of 1990, Title II, and is one of the following:

    Bi-fuel motor vehicle - A motor vehicle with two separate fuel systems designed to run on either an alternative fuel or conventional fuel..."

    Which document did that come from? I had previously posted a link to the Kansas Tax Credit document (http://www.ksrevenue.org/taxcredits-altfuel.htm) and you had posted the form as well. I don't see the term "bi-fuel" in either of those forms. Did I miss one?

    Interesting note is that the form is dated 6/2004. But if you look at the posted tax credit description, it went in effect for all tax years after 12/1995. This is before the Prius, so it may explain why it was not in the document as being excluded and further enforces the intent I think.

    Ken
     
  14. Tempus

    Tempus Senior Member

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  15. brandon

    brandon Member

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    Again, I'd like you to back that statement up. Where in the statute/credit form does it state that "alternative fuel" is defined by the way in which it was manufactured?
    I agree with half of that. We shouldn't even be discussing the manner in which the electricity is made or stored. It's irrelevant to the two types of energy which actually power the car. That's why it's called a "gas-electric" hybrid. The battery does not contain gasoline, my friend. Likewise, the fuel bladder had better not contain electricity! There are two separate types of fuel, one of which is an alternative fuel as defined by the K-62, that work in concert to power the car. This is not a confounding philosophical question concerning the "origin of battery power."
     
  16. brandon

    brandon Member

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    kpauley,

    The "bi-fuel" explanation is found in the PDF form within the directions. Without looking, I think it's on the third page.

    And yes, I think the form is in need of update and clarification. Their own employees obviously can't interpret how it relates to today's technology, granting the credit to some but not others. But again, tax law is not judged in Kansas by "legal intent." ... or at least it shoudn't be. The framers of the credit knew nothing of the technology as it did not exist at the time, so there is nothing on which to base the framer's "intent."

    You're right - if they don't want people to legitimately claim this credit for hybrid vehicles, they should change the form.
     
  17. brandon

    brandon Member

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    Tempus,

    Kansas and the feds define "alternative fuel vehicle" quite differently. The feds are more explicit, assigning labels such as "Advanced Technology" and "HEV" as you point out. Kansas lumps it all together under "alternative fuel vehicle." They have no other categories. I suppose that's how it was easier to obtain the federal tax incentive.
     
  18. kpauley

    kpauley New Member

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    Sorry, must have missed the bi-fuel piece on the form. If it's on the form, but not on the original credit wording, then maybe they did update parts of it to cover, seems like a mess.

    Maybe one person is looking at the form and approving things, another is looking at the credit wording and denying!

    In any case, if it is a struggle for you to convince a lot of people on this Pro-Prius forum that it should get the credit, I'm thinking convincing the local goverment will be more difficult!

    Best of luck, let us know how it all works out...

    Ken
     
  19. brandon

    brandon Member

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    Thanks for the good wishes, Ken.

    It certainly is a Grade-A mess - no argument there! :lol:

    An informal hearing has been arranged, to be held in a few weeks. Maybe it will help everyone get on the same page. I'll post an update here. I'd be happy even if the state came out of the meeting just realizing that they need to provide incentives for people to adopt current and future fuel-efficient and environmentally-friendly technologies. Kansas has way too many roads and far too many air quality concerns to ignore this topic.

    It does concern me that some of the Prius brethren do not believe that the Prius's battery/electric power is not a source of alternative fuel. I don't know whether it's a matter of philosophy, semantics, or whatnot, but in general the feedback has helped me prepare for potential questions by the state. 'Tis better to have one's "ducks in a row," so to speak.
     
  20. naterprius

    naterprius Senior Member

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    The Prius is fueled by gasoline only. When you go fuel your Prius, what do you do? You pump gasoline. You should consider the thermodynamics of a system. Ask any high school chemistry teacher and they'll explain to you that the only way to add energy to the system (in this case, the system is a Prius) is via gasoline or towing it up a hill. This is very, very important to understand. If you plug it into a wall, that is a seperate fuel source, in your example, electricity via coal.

    I am not arguing that I think coal from electricity is better, only it represents an alternative fuel. Even ethanol in the tank would be alternative fuel, something other than gasoline adding energy to the system.

    It is not a question of philosophy, it is a question of science, in particular, thermodynamics.

    The Prius is nothing more than a very efficient gasoline powered car. In fact, the less regening you do, and the more you cruise (at a constant load) with the gasoline engine ON, the HIGHER your MPG! Why? Energy is wasted going into the battery. That's right, the energy that goes into the battery is more wasteful than if that energy goes out to the wheels.

    The day you plug in your Prius is the day it becomes an alternative fuel vehicle. Until then, I predict you will be buying gasoline.

    Nate