Massachusetts tax changes for hybrids?

I had not heard that yet... but am giddy at the notion

Where did you catch wind of it to begin with?

 

<div class='quotetop'>QUOTE(theorist @ Jul 10 2006, 01:29 PM) [snapback]283916[/snapback]</div>

http://priuschat.com/index.php?showtopic=20248&hl=

Massachusetts
Emissions and Maintenance Inspection Program Exemption (bill): SB 1380 allows exemptions from the emissions and maintenance inspection programs for any qualified hybrid motor vehicle or clean alternative fuel if such vehicle obtains a rating from the U.S. Environmental Protection Agency of at least 50 miles per gallon during city fuel economy tests unless remote sensing devices indicate the hybrid vehicle or clean alternative fuel vehicle may not meet current emissions standards. Introduced 3/22/05, Reported favorably by the Senate Public Safety and Homeland Security Committee and referred to the Senate Ways and Means Committee 9/20/05.

Promotion of Alternative Fuels and Hybrid vehicles (bill): S.B. 2220. For the years 2006-2010, individuals that purchase a hybrid or alternative fuel vehicle, which can be powered by ethanol, low-sulfur diesel, compressed natural gas, liquefied natural gas, and hydrogen will register for a special placard and receive a number of incentives, including: an income tax deduction of $2000; a waiver for the initial $27.50 application fee for the Fast Lane Transponder; waiver of emissions inspections for hybrids getting at least an EPA-estimated 50mpg city; right to travel in HOV lanes regardless of passengers for three years following the enactment of the bill; discounts or free parking in municipalities which choose to participate.

The bill will require that five percent of all new state agency "fleet vehicles" be hybrids or run on alternative fuel, with 50 percent of the state fleet reliant on alternative fuels by 2010. A $10 million bond would establish a fund controlled by the Division of Energy Resources to assist municipalities and regional transit authorities in building alternative fuel stations on public lands and acquiring alternative fuel vehicles or hybrids.

Corporations with fleets of more than 50 comprised of at least 10 percent alternative fuel vehicles would receive a tax credit of half the difference in price between those vehicles and their conventional gasoline counterparts. Update: This bill, originally S. 2176, was revised several times and finally passed by the Senate on a 38-0 vote on 9/29/05, and discharged to the House Rules Committee on 10/26/05.

State Hybrid HOV (proposal): Officials of the Commonwealth’s transportation and environmental agencies, are considering permitting hybrid vehicles to be permitted regardless of number of passengers on the movable six-mile zipper lane on the Southeast Expressway during morning and evening rush hour, and the 2-mile high-occupancy lane on Interstate 93 southbound from Somerville to the Leonard P. Zakim Bunker Hill Bridge.

 

Thanks. I found the ammendment. Looks like the deducation is like the feds... only year purchased:

For taxable years beginning on or after January 1, 2006, in the case of an individual who purchases a hybrid or alternative fuel vehicle, as those terms are defined in section 3 of chapter 25A, there shall be a deduction in the amount of $2,000 for a single person, for a person who qualifies as a head of household under section 2(B) of the Code or for a husband and wife in the taxable year in which the purchase is made. The department of revenue may require a proof of purchase to be submitted with a return in order to be eligible for the deduction.

 

<div class='quotetop'>QUOTE(jimgraffam @ Jul 11 2006, 07:48 AM) [snapback]284371[/snapback]</div>

Well, it's just the continuation of the old MA tax deduction, that allowed you to take the $2000 Clean Fueled Vehicle deduction if you took it on your US Federal taxes. That was for tax years up to/including 2005.

http://www.dor.state.ma.us/help/guides/aba...es/miscyded.htm

Since the new US federal hybrid vehicle credit for purchases in 2006 tends to be worth more than the deduction, and you can only take one or the other, taking the credit in 2006 means that you cannot take the deduction in MA...

These other hybrid-related bills were posted last year... But I haven't heard of any movement on them.
http://autos.groups.yahoo.com/group/MA-hybrids/message/279

 

<div class='quotetop'>QUOTE(Guest @ Jul 25 2006, 03:59 PM) [snapback]292144[/snapback]</div>

<grr> forgot to login...

 

Thanks for the update!

 

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So, what you all are saying is that, hypothetically, let's say I bought a 2006 Prius in MA, and my taxes are all paid and up-to-date so I can't take full advantage of the NON-REFUNDABLE $3,150 tax credit... I could elect to get the $2,000 deduction instead and possibly increase my refund, rather than get $0 benefit from the credit?

If that's the case then, hypothetically, I'll be very happy

 

<div class='quotetop'>QUOTE(Ichabod @ Jul 26 2006, 04:37 PM) [snapback]292743[/snapback]</div>

Unfortunately, on further reading, the US federal hybrid vehicle income tax credit REPLACES the US federal clean fueled vehicle income tax deduction...

http://www.irs.gov/newsroom/article/0,,id=157632,00.html

http://www.irs.gov/newsroom/article/0,,id=157557,00.html

So, since you cannot claim the Clean Fueled Vehicle deduction on your US Federal Income taxes on years after 2005, I guess that you cannot claim the deduction on your MA taxes for years after 2005 anymore. (If you purchased your Prius up to and including Dec. 31, 2005, you could take the deduction on both state and federal, though.)

 

I guess I'll have to ask my accountant about ways to carefully under-pay my taxes by approximately $3,150 then!