HB 140 CLEAN CAR INCOME TAX CREDIT

Rep Dayan Hochman-Vigil

Actions: [2] HENRC/HTRC-HENRC [3] DP-HTRC

Scheduled: Not Scheduled

 House Bill 140 (HB 140) creates personal and corporate tax credits for car charging units and new, used, or leased electric, plug-in hybrid, and fuel cell cars. HB 140 repeals the credits in 2030. 

 House Bill 140 (HB 140) creates four new tax credits: the Clean Car Income Tax Credit, Clean Car Corporate Income Tax Credit, Clean Car Charging Unit Income Tax Credit, and Clean Car Charging Unit Corporate Income Tax Credit. The credits are available on qualifying purchases made by the end of 2029. Credits exceeding taxpayers’ liability are refundable.

Taxpayers who purchase an electric, plug-in hybrid, or fuel cell cars or enters into a new lease for a minimum of three years may claim a vehicle credit in Tax Years 2024 through 2026 (TY24-26) in the amount of $3,000 for a new electric car and $2,000 for a hybrid or fuel cell car. Credits for used cars is 50% less. In TY27, the credits decrease to $2,220 and $1,480. In TY28 $1,470 and $980 and TY29 $960 and $640. 

Used cars must be at least two years old to qualify and have a market value of no more than $25,000. New vehicles must cost at least $55,000. 

Taxpayers purchasing charging units installed in the state may be eligible for a credit: the less of $25,000 or cost and installation of a direct current fast charger or fuel cell charger and $400 for all others. Taxpayers claiming the 2021 Sustainable Building Tax Credit for charging units are not eligible for car charging credits.

The Energy, Minerals, and Natural Resources Department will administer the credits and provide the Taxation and Revenue Department with information on the credits. 

HB 140 is effective and apply to TYs beginning January 1, 2024.