HB1486

SECTION 1. The legislature finds that the use of hybrid and alternative fuel motor vehicles is in the best interest of the State in that it supports fuel efficient technologies, decreases Hawaii's dependence on imported fuel oils, and decreases harmful emissions that contribute to environmental decay and global warming. The purpose of this Act is to provide incentives to purchase and use hybrid and alternative fuel motor vehicles by providing a tax credit for the purchase of these types of vehicles, allowing them to be used in high-occupancy vehicle lanes, and allowing them free metered parking.

SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows

"§235- Hybrid and alternative fuel motor vehicle tax credit. (a) There shall be allowed to each taxpayer subject to the tax imposed by this chapter a one-time tax credit for the purchase of a new or used hybrid or alternative fuel motor vehicle, placed in service after December 31, 2005, and purchased on or before December 31, 2010, that shall be deductible from the taxpayer's net income tax liability imposed by this chapter for the taxable year in which the tax credit is properly claimed; provided that individual taxpayers filing separate returns for a taxable year for which a joint return could have been filed by them shall claim only the tax credit to which they would have been entitled had a joint return been filed.

(b) The maximum allowable tax credit shall be $1,500; provided that no refund or payment on account of the tax credit allowed by this section shall be made for amounts less than $1.

(c) To qualify for the income tax credit, the taxpayer shall provide adequate proof, as determined by the department, of purchase of a hybrid or alternative fuel motor vehicle and any other required costs or information necessary to claim a tax credit under this section.

(d) A tax credit under this section that exceeds the taxpayer's net income tax liability may be used as a credit against the taxpayer's income tax liability in subsequent taxable years until exhausted.

(e) All claims, including amended claims, for the tax credit under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the tax credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the tax credit.

(f) The director of taxation shall:

(1) Prepare the forms as may be necessary to claim a tax credit under this section; and

(2) Adopt rules pursuant to chapter 91 to effectuate the purposes of this section.

(g) The department shall submit an annual report to the legislature, no later than twenty days prior to the convening of the regular session, on the number of taxpayers claiming the tax credit and the total cost of the tax credit to the State during the past year.

(h) As used in this section:

"Alternative fuel motor vehicle" means a motor vehicle that is propelled through the use of an alternative fuel as that term is defined in section 243-1.

"Hybrid motor vehicle" means a motor vehicle with a hybrid propulsion system that uses a combination of electricity and traditional fuel.

"Traditional fuel" means gasoline or other petroleum-based motor fuel commonly used on the highways of the State."

SECTION 3. Chapter 291, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§291- Hybrid and alternative fuel motor vehicles; metered parking permits. The director of transportation, in the case of state highways, or the respective county director of finance, in the case of county roads and streets, may issue a limited number of parking permits to applicants that own hybrid motor vehicles or alternative fuel motor vehicles to permit vehicles displaying the permit to park without payment of metered parking fees, in a state or county metered parking space, respectively, for a maximum of two-and-a-half hours or the maximum amount of time the meter allows, whichever is longer.

For the purposes of this section, "hybrid motor vehicle" means a motor vehicle with a hybrid propulsion system that uses a combination of electricity and combustible fuel.

For the purposes of this section, "alternative fuel motor vehicle" means a motor vehicle that is propelled through the use of an alternative fuel as that term is defined in section 243-1."

SECTION 4. Section 291C-222, Hawaii Revised Statutes, is amended to read as follows:

"§291C-222 Designation of high occupancy vehicle lane. (a) The director of transportation by rules adopted in accordance with chapter 91, and the counties by ordinance, may designate high occupancy vehicle lanes as to roadways under their respective jurisdictions.

(b) Signs and other official traffic-control devices that designate high occupancy vehicle lanes shall be placed and maintained to advise drivers of the high occupancy vehicle requirement and the hours of usage. When the high occupancy vehicle lane also serves as a contra-flow lane, the hours of usage as a high occupancy vehicle lane shall be the time when the lane is coned for use as a high occupancy vehicle lane.

(c) No motor vehicle shall be operated upon these lanes except in conformance with the instructions on the signs and other official traffic-control devices.

(d) A hybrid motor vehicle or an alternative fuel motor vehicle may use any high occupancy vehicle lane regardless of the number of occupants.

For the purposes of this section, "hybrid motor vehicle" and "alternative fuel motor vehicle" shall have the same meanings as in section 235- .

[~~(d)~~] (e) A motorcycle may use any high occupancy vehicle lane, regardless of the number of occupants.

[~~(e)~~] (f) Any vehicle authorized by rules adopted in accordance with chapter 91 may use any high occupancy vehicle lane, regardless of the number of occupants, when the use is determined to enhance public safety and improves traffic conditions."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval, provided that section 2 shall apply to taxable years beginning after December 31, 2005.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1486
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII