Report Title:

Hybrid Motor Vehicles; General Excise Tax Exemption

Description:

Provides a tax exemption for the purchase of a qualified alternative fuel vehicle.  (SD1)

THE SENATE	S.B. NO.	985
TWENTY-FOURTH LEGISLATURE, 2007		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

relating to tax credits.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 237-24.75, Hawaii Revised Statutes, is amended to read as follows:

"[[]§237-24.75[]]  Additional exemptions. (a)  In addition to the amounts exempt under section 237-24, this chapter shall not apply to [amounts]:

(1) Amounts received as a beverage container deposit collected under chapter 342G, part VIII[.]; and

(2) Amounts received from the sale of alternative fuel motor vehicles or hybrid vehicles.

(b)  For the purpose of this section "alternative fuel motor vehicle" means a motor vehicle that obtains forty miles or more per gallon and as defined in section 30B of the Internal Revenue Code (with respect to alternative motor vehicle tax credit), and includes advanced lean burn technology motor vehicles, alternative fuel motor vehicles, fuel cell motor vehicles, and hybrid motor vehicles."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2007, and shall apply to gross income and gross proceeds received after June 30, 2007.