Georgia Regulatory Agency Proposes Rules for Alternative Fuel Tax Credits

On April 23, the Georgia Department of Natural Resources (DNR) issued proposed rules clarifying the process by which manufacturers and owners of alternative fuel vehicles may demonstrate that they qualify for tax credits enacted last year as part of House Bill 348.  The rules cover commercial medium and heavy duty vehicles and extend to new original equipment manufactured (OEM) vehicles as well as conversions.  Under the proposed rules, vehicles powered by natural gas, electricity, propane or hydrogen qualify so long as they are solely powered by an alternative fuel in the case of medium duty vehicles (defined as 8,500 lbs. – 26,000 lbs. GVWR), or primarily powered by an alternative fuel (90 percent or more) in the case of heavy duty vehicles, and they have been certified to low-, ultra-low or zero emission standards. Proof of certification to U.S. EPA emission standards is required.

The new tax credits are available for vehicles purchased or converted after July 1, 2015 and before June 30, 2017.  Medium duty vehicles qualify for a maximum credit of $12,000 while heavy duty vehicles qualify for a maximum credit of $20,000.  Persons or businesses applying for tax credits are limited to $250,000 per year.  Available credits are also subject to an overall annual limit of $2.5 million.

The notice indicates that for new vehicle applications for approval of certificates for tax credits may be submitted by the owner or a dealer.  For conversions, applications for tax credit certificates are to be filed by the owner of the vehicle.

The Environmental Protection Division of the DNR will hold a public hearing in Atlanta, Georgia, on May 22 to receive comments on the proposal.   Written comments also may be submitted until May 29. The DNR Board will consider approval of the proposed regulations at its June 24 meeting.  Additional details on this issue are available here.