The Washington Department of Revenue has issued a special notice regarding tax credits expansion for clean alternative fuel commercial vehicles. The notice reflects changes created by Substitute House Bill 1809, which takes effect January 1, 2018. Taxpayers are eligible for a credit against the B&O tax or public utility tax if they purchase or lease clean alternative fuel commercial vehicles. They are also eligible if they pay to have a commercial vehicle modified to run on clean alternative fuel.
How has the program been expanded?
-The law increased the maximum credits allowed per vehicle;
-Qualifying commercial vehicles include those used to transport passengers and provide commercial services;
-Qualifying used vehicles can be 10 years old with mileage up to 450,000 miles; and
-Multiple vehicles may be included on a single application (after March 19, 2018).
What are some credit details?
-It is based on the purchase or lease price, or the costs to modify the vehicle;
-It is limited statewide to $6 million annually (three weight classes each with a $2 million limit);
-It may be earned through January 1, 2021; and
-Earned credits must be used by January 1, 2022.
The notice also discusses vehicle use, credit earning and calculation, annual credit limits, application process and definitions.
Special Notice, Washington Department of Revenue, December 12, 2017, ¶204-324
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