TAX CREDIT ANALYSIS
Program Name: Alternative Fuel Stations Department: Natural Resources Date: October, 2009
Program Category: Environmental Type: Tax Credit__X__ Other (specify)____
Statutory Authority: 135.710 Applicable Taxes: Tax credit on taxes otherwise due under Chapter 143 RSMo,
except sections 143.191 to 143.265 (withholding of tax).
Program Description and Eligibility Requirements:
SB 931 (2008 legislative session) section 135.710 RSMo, created a tax credit, for the costs of construction of qualified alternative fuel vehicle refueling properties. The
credit is for the costs directly associated with the purchase and installation of equipment used for storage and dispensing of alternative fuels into motor vehicles owned
by eligible applicants or private citizens. The new law further states that a business is eligible to apply for the tax credit if at least fifty-one percent of the costs associated
with the project are paid to qualified Missouri contractors. Any eligible applicant who installs and operates a qualified alternative fuel vehicle refueling property shall be
allowed a credit against the tax otherwise due under chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265 RSMo, or due under
chapter 147 RSMo or chapter 148 RSMo.
Explanation of How Award is Computed: Entitlement __X___ Discretionary _____
The tax credit shall not exceed the lesser of twenty thousand dollars or twenty percent of the costs directly associated with the purchase and installation of any
alternative fuel storage and dispensing equipment on any qualified alternative fuel vehicle property. The total amount of credits that may be claimed may not exceed $3
million in taxable year 2009; $2 million in taxable year 2010; and $1 million in taxable year 2011.
Program Cap: Cumulative __see above__ (remainder of cumulative cap) $__________ Annual __see above__ None ________
Explanation of cap: There is an annual cap of $3 million for taxable year 2009; $2 million for taxable year 2010; and $1 million for taxable year 2011.
Explanation of Expiration of Authority: The tax credit is authorized for tax years beginning January 1, 2009, and ending before January 1, 2012.
Specific Provisions: (if applicable)
Carry forward __2__ years Carry Back _____ years Refundable _____ Sellable/Assignable __X___ Additional Federal Deductions Available _____
Comments on Specific Provisions: A federal tax credit is available for hydrogen alternative fuel refueling properties placed in service before December 31, 2014, and
for other alternative fuel refueling properties placed in service before December 31, 2009.
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011
Actual Actual Actual (current year) (budget year)
Certificates Issued (#) N/A N/A 0 32 30
Projects (#) N/A N/A 0 32 30
Amount Authorized N/A N/A $0 $320,000 $300,000
Amount Issued N/A N/A $0 $320,000 $300,000
Amount Redeemed N/A N/A $0 $320,000 $300,000
EST. Amount Outstanding N/A N/A $0 N/A N/A
Note: This was a new tax credit beginning in FY 2009, therefore prior year data is not applicable. MDNR did not receive any applications for the tax credit in FY2009,
but expects to receive applications in the coming months for tax year 2010.
TAX CREDIT ANALYSIS
Program Name: Alternative Fuel Stations Department: Natural Resources Date: October, 2009
HISTORICAL AND PROJECTED INFORMATION
FY 2007
FY 2008
$4,000,000
$3,000,000 FY 2009
$2,000,000
FY 2010
$1,000,000
$0 FY 2011
Amount Authorized Amount Issued Amount Redeemed
Comments on Historical and Projected Information: Since this was a new tax credit beginning in FY 2009, prior year data is not applicable.
BENEFIT: COST ANALYSIS (includes only state revenue impacts)
FY 2009 Other Fiscal Period Derivation of Benefits:
ACTUAL (indicated time period)
BENEFITS N/A
Direct Fiscal Benefits
Indirect Fiscal Benefits
Total
COSTS N/A
Direct Fiscal Costs
Indirect Fiscal Costs
Total
BENEFIT: COST
Other Benefits:
TAX CREDIT ANALYSIS
Program Name: Alternative Fuel Stations Department: Natural Resources Date: October, 2009
PERFORMANCE MEASURE(S)
Total Number of Locations in MO Dispensing Alternative Fuels to the Public
300
170 200
200
144 140
91 96 108
100 Projected Actual
0
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012
Since this was a new measure in FY 2009, prior year projected data is not available.
Number of Gallons of Alternative Fuel Sold at Locations Claiming Tax Credit (Cumulative)
10,000,000
8,832,000
8,000,000
6,000,000 Since this was a new tax credit beginning in FY 2009 (SB 931), prior
5,952,000
4,000,000 year data is not applicable.
3,072,000
2,000,000
0
FY 2007 Actual FY 2008 Actual FY 2009 Actual FY 2010 Projected FY 2011 Projected FY 2012 Projected
TAX CREDIT ANALYSIS
ated
$3
and
TAX CREDIT ANALYSIS
TAX CREDIT ANALYSIS
Historical and Projected Information:
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY2012
Amount Authorized $0 $0 $0 $320,000 $300,000 $300,000
Amount Issued $0 $0 $0 $320,000 $300,000 $300,000
Amount Redeemed $0 $0 $0 $320,000 $300,000 $0
# of Projects 0 0 0 32 30 30
# Estimated Outstanding 0 UNKNOWN UNKNOWN UNKNOWN
FY10 Projected Amount Redeemed $0
FY11 Projected Amount Redeemed $106,667
9/10/09 (LS edit) - FY10 & FY11 amt redeedmed - can't leave as N/A; since impossible to predict, assumed we'll redeem the same amt issued by year.
Did not revise the FY11 Projected Amt Redeemed formula; didn't use formula result either.
Note: The information for this measure is not currently available. This information will be collected and reported in future years. Updated 07-29-09
The projections for this measure came from the fiscal note on Tax credits - Alternative Fuel Facilities, The Federal Energy Policy Act of 2005, Title XIII.
Subtitle D. Section 1342, and Missouri Revised Statutes Chapter 135. Updated 08-04-09 SDT
Please do not delete this sheet. It has formulas in it that are linked to the charts in the form.
Explanation: The WETC was renewed in 1997. Source of the data for this chart is the DNR Air Pollution Control Program.
Performance Measures
Total number of locations dispensing alternative fuels to the public
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012
Projected N/A N/A 144 140 170 200
Actual 91 96 108 N/A N/A N/A
The actual number came from the State Fleet Efficiency & Alternative Fuel Program booklet.
projection for FY 2010 is 108*1.30 = 140. Projections for FY2011 140*1.21 = 170. Projections for 170*1.18= 200
Assumptions:
Assume 30 percent increase in projects between FY 2009 and FY 2010; assume 21 percent increase in projects between FY 2010 and FY 2011;
assume 18 percent increase in projects between FY 2011 and FY 2012.
Average cost to purchase and install storage and dispensing equipment: $50,000 per location. As per recommendation from John B.
The tax credit shall be the lesser of $20,000 or 20 percent of the project costs. Twenty percent of $50,000 is $10,000, which is the lesser amount.
$10,000 x the number of projected new projects claiming the tax credit (32 projects in fy 2010, 30 projects in fy 2011, and 30 projects in fy 2012)
Authorized $ # projects
The projected dollar amounts and number of certificates: Authorized FY 10 $ 320,000 32
Authorized FY 11 $ 300,000 30
Authorized FY 12 $ 300,000 30
Number of gallons of alternative fuel sold at locations claiming tax credit
Number of
gallons of
alternative
fuel sold
at
locations
claiming FY 2007 FY 2008 FY 2009 FY 2010 FY 2011
tax credit Actual Actual Actual Projected Projected FY 2012 Projected
0 0 0 3,072,000 5,952,000 8,832,000
Note: The information for this measure is not currently available. This information will be collected and reported in future years.
This source of this information was supplied from MFA Oil per Cindy C.
Assumption:
32 new stations X 8,000 gal sold X 12 months = 3,072,000 for FY2010
30 new stations X 8,000 gal sold X 12 months = 2,880,000 + 3,072,000 = 5,952,000 culmulative for FY 2011
30 new stations X 8,000 gal sold X 12 months = 2,880,000 + 2,880,000 + 3,072,000 = 8,832,000 culmulative for FY 2012