HCS HB 1092 -- TAX DEDUCTION FOR HYBRID VEHICLES

SPONSOR:  Bivins (Sater)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Energy and Environment by a vote of 7 to 0.

This substitute authorizes an individual income tax deduction,
for tax years beginning on or after January 1, 2006, for a
qualified hybrid vehicle that is powered by a combination of an
electric motor and gasoline engine.  The deduction is limited to
the lesser of 10% of the purchase price of the vehicle or $1,500.

The provisions of the substitute will expire six years from the
effective date.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of More than
$136,802 in FY 2007, More than $135,331 in FY 2008, and More than
$136,217 in FY 2009.  No impact on Other State Funds in FY 2007,
FY 2008, and FY 2009.

PROPONENTS:  Supporters say that the bill will provide an
incentive to purchase hybrid vehicles which get better gas
mileage and have lower emission levels than regular vehicles.
The bill will increase the tax base and thereby result in a net
gain of revenue.  Manufacturing operations will benefit, and our
dependence on foreign oil will be reduced.

Testifying for the bill were Representative Sater; Ford Motor
Company, Claycomo; United Autoworkers, Local 710; Clean Cities;
and Sierra Club.

OPPONENTS:  There was no opposition voiced to the committee.

Jason Glahn, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:42 am