Exempts new electric vehicles, clean fuel vehicles and vehicles that meet the clean vehicle standards from first year of registration fees

BILL NUMBER:S3565A

Title of bill

An act to amend the vehicle and traffic law, in relation to exempting new electric vehicles, clean fuel vehicles and vehicles that meet the clean vehicle standards from the fees for the first year of registration of such vehicles; and providing for the repeal of such provisions upon expiration thereof

Purpose or general idea of bill

The purpose of the bill would be to expand New York State tax credits for alternative fuel vehicles to include vehicles that meet the clean vehicle standards. It would broaden the types of vehicle technologies that would qualify for tax credits.

Summary of specific provisions

Bill § 1 adds three new sections to the definitional provisions of the Vehicle & Traffic Law (VTL). New 107-a defines "clean fuel vehicle" and new § 114-e defines "electric vehicle", each in a manner consistent with the definition in the Internal Revenue Code. New § 159-a defines the term "vehicle that meets the clean vehicle standards" to match provisions of the federal Clean Air Act relating to vehicles that are certified as meeting exhaust emission standards which the state of California adopted.

Bill § 2 amends VTL § 401 to provide exempt these three classes of vehicles from payment of fees in the first year of registration.

Justification

Current transportation technologies cause over 50% of urban air pollution, produce 30% of greenhouse gases, and are the second largest source of CO2 in the US. Research shows that exposure to automobile and truck emissions can be linked to increased emergency room visits, increased hospital admissions and play a factor in the intensity and frequency of asthma attacks, therefore contributing to overall healthcare costs.

There is an urgent need for cleaner fuel vehicles. The development of cleaner and more efficient vehicle technologies has been on the fore-front of many agendas. Car manufacturers are trying to satisfy the demands of the Federal Government by producing vehicles that can meet the new emission standards. The next step is in gaining the public's awareness that the cleaner vehicles are on the market and there are positive benefits of owning one. One way of gaining the public's interest in buying clean-fuel vehicles is by adding incentives for their purchase. By giving a tax break on registration fees to owners of clean fuel vehicles, it would provide one such incentive for the public. It would also help lower the health risks linked to vehicle emissions, and the costs of the healthcare associated with those risks.

Prior legislative history

2013: Referred to Transportation

Fiscal implications

None noted

Effective date

This act shall take effect January 1, 2015 and will sunset on January 1, 2019, when upon such date the provisions of this act shall be deemed repealed.