By establishing a comprehensive licensing regime and tax structure for alternative fuel dealers, HB 823 is poised to influence various aspects of state law. It amends existing statutes to include explicit definitions and guidelines for alternative fuels, enhancing the regulatory framework surrounding energy sources that are gaining popularity in the state. This move could potentially foster growth in the alternative fuel sector, promote environmentally friendly energy usage, and lead to increased compliance due to clear regulations.
Summary
House Bill 823 is a proposed legislation that seeks to revise the alternative fuel tax laws in Montana. The bill introduces provisions for creating a new license for alternative fuel dealers and establishes a tax framework for hydrogen fuel and other alternative fuels. This tax is calculated based on the gasoline gallon equivalency, ensuring that the taxation structure is consistent across different types of alternative fuels, thereby giving clarity and predictability to the industry.
Sentiment
Overall sentiment regarding HB 823 appears to be supportive among stakeholders advocating for the development of alternative fuels. Proponents of the bill argue that establishing a clear regulatory framework is necessary for the growing industry, while also encouraging investment and innovation in clean energy sources. However, there may be areas of contention regarding the tax implications on businesses and the potential for regulatory burdens that could arise from the new licensing requirements.
Contention
Notable points of contention may arise surrounding the implementation of the tax rates and the possible complexities involved in filing under the new licensing structure. Some lawmakers and stakeholders might voice concerns about the potential for higher operational costs for alternative fuel dealers, and there are questions about how these changes could affect market competition. Opposition could stem from fears that the bill might impose excessive regulatory oversight that could stifle growth in the alternative fuel market.
Provides for equivalency of the special fuels tax with the gasoline tax on motor vehicles that operate on the highways using liquefied natural gas, liquefied petroleum gas, or compressed natural gas. (7/1/15) (EN +$6,000,000 SD RV See Note)
Income tax credit; providing credit for investments in qualified clean-burning motor vehicle fuel property; requiring registration of vehicle in this state to qualify for credit. Effective date.