Sec. 2. 36 MRSA §1752, sub-§1-G, as enacted by PL 1997, c. 791, Pt. A, §1, is repealed.

Sec. 3. 36 MRSA §1760, sub-§79, as enacted by PL 1997, c. 791, Pt. A, §2, is repealed.

Sec. 4. 36 MRSA §1760, sub-§79-A is enacted to read:

79-A.__Clean fuel vehicles.__The amount of the sale or lease price of a new hybrid gasoline-electric vehicle or a fuel-cell- fueled or hydrogen-fueled vehicle.

SUMMARY

Current law provides a sales tax exemption for a clean fuel vehicle, defined as a vehicle that may be propelled by a clean fuel or a fuel-cell electric vehicle that uses any fuel, but only up to the amount that the clean fuel vehicle price exceeds the price of a gasoline-fueled or diesel-fueled internal combustion vehicle.

This bill exempts from the sales tax 100% of the sale or lease price of a new hybrid gasoline-electric vehicle or a fuel-cell- fueled or hydrogen-fueled vehicle. This bill also exempts, for the first 3 model years of a hybrid gasoline-electric vehicle or a fuel-cell-fueled or hydrogen-fueled vehicle, the excise tax due on the vehicle. After the first 3 years, the rate of excise tax is the same as on other motor vehicles of the same age.