CHARLESTON, W.Va. (AP) - A new-repealed state tax credit for alternative vehicles is taking a bite out of state tax collections.
The tax credit was part for a law to promote investments in natural gas developments. It allowed buyers of alternative fuel vehicles to write off 35 percent of the purchase price of the vehicle, up to $7,500 for passenger cars and $25,000 for commercial vehicles.
The tax credit was repealed in April, but not before a surge in sales of the vehicles.
The state's deputy revenue secretary tells The Charleston Gazette the tax credit accounted for below-estimate collections for July. Mark Muchow says they came in at $297.2 million, about $17.9 million below estimates.
He says the primary reason was taxpayers claiming the tax credit against their July income tax payments.
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