(a) The tax imposed by this chapter shall not apply in the case of the importation of a motor vehicle by and for the sole use of a non-profit corporation organized and operated exclusively for charitable or educational purposes, as evidenced by filing with the Office of Lieutenant Governor as a non-profit corporation, no part of the net earnings of which inures to the benefit of any private shareholder or individual, and contributions to such charitable corporations are deductible under the provisions of section 170(c) of the U.S. Internal Revenue Code covering contributions to a charitable or educational organization. The exemption provided for in this section shall not apply to more than two motor vehicles imported by and for the sole use of each eligible non-profit corporation. Upon the sale or transfer of any motor vehicle exempt from taxation under this section, the tax imposed by this chapter shall immediately become due and payable unless an exemption is otherwise provided for in this chapter.
(b) Each such organization which applies for the exemption as provided in subsection (a) of this section shall certify to the Director of the Bureau of Internal Revenue that the organization qualifies as a charitable organization under section 170(c) of the Internal Revenue Code; and shall certify that such vehicles are necessary for the functioning of such organization.
(c)
(1) There is established the Annual Highway User's Tax Holiday beginning each year at 12:01 am on December 15 and ending at 11:59 p.m. on December 31;
(2)
(A) During the Annual Highway Users Holiday, any individual who purchases a new hybrid vehicle or any motor vehicle capable of attaining average fuel economy starting at least 30 mpg for small to midsized vehicles and 22 mpg for SUV is exempt from the Highway User's Tax imposed by this chapter.
(B) Notwithstanding subparagraph (B), an individual who purchases any motor vehicle that uses diesel fuel is not exempt from the tax imposed by this chapter.
(3) To be eligible for exemption under this subsection, the vehicle must be:
(A) purchased during the period designated in paragraph (1); and
(B) labeled by manufacturers as hybrid vehicles or must meet the minimum criteria of the fuel efficient vehicle class.
(4) For purposes of this paragraph “vehicle class” means any hybrid vehicle and fuel efficient vehicle with an MPG of the following:
a. Small Cars 30 mpg
b. Midsized 25 mpg; or
c. SUV 22 mpg.