HB354 Summary

• Allow annual state income tax credit for 100 percent of sales tax paid on purchase of qualified plug-in electric drive vehicles, not to exceed $2,000 per vehicle.

• Qualified vehicles must be 4-wheeled motor vehicles manufactured for public roads, unmodified from manufacturer specifications, weighing no more than 8,500 pounds, with maximum speed of at least 55-65 mph, and powered significantly by electric motor with battery capacity of at least 4 kilowatt hours rechargeable from external source.

• Credit limited to one vehicle per individual and 10 vehicles per business entity for vehicles acquired on or after October 1, 2011.

• Vehicle must be registered in Alabama and owner must comply with applicable state or federal clean-fuel or electric vehicle purchase laws or regulations for the calendar year the vehicle is titled.

• Act becomes effective on the first day of the third month following passage and approval by the Governor.