HB462 Summary

• Provides state income tax credits for tax years 2012 to 2017 for purchasing motor vehicles powered by compressed natural gas (CNG) or propane gas or converting existing vehicles to use these fuels.

• Allows up to 30 percent credit on the incremental cost of purchasing a CNG or propane gas powered vehicle compared to a conventional vehicle, and up to 30 percent credit on conversion costs.

• Tax credits apply on a dollar-for-dollar basis against Alabama taxpayer income up to the maximum authorized amount and may be carried forward for an additional 10 tax years if unused.

• Limits credits to the first 500 vehicles for each of the four types of credits, as determined by the Department of Revenue.

• Becomes effective on the first day of the third month following passage and gubernatorial approval.