HB322 Summary

• Provides nonrefundable income tax credit of up to $1,500 for acquisition of qualified vehicles or modification of existing vehicles to use compressed natural gas, liquefied natural gas, propane, electricity, or hybrid technology, limited to 5,000 vehicles per fuel type.

• Allows nonrefundable income tax credit for installation of refueling equipment equal to the lesser of 30 percent of equipment cost or specified dollar limits: $5,000 for compressed/liquefied natural gas, $2,000 for propane, and $500 for electricity.

• Permits taxpayers to carry forward unused credits for five years following the tax year originally claimed, and both credits expire five years after the effective date of the act.

• Requires sellers to provide certificates of eligibility for qualified vehicles, with the Alabama Department of Revenue tracking certificates and halting new credits once 5,000 certificates are received for any single fuel type.

• Takes effect on the first day of the second full month following passage and approval by the Governor.