MS HB1657

Creates a one-time income tax credit equal to 50% of the purchase price for new alternative fuel vehicles (hydrogen fuel cell, compressed natural gas, liquefied natural gas, liquefied petroleum gas, or electric) or conversion equipment to modify gasoline/diesel vehicles to use alternative fuels

Allows a credit of up to 10% of the cost (maximum $1,500) for purchasing a used alternative fuel vehicle if no prior owner has claimed the credit

Permits unused credit amounts to be carried forward for up to 5 years if the credit exceeds the taxpayer's income tax liability

Married couples filing separately may each claim only half of the credit that would have been allowed on a joint return

Effective date of July 1, 2012, with the Department of Revenue authorized to establish rules and penalties for administration