House Bill 765 Summary

• Creates the "Alternative Fuel Vehicles for Mississippi Act of 2013" to encourage use of alternative fuels (compressed natural gas, liquefied natural gas, propane, and hydrogen) in motor vehicles operating in Mississippi.

• Establishes a 50% state income tax credit for taxpayers purchasing or installing alternative fuel conversion kits, OEM alternative fuel vehicles, private refueling systems, or public refueling stations, with a 10-year carryforward period for unused credits and a $1 million per-station cap on refueling station costs.

• Sets state goals of installing public access alternative fuel refueling stations approximately every 100 miles on interstates by 2018 and every 50 miles by 2023, with similar goals for U.S. highways by 2023-2028.

• Excludes natural gas used as motor vehicle fuel from the 7% sales tax and establishes new licensing requirements for dealers, installers, and operators of private refueling systems and public refueling stations.

• Creates or modifies compressed gas taxes, user decals, and reporting requirements for different classes of vehicles based on gross weight, with reduced tax rates for government vehicles and fleet vehicles using compressed natural gas.