MS HB994

Establishes an income tax credit for taxpayers who purchase a new qualified plug-in electric drive vehicle or qualified hybrid electric vehicle, equal to the lesser of sales/use tax paid or $3,000.

Defines qualified plug-in electric drive vehicles as four-wheeled motor vehicles with an electric motor drawing from a battery with at least 4 kilowatt hour capacity that is externally rechargeable, weighing no more than 8,500 pounds, and acquired on or after January 1, 2013.

Defines qualified hybrid electric vehicles as light or heavy duty vehicles listed in the U.S. Department of Energy Clean Cities guides that use rechargeable energy storage systems without external electrical plug connectors.

Limits credit to one vehicle per taxable year for individual taxpayers and ten vehicles per taxable year for business entities, with vehicles required to be registered in Mississippi or comply with applicable clean-fuel vehicle regulations.

Prohibits claiming both the credit and a deduction for the same vehicle purchase expenses and becomes effective January 1, 2013.