SB 2908 Summary

• Creates income tax credit equal to 50% of cost for taxpayers purchasing or installing alternative fuel vehicle equipment, conversion kits, or refueling systems, with credit carryforward allowed for 10 years if tax liability is exceeded.

• Excludes natural gas used as motor vehicle fuel from sales tax and establishes privilege taxes on compressed natural gas and liquefied natural gas sales and use.

• Establishes state goals for public access alternative fuel refueling stations: one station every 100 miles on interstate highways by 2018 (expanding to every 50 miles by 2023) and similar coverage on U.S. highways by 2023-2028.

• Creates licensing and permitting requirements for dealers, installers, private refueling systems, and public refueling stations, with monthly reporting obligations for dealers and installers.

• Applies annual privilege taxes on compressed gas motor vehicles ranging from $140-$300 depending on vehicle class and tax-exempt status, with government vehicles receiving reduced tax rates.