MS HB335

Allow a one-time income tax credit for investments in qualified clean-burning motor vehicle fuel property, including equipment to convert vehicles to compressed natural gas, liquefied natural gas, liquefied petroleum gas, or propane gas.

Provide 50% tax credit for vehicle conversion equipment and originally-equipped alternative fuel vehicles, 75% credit for commercial fueling infrastructure, and the lesser of 50% or $2,500 for residential compressed natural gas systems.

Permit taxpayers to claim a credit of up to 10% of vehicle cost or $2,500 (whichever is less) when purchasing pre-equipped alternative fuel vehicles if the exact basis cannot be determined.

Allow unused tax credits to be carried forward and applied against income tax liability for up to five succeeding tax years.

Take effect January 1, 2023, and direct the Department of Revenue to promulgate rules for administration and enforcement of the tax credit.