H 750 Summary

• Reenacts and expands the alternative fuel facility tax credit from 15% to 25% of construction and installation costs, extending the sunset date from January 1, 2014 to January 1, 2025.

• Creates a new income tax credit for taxpayers who purchase or convert vehicles to use alternative fuels (compressed natural gas, liquified natural gas, liquified petroleum gas), with credits capped at $8,000 for standard vehicles, $6,000 for bi-fuel vehicles, and $12,000 for heavy-duty vehicles.

• Allows taxpayers claiming accelerated depreciation on alternative fuel vehicles to exclude the add-back requirement otherwise applied under state tax law.

• Permits natural gas-fueled vehicles to operate up to 2,000 pounds over the standard weight limit on state highways, provided they meet qualifying criteria as alternative fuel or converted vehicles.

• All provisions are effective for taxable years beginning January 1, 2015, with the vehicle tax credits and facility credits expiring on January 1, 2025.