Sub. H.B. 176 Summary

• Creates the Gaseous Fuel Vehicle Conversion Program administered by the Department of Environmental Protection, with $16 million annually appropriated to provide grants up to $500,000 per entity for converting public fleets and purchasing alternative fuel vehicles.

• Applies motor fuel tax to compressed natural gas and establishes a temporary partial tax exemption (0% for first 36 months, then escalating to 14% over 10 years) on compressed natural gas, liquid natural gas, and propane used as motor fuel.

• Allows motor vehicles fueled by liquid natural gas to exceed gross vehicle weight limits by up to 2,000 pounds on non-interstate highways.

• Provides nonrefundable income tax credits (up to $25,000 for large vehicles) for taxpayers purchasing new alternative fuel vehicles or converting traditional fuel vehicles, available for five years.

• Reduces sales tax on qualified plug-in electric vehicle purchases or leases by up to $500, limited to one vehicle per individual per year or ten vehicles per business per year.