OH SB267

Creates the Gaseous Fuel Vehicle Conversion Program administered by the Director of Environmental Protection, allowing grants up to $500,000 per eligible entity (state agencies, political subdivisions, school districts, public transportation systems, nonprofits) for vehicle conversions or incremental costs of purchasing gaseous fuel vehicles.

Establishes a nonrefundable income tax credit for individual taxpayers and a commercial activity tax credit for businesses that purchase or convert vehicles to operate on compressed natural gas, liquid natural gas, or liquid petroleum gas, with credit amounts ranging from $5,000 to $25,000 based on vehicle gross weight rating.

Applies motor fuel tax to compressed natural gas sales and establishes a temporary reduced tax rate structure starting at zero cents per gallon for the first 36 months after enactment, gradually increasing to 14 cents per gallon by month 97-120.

Establishes definitions and measurement standards for compressed natural gas (6.38 pounds or 139.3 cubic feet equals one gallon equivalent) and includes compressed natural gas in the definition of "motor fuel" subject to taxation.

Appropriates $16 million to the Gaseous Fuel Vehicle Conversion Fund for fiscal years 2016-2017, with intent to continue $16 million annual appropriations through fiscal year 2021.