HB354 Alabama 2011 Session

Summary

Primary Sponsor

Greg Wren

Republican

Session

Regular Session 2011

Title

Income tax, motor vehicles, purchase of any qualified plug-in electric drive vehicle, annual sales tax credit authorized for amount of sales tax paid, not to exceed certain amount, definitions

Summary

HB354 would create an Alabama income tax credit for the full state sales tax paid on qualifying plug-in electric vehicles, up to $2,000 per vehicle.

What This Bill Does

If passed, the bill would allow a state income tax credit equal to 100% of the sales tax paid on the purchase of a qualified plug-in electric drive vehicle, capped at $2,000. The credit applies to one vehicle per individual and up to ten vehicles per business entity, and only for vehicles registered in Alabama that meet the bill’s definitions and applicable clean-fuel laws in the year of purchase. The Alabama Commissioner of Revenue could set rules to administer the credit, and the act would take effect on the first day of the third month after passage and governor approval.

Who It Affects

• Individuals in Alabama who purchase a qualified plug-in electric drive vehicle, with a credit up to $2,000 per vehicle and only one vehicle per person.
• Business entities in Alabama that purchase qualified plug-in electric drive vehicles, with a credit up to $2,000 per vehicle and up to ten vehicles per entity.

Key Provisions

• Defines a 'qualified plug-in electric drive vehicle' with specific criteria (4-wheeled, manufactured for public road use, not modified, acquired for use or lease, weight limit, minimum top speed, electric motor powered by a rechargeable battery, etc.).
• Creates an annual state income tax credit for the full amount of state sales tax paid on the purchase of a qualified plug-in electric drive vehicle, up to $2,000.
• Limits credits to one vehicle per individual and ten vehicles per business entity.
• Requires the vehicle to be registered in Alabama and the owner to comply with any applicable clean-fuel/electric vehicle laws for the year the vehicle is titled.
• Transfers administration to the Commissioner of the Department of Revenue, including the authority to adopt rules for credit administration.
• Effective date: the first day of the third month following passage and governor approval (or as otherwise provided by law).

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Motor Vehicles