HB127 Alabama 2012 Session

Summary

Primary Sponsor

Greg Wren

Republican

Session

Regular Session 2012

Title

Income tax, motor vehicles, purchase of any qualified hybrid vehicle, annual sales tax credit authorized for amount of sales tax paid, not to exceed certain amount, definitions

Summary

HB127 would create a state income tax credit in Alabama equal to the full sales tax paid on the purchase of a qualified hybrid vehicle, up to $2,000 per vehicle.

What This Bill Does

It would let a taxpayer subtract the full sales tax paid on the purchase of a qualified hybrid vehicle from their Alabama state income tax, up to $2,000 per vehicle. The credit applies to 4-wheeled gas-electric hybrids acquired on or after October 1, 2012 that were previously qualified under IRS rules. Credit availability is limited to one vehicle per individual and up to ten vehicles per business entity, and the vehicle must be registered in Alabama and the owner must comply with applicable laws for hybrid purchases in that year. The Department of Revenue may adopt rules to administer the credit.

Who It Affects

• Individuals who purchase a qualified hybrid vehicle can claim a credit against their Alabama state income tax, limited to one vehicle per person.
• Business entities that purchase qualified hybrid vehicles can claim credits against Alabama state income tax, limited to ten vehicles per entity.

Key Provisions

• Credit equals 100% of the sales tax paid on the purchase of a qualified hybrid vehicle, up to $2,000.
• Eligible vehicle: a 4-wheeled gas-electric hybrid acquired on or after October 1, 2012 that was previously qualified under IRS rules.
• Limits: one vehicle per individual, up to ten vehicles per business entity.
• Eligibility: vehicle must be registered in Alabama and owner must comply with applicable laws/regulations in the year of titling.
• Administration: the Alabama Commissioner of the Department of Revenue may adopt rules to administer the credit.
• Effective date: the credit would take effect on the first day of the third month after the bill is passed and approved (or becomes 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