HB462 Alabama 2012 Session

Summary

Primary Sponsor

Greg Wren

Republican

Session

Regular Session 2012

Title

Tax Credit, vehicles equipped with compressed natural gas (CNG)

Summary

The bill would create state income tax credits to help cover the cost of buying or converting vehicles to run on compressed natural gas or propane.

What This Bill Does

It would authorize Alabama state income tax credits for 2012-2017 to offset the incremental cost of purchasing or converting vehicles to run on CNG or propane. Credits would be worth up to 30 percent of eligible costs and applied on a dollar-for-dollar basis, with carryforward up to 10 years. Credits are limited to the first 500 vehicles for each credit type, and the Department of Revenue would issue rules. The act would take effect on the first day of the third month after it becomes law.

Who It Affects

• Taxpayers (individuals or businesses) who purchase a motor vehicle powered by CNG or propane and would receive a credit for the incremental cost.
• Taxpayers (individuals or businesses) who convert a motor vehicle to operate on CNG or propane and would receive a credit for the conversion costs.

Key Provisions

• Provides state income tax credits for the incremental cost of purchasing a motor vehicle powered by CNG or propane (up to 30%).
• Provides state income tax credits for the costs of converting a motor vehicle to run on CNG or propane (up to 30%).
• Credits are applied against Alabama income tax on a dollar-for-dollar basis and may be carried forward for up to 10 years.
• Credits are limited to the first 500 vehicles for each credit type, as determined by the Department of Revenue.
• The Department of Revenue may adopt rules to implement the program.
• Effective date: the first day of the third month after passage and approval (or when it 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

Taxation