SB502 Alabama 2012 Session

Summary

Primary Sponsor

Cam Ward

Republican

Co-Sponsors

Gerald H. AllenJ.T. WaggonerPaul SanfordGeorge M. “Marc” KeaheyHarri Anne SmithGreg J. Reed

Session

Regular Session 2012

Title

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

Summary

SB502 would create state income tax credits to help Alabama taxpayers buy or convert vehicles to run on compressed natural gas (CNG).

What This Bill Does

It would provide income tax credits for two things: the incremental cost of purchasing a CNG-powered vehicle and the costs of converting a vehicle to use CNG, for tax years 2012 through 2017. The credits could cover up to 75% of these costs and would be applied on a dollar-for-dollar basis against Alabama income tax, with any unused credits carryable for up to 10 years. The Alabama Department of Revenue would set rules for how the credits are to be implemented, and the act would take effect a few months after passage and approval.

Who It Affects

• Alabama individual and business taxpayers who purchase a CNG-powered vehicle and seek a credit for the incremental cost
• Alabama individual and business taxpayers who convert an existing vehicle to run on CNG and seek a credit for conversion costs

Key Provisions

• Credits apply for tax years 2012 to 2017, inclusive
• Up to 75% of the incremental cost of purchasing a CNG-powered vehicle can be credited
• Up to 75% of the costs to convert a vehicle for CNG use can be credited
• Tax credits are applied against Alabama income tax on a dollar-for-dollar basis, up to the maximum authorized
• Unused credits may be carried forward for up to 10 years
• The Department of Revenue may adopt rules for implementation and administration
• Effective date: first day of the third month after passage and approval by the Governor (or as otherwise law)

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation