HB242 Alabama 2013 Session

Summary

Primary Sponsor

Greg Wren

Republican

Session

Regular Session 2013

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

HB242 would create a state income tax credit equal to the full sales tax paid on a qualifying hybrid vehicle purchase, up to $2,000 per vehicle.

What This Bill Does

The bill allows an annual state income tax credit equal to 100 percent of the sales tax paid for the purchase of a qualified hybrid motor vehicle, up to $2,000 per vehicle. Credits are limited to one vehicle per individual and up to ten vehicles per business entity. To be eligible, the vehicle must be registered in Alabama and the owner must have complied with applicable laws governing hybrid vehicle purchases in the year the vehicle is titled; the Department of Revenue may issue rules to administer the credit.

Who It Affects

• Individual residents who purchase a qualified hybrid vehicle in Alabama, who could receive up to $2,000 back as a credit (one vehicle per person).
• Business entities that purchase qualified hybrid vehicles, who could receive up to ten credits per entity (one per vehicle, up to ten vehicles).

Key Provisions

• Defines State Sales Tax and Qualified Hybrid Motor Vehicle (a true four-wheeled gas-electric vehicle acquired on or after October 1, 2012, and previously qualified under IRS regulations).
• Provides a credit equal to 100 percent of the sales tax paid on the vehicle purchase, not to exceed $2,000 per vehicle.
• Limits credits to one vehicle per individual and ten vehicles per business entity.
• Requires the vehicle to be registered in Alabama and that the owner complies with applicable laws/regulations in the year of titling.
• The Commissioner of the Department of Revenue may adopt rules to administer the credit.
• Effective date: the first day of the third month after passage and approval by the Governor.

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