HB243 Alabama 2013 Session

Summary

Primary Sponsor

Greg Wren

Republican

Session

Regular Session 2013

Title

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

Summary

HB243 would create Alabama state income tax credits to help cover 30% of the cost to purchase or convert vehicles to run on compressed natural gas or propane, with caps and time limits.

What This Bill Does

The bill provides two tax credits: up to 30% of the incremental cost to purchase a CNG/propane-powered vehicle, and up to 30% of the costs to convert a vehicle to use CNG/propane fuel. Credits are applied dollar-for-dollar against Alabama income tax, up to a maximum set by law, and can be carried forward for 10 years. The program is limited to the first 500 vehicles for each credit type, and the Department of Revenue would set the specific rules for implementation. The credits apply for tax years 2012 through 2017, and the act becomes effective on the first day of the third month after passage and governor approval.

Who It Affects

• Alabama individual or business taxpayers who purchase a CNG/propane-powered motor vehicle and qualify for the incremental cost credit.
• Alabama individual or business taxpayers who convert an existing vehicle to run on CNG/propane and qualify for the conversion cost credit.

Key Provisions

• Up to 30% of the incremental cost of purchasing a CNG/propane-powered motor vehicle over a non-CNG/non-propane vehicle.
• Up to 30% of the costs to convert a motor vehicle for CNG/propane fuel usage.
• Credits apply for tax years 2012 through 2017 inclusive.
• Credits are used on a dollar-for-dollar basis against Alabama income tax, up to the maximum authorized amount.
• Unused credits may be carried forward for up to 10 tax years.
• Limited to the first 500 vehicles for each credit type, as determined by the Department of Revenue.
• Department of Revenue may adopt rules to implement and administer the credits.
• Effective date is the first day of the third month after passage and governor approval.

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