HB322 Alabama 2013 Session

Summary

Primary Sponsor

Greg Wren

Republican

Session

Regular Session 2013

Title

Alternative fuels and technologies, income tax credit for qualified vehicles, modified vehicles, and fueling stations for vehicles using compressed natural gas, compressed liquefied gas, propane, electricity, and hybrid technology

Summary

HB322 would create state income tax credits to encourage buying and modifying vehicles that run on alternative fuels or electricity, and to install fueling equipment, with set dollar caps and a five-year expiration window.

What This Bill Does

It allows nonrefundable income tax credits for: (1) acquiring qualified vehicles or placing in service modifications to use alternative fuels or electricity, up to the lesser of the vehicle/modification cost or $1,500; (2) placing in service refueling or recharging equipment, up to 30% of cost or fixed caps depending on fuel type. Credits are limited to 5,000 vehicles per fuel/technology type and can be carried forward for five years if not fully used in a given year; the entire credit program expires five years after the act’s effective date. The program requires seller-issued certificates and Department of Revenue oversight, including notification when a given fuel/engine type can no longer receive credits.

Who It Affects

• Taxpayers who purchase qualified vehicles or modify vehicles to use CNG, LNG, propane, electricity, or hybrid technology, and who install qualifying refueling/recharging equipment; they could claim credits up to $1,500 per vehicle/modification and up to 30% of equipment cost (subject to per-fuel caps).
• Vehicle dealers/sellers who issue eligibility certificates to buyers and must submit copies to the Department of Revenue; they may be liable to taxpayers for credit amounts if misissued.
• Equipment suppliers/ installers of refueling equipment who qualify for the equipment credit and must ensure eligibility and proper documentation.
• The Alabama Department of Revenue, which administers the credits, issues regulations, handles certifications and notifications, and enforces caps and expiration rules.

Key Provisions

• Qualified vehicle credit: nonrefundable; the credit equals the lesser of the vehicle's cost or $1,500; applies to vehicles meeting defined 'Qualified Vehicle' criteria and limited to 5,000 vehicles per fuel/technology type.
• Modified vehicle credit: nonrefundable; the credit equals the lesser of the modification cost or $1,500; subject to the same 5,000-vehicle cap per fuel/technology type and eligibility rules as for qualified vehicles.
• Certification process: buyers receive a seller-issued certificate; they submit it with their tax return; sellers also provide a copy; the Department may revoke certificates and notify dealers when a given engine type is no longer eligible; liability provisions for misissued certificates are specified.
• Carryforward and expiration: unused credits can be carried forward for five years; credits expire five years after the act’s effective date; the department may set rules governing administration and notification systems.
• Refueling equipment credit: nonrefundable; credit equals lesser of 30% of the cost or fixed caps by fuel type: $5,000 for CNG/LNG, $2,000 for propane, $500 for electricity; carryforward available for five years; program has five-year duration from effective date.
• Definitions and administration: defines terms such as Department, Qualified Vehicle, Modified Vehicle, Specified Engine, and Permitted Vehicle; authorizes the Department to promulgate rules for administration.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Environment