HB375 Alabama 2013 Session

Summary

Primary Sponsor

Greg Wren

Republican

Session

Regular Session 2013

Title

Compressed natural gas, liquefied natural gas, propane, hydrogen fuel cell, electricity, hybrid technology, income tax credits and other incentives for using vehicles operating such fuels, Alternative Fuel Policy Act, Secs. 2-33-1, 2-33-2, 6-5-345, 32-5A-360, 37-4-160, 40-18-350, 40-18-351 added; Sec. 23-2-150 am'd.

Summary

HB375 would create the Alabama Alternative Fuel Policy Act of 2013, giving tax credits, incentive payments, and new rules to promote vehicles using alternative fuels and to boost in-state biodiesel and cellulosic biofuel production.

What This Bill Does

It sets up a Center for Alternative Fuels to make quarterly payments to Alabama biodiesel and cellulosic biofuel producers for five years. It offers income tax credits for purchasing qualified alternative fuel or modified vehicles and for placing in service refueling equipment, with caps and five-year carryforwards. It also creates incentives related to toll exemptions, high-occupancy vehicle lanes, and electric vehicle charging infrastructure, while limiting liability for refueling equipment providers and requiring regulations to implement the program.

Who It Affects

• Taxpayers and businesses that buy qualified alternative fuel or modified vehicles or install refueling equipment, who would be eligible for income tax credits (with annual and fuel-type limits) and for potential tax credit carryforwards.
• Commercial biodiesel and cellulosic biofuel producers in Alabama, who could receive quarterly payments administered by the Center for Alternative Fuels for production of those fuels.

Key Provisions

• Creates The Alabama Alternative Fuel Policy Act of 2013 to encourage vehicles powered by CNG, LNG, propane, electricity, fuel cells, hybrids, and related refueling equipment, plus in-state biodiesel and cellulosic biofuels production.
• Establishes a Center for Alternative Fuels within the Department of Agriculture and Industries to administer quarterly payments to biodiesel ($900,000 per quarter) and cellulosic biofuels ($1,250,000 per quarter minus prior payments) producers for five years.
• Provides nonrefundable income tax credits for acquisition of qualified or modified vehicles (up to $1,500 per vehicle for most engines; $300 for hybrids) and for placing in service refueling equipment (up to 30% of cost or set maximums by fuel type; $5,000 for CNG/LNG, $2,000 for propane, $500 for electricity).
• Sets annual certificate caps (1,000 per engine type for CNG, electric, hybrid, LNG, or propane; 60 for fuel cells) with five-year expiration and five-year carryforward for unused credits.
• Requires dealer certificates and department posting of remaining credits; credits are nonrefundable and can be carried forward across five years.
• Provides liability protection for providers of stationary refueling equipment that meet codes and are installed properly.
• Amends toll policy to exempt certain alt-fuel vehicles from tolls on Alabama Toll Road, Bridge, and Tunnel Authority projects, under decal requirements.
• Allows the Department of Transportation to designate HOV lanes for certain vehicles using alt fuels, with decals and penalties for improper use.
• Allows voluntary installation of electric vehicle charging stations; clarifies charging service is not necessarily selling electricity and limits PSC jurisdiction over charging rates and terms.
• Creates a separate Article for EV charging stations and for a five-year tax credit program related to alternative and renewable fuels, including certificates and rules for administration.
• Authorizes appropriation from the State General Fund to the Center for Alternative Fuels for the five-year period and directs regulatory implementation by DOT and Revenue Department.
• Effective dates vary: most provisions take effect Oct 1, 2013; some sections (including HOV/EV provisions) take effect Jan 1, 2014; other rules and regulations to be promulgated as required.

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