SB59 Alabama 2013 Session

Summary

Primary Sponsor

Cam Ward

Republican

Co-Sponsor

Tom Whatley

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

SB59 would provide an annual Alabama state income tax credit equal to the sales tax paid on buying a qualified hybrid vehicle, capped at $2,000.

What This Bill Does

If you buy a qualifying hybrid vehicle, you could receive a credit against your state income tax for the full amount of the sales tax paid, up to $2,000. The credit is 100% of the vehicle’s sales tax but limited to one vehicle per person and ten vehicles per business entity. The vehicle must be registered in Alabama and the owner must meet relevant hybrid-purchase laws in the purchase year. The Department of Revenue can set rules to administer the credit.

Who It Affects

• Individual taxpayers who purchase a qualified hybrid motor vehicle in Alabama and file state income taxes, with the credit available for one vehicle per person and up to $2,000.
• Business entities purchasing qualified hybrid motor vehicles in Alabama, with the credit allowed for up to ten vehicles per entity and up to $2,000 per vehicle.

Key Provisions

• Qualified hybrid motor vehicle is a 4-wheeled gas-electric vehicle acquired on or after October 1, 2012 and that previously qualified under IRS regulations as a qualified hybrid motor vehicle.
• Credit equals 100 percent of the state sales tax paid on the purchase, up to a maximum of $2,000 per vehicle.
• Limits: one vehicle per individual; ten vehicles per business entity.
• Eligibility: vehicle must be registered in Alabama; owner must comply with applicable state and federal laws/regulations for hybrid purchases in the purchase year.
• Administration: the Commissioner of the Department of Revenue may adopt rules to administer the credit.
• Effective date: the act takes effect on the first day of the third month after its passage and approval.

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

Subjects

Motor Vehicles