SB94 Alabama 2019 Session

Summary

Primary Sponsor

Bobby D. SingletonSenator

Democrat

Session

Regular Session 2019

Title

Income tax, credit for certain qualified clean-burning motor fuel property including motor vehicles propelled by compressed natural gas, liquified natural gas, or liquified petroleum gas, limitation, Revenue Dept. authorized to make rules

Summary

SB 94 would create a state income tax credit to help offset the cost of qualified clean-burning motor fuel equipment and related infrastructure for vehicles powered by natural gas or electricity, with specific credit amounts and rules.

What This Bill Does

It sets up a one-time Alabama income tax credit for tax years starting October 1, 2020, worth 50% of the cost of qualified clean-burning motor fuel property that meets certain criteria. For certain property (category d), the credit is the lesser of 50% of cost or $3,000. If cost allocation is unclear or no prior credit has been claimed, the credit may be up to the lesser of 10% of the vehicle cost or $2,000. Any unused credit can be carried forward for up to five years, and unmarried taxpayers filing separately may claim half of what a joint return would allow. The Department of Revenue would set rules and penalties to enforce the program, and the credit rules apply immediately after enactment.

Who It Affects

• Taxpayers who install qualified clean-burning motor fuel property on vehicles or install related fueling/delivery infrastructure and qualify for the credit.
• Married taxpayers filing separately, who may each claim half of the credit that would have been allowed if they had filed jointly.

Key Provisions

• Qualified clean-burning motor fuel property includes: (a) new equipment to modify a gasoline/diesel vehicle to run on CNG, LNG, or LPG; (b) a vehicle originally equipped to use such fuels, limited to costs attributable to fuel storage, delivery, and exhaust; (c) property related to delivery/dispensing of CNG/LNG/LPG or a metered public charging system for electricity; (d) private home compression/delivery equipment for noncommercial use.
• Credit amounts: for property in categories a, b, or c, 50% of the cost; for category d, the credit is the lesser of 50% of cost or $3,000.
• Special case: if no prior credit has been claimed or the cost attribution is unclear, credit may be up to the lesser of 10% of the motor vehicle cost or $2,000.
• Credit limitations: the credit can only offset income tax due, and any unused portion can be carried forward up to five years; spouses filing separately may claim half of the joint amount.
• Administration: the Alabama Department of Revenue may adopt rules and establish civil penalties related to the credit.

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