Income tax; allow credit for investments in qualified clean-burning motor vehicle fuel property.
Impact
This bill will have a significant impact on state laws by allowing taxpayers to receive a one-time income tax credit based on the costs associated with installing equipment to utilize alternative fuels. The percentage of the credit varies based on the type of property installed—ranging from 50% to as high as 75% for certain infrastructure. Additionally, any unused portion of the credit can be carried forward for up to five years, facilitating long-term investments in clean energy technology.
Summary
House Bill 335 aims to promote the adoption of alternative fuels by providing an income tax credit for investments in specific clean-burning motor vehicle fueling infrastructure. The bill defines qualified clean-burning motor vehicle fuel property that includes equipment modifications for vehicles and home fueling systems for compressed natural gas. The objective of the legislation is to incentivize both individuals and businesses to transition towards the use of alternative fuels, thereby potentially reducing reliance on traditional fossil fuels.
Contention
There may be potential points of contention regarding the implementation and administration of the tax credit. Questions may arise about the effectiveness of such incentives in spurring widespread adoption of alternative fuels. Critics could argue whether the financial burden on the state, resulting from the tax credits, would outweigh the environmental benefits. Furthermore, the specifics of what constitutes 'qualified clean-burning motor vehicle fuel property' could invite debate, particularly concerning safety and certification requirements for installation.
Income tax credit; providing credit for investments in qualified clean-burning motor vehicle fuel property; requiring registration of vehicle in this state to qualify for credit. Effective date.
Income tax credit; providing credit for investments in qualified clean-burning motor vehicle fuel property; requiring registration of vehicle in this state to qualify for credit. Effective date.
Income tax credit; providing credit for investments in qualified clean-burning motor vehicle fuel property; requiring registration of vehicle in this state to qualify for credit. Effective date.