2024 -- S 2930

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LC004936

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO TAXATION -- PERSONAL INCOME TAX

     

     Introduced By: Senators Zurier, Gu, DiPalma, Sosnowski, LaMountain, Lauria, and
DiMario

     Date Introduced: March 28, 2024

     Referred To: Senate Finance

     (General Treasurer)

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 44-30 of the General Laws entitled "Personal Income Tax" is hereby

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amended by adding thereto the following section:

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     44-30-28. Tax credit for alternative fuel motor vehicle conversion.

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     (a)(1) Except as provided in subsection (b) of this section, an individual is allowed a tax

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credit against taxes imposed by ยง 44-30-2 for equipment and labor costs incurred to convert a motor

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vehicle licensed in Rhode Island to operate on alternative fuel.

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     (2) A seller of alternative fuel may not receive a credit for converting its own vehicles to

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the alternative fuel that it sells.

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     (b) The maximum credit a taxpayer may claim in a year under this section is an amount

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equal to fifty percent (50%) of the equipment and labor costs incurred but the credit may not exceed:

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     (1) Two thousand dollars ($2,000) for conversion of a motor vehicle with a gross weight

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of ten thousand (10,000) pounds or less; or

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     (2) Three thousand dollars ($3,000) for conversion of a motor vehicle with a gross vehicle

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weight over ten thousand pounds (10,000).

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     (c) For purposes of this section, "alternative fuel" means:

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     (1) Natural gas;

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     (2) Liquified petroleum gas;

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     (3) Liquified natural gas;

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     (4) Hydrogen;

 

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     (5) Electricity; or

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     (6) Any other fuel if at least eighty-five percent (85%) of the fuel is methanol, ethanol or

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other alcohol, ether, or any combination of them.

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     (d)(1) The credit allowed under this section may not exceed the taxpayer's income tax

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liability.

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     (2) There is no carryback or carryforward of the credit permitted under this section, and

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the credit must be applied in the year the conversion is made, as determined by the taxpayer's

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accounting method.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- PERSONAL INCOME TAX

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     This act would provide a tax credit to individual taxpayers who convert their gas-powered

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vehicle into a vehicle propelled by an alternative fuel source.

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     This act would take effect upon passage.

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