2025 -- H 5738 | |
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LC001694 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2025 | |
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A N A C T | |
RELATING TO TAXATION -- PERSONAL INCOME TAX | |
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Introduced By: Representatives Fogarty, Carson, Hull, Diaz, Bennett, McGaw, | |
Date Introduced: February 26, 2025 | |
Referred To: House Finance | |
(General Treasurer) | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Chapter 44-30 of the General Laws entitled "Personal Income Tax" is hereby |
2 | amended by adding thereto the following section: |
3 | 44-30-28. Tax credit for alternative fuel motor vehicle conversion. |
4 | (a)(1) Except as provided in subsection (b) of this section, an individual is allowed a tax |
5 | credit against taxes imposed by ยง 44-30-2.6 for equipment and labor costs incurred to convert a |
6 | motor vehicle licensed in Rhode Island to operate on alternative fuel. |
7 | (2) A seller of alternative fuel may not receive a credit for converting its own vehicles to |
8 | the alternative fuel that it sells. |
9 | (b) The maximum credit a taxpayer may claim in a year under this section is an amount |
10 | equal to fifty percent (50%) of the equipment and labor costs incurred but the credit may not exceed: |
11 | (1) Two thousand dollars ($2,000) for conversion of a motor vehicle with a gross weight |
12 | of ten thousand pounds (10,000 lbs.) or less; or |
13 | (2) Three thousand dollars ($3,000) for conversion of a motor vehicle with a gross vehicle |
14 | weight over ten thousand pounds (10,000 lbs.). |
15 | (c) For purposes of this section, "alternative fuel" means: |
16 | (1) Natural gas; |
17 | (2) Liquified petroleum gas; |
18 | (3) Liquified natural gas; |
19 | (4) Hydrogen; |
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1 | (5) Cooking oil; |
2 | (6) Electricity; or |
3 | (7) Any other fuel if at least eighty-five percent (85%) of the fuel is methanol, ethanol or |
4 | other alcohol, ether, or any combination thereof. |
5 | (d)(1) The credit allowed under this section may not exceed the taxpayer's income tax |
6 | liability. |
7 | (2) There is no carryback or carryforward of the credit permitted under this section, and |
8 | the credit must be applied in the year the conversion is made, as determined by the taxpayer's |
9 | accounting method. |
10 | SECTION 2. This act shall take effect for the tax year beginning January 1, 2026. |
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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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1 | This act would provide a tax credit to individual taxpayers who convert their gas-powered |
2 | vehicle into a vehicle propelled by an alternative fuel source. |
3 | This act would take effect for the tax year beginning January 1, 2026. |
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