AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX

This bill creates a tax credit for Rhode Island residents who convert their existing gas-powered vehicles to run on alternative fuels like electricity, natural gas, or hydrogen. The credit covers up to 50% of the equipment and labor costs for the conversion, with a maximum limit of $2,000 for lighter vehicles and $3,000 for heavier ones. To claim the credit, taxpayers must apply it in the same year the conversion is completed, and the amount cannot exceed their total income tax liability for that year. Additionally, the bill prohibits fuel sellers from claiming this credit if they convert their own vehicles to use the fuel they sell.