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 most vehicles and $3,000 for heavier ones, but the amount cannot exceed the taxpayer's total income tax liability. To qualify, the conversion must be completed in the same year the credit is claimed, and sellers of alternative fuel cannot claim the credit for converting their own company vehicles.