The proposed bill amends Chapter 44-30 of the General Laws, introducing a new section, 44-30-28, which establishes a tax credit for individuals converting motor vehicles to operate on alternative fuels. The bill allows taxpayers to claim a credit against their income tax for equipment and labor costs associated with the conversion, with specific limits based on the vehicle's gross weight. The maximum credit is set at $2,000 for vehicles weighing 10,000 pounds or less and $3,000 for those over that weight. Additionally, the bill specifies that sellers of alternative fuel cannot claim credits for converting their own vehicles.

The bill defines "alternative fuel" to include natural gas, liquefied petroleum gas, liquefied natural gas, hydrogen, cooking oil, electricity, and other fuels with a significant alcohol content. It also stipulates that the credit cannot exceed the taxpayer's income tax liability, and there is no provision for carrybacks or carryforwards of the credit. This act is set to take effect for the tax year beginning January 1, 2026.