The bill amends Chapter 44-30 of the General Laws regarding personal income tax by introducing a new section, 44-30-28, which establishes a tax credit for individual taxpayers who convert their gas-powered vehicles to operate on alternative fuel sources. The credit allows individuals to claim up to 50% of the equipment and labor costs incurred for the conversion, with a maximum limit of $2,000 for vehicles weighing 10,000 pounds or less, and $3,000 for vehicles over 10,000 pounds. Additionally, sellers of alternative fuel are prohibited from claiming 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 any fuel that consists of at least 85% methanol, ethanol, or other alcohols, ethers, or combinations thereof. The credit is limited to the taxpayer's income tax liability, with no provisions for carrybacks or carryforwards, meaning it must be utilized in the year the conversion occurs. This act is set to take effect for the tax year beginning January 1, 2026.