Governor Signs Bill Creating Tax Credits For Alt Fuel Vehicles

Georgia Gov. Nathan Deal has signed H.B.348, which establishes a new tax credit program for the purchase of medium- and heavy-duty alternative fuel vehicles.

The two-year program, which will cover new assets purchased between July 1, 2015, and June 30, 2017, concentrates on vehicles that run on natural gas, propane autogas, hydrogen or electricity. These trucks and buses can be 100% OEM products, or they can be new vehicles that feature aftermarket alt-fuel systems "covered by the original equipment manufacturer or covered under separate warranties by the original equipment manufacturer and the third-party equipment manufacturer."

The parameters for medium-duty vehicles are commercial vehicles rated between 8,500 lbs. GVWR and 26,000 lbs. GVWR that run "solely" on an alternative fuel. Heavy-duty vehicles must have a gross vehicle weight ratio equal to or more than 26,001 lbs. and must be "primarily fueled by an alternative fuel" (operating on at least 90% alternative fuel and 10% or less gasoline or diesel).

For medium-duty vehicles, the tax credit is up to $12,000 per vehicle. A credit of up to $20,000 per vehicle will be available for heavy-duty vehicles. The cap on the credits for any taxpayer, whether an individual or a fleet, is $250,000 per tax year, and the overall program will be funded at $2.5 million per fiscal year.

The tax credits will be administered through an application process via the Georgia Department of Revenue, according to Deal's office.

"The vitality of Georgia's transportation system is essential to our economy, our environment and the consistent flow of goods, services and people throughout the state," Deal said. "Alternative fuel vehicles, especially trucks, help companies cleanly and efficiently transport their products, increasing our prominence around the world as a go-to location for business." Read more here.