Bill > S1355

This bill aims to incentivize the purchase and use of alternative fuel vehicles by offering tax credits and exemptions, and by allowing local governments to designate parking for these vehicles. Specifically, it allows cities and towns to restrict parking areas for vehicles identified as "reduced emissions vehicles" (which are defined as ultra-low or zero emissions vehicles). For individuals and corporations, the bill provides a tax credit equal to 50% of the "incremental cost" (the difference in price between an alternative fuel vehicle and a comparable gasoline-powered vehicle) for purchasing an alternative fuel vehicle or converting a gasoline vehicle to run on alternative fuels, and also for constructing public alternative fuel fueling facilities. Alternative fuels are broadly defined to include substances like methanol, ethanol, natural gas, hydrogen, and electricity, as long as they are substantially not petroleum-based. The bill also exempts sales of equipment for converting vehicles to alternative fuels, sales of the "incremental cost" portion of alternative fuel vehicles, and sales of equipment for dispensing alternative fuels from sales tax, with these exemptions expiring at the end of 2002. Additionally, it exempts alternative fuel vehicles from certain highway use excises, also with an expiration date of the end of 2002. Finally, it clarifies that the rates and terms for the sale of alternative fuels for motor vehicle use will not be regulated by the Department of Public Utilities, though regulated gas and electric companies selling these fuels must maintain separate records.