Bill > H2435

This bill establishes an excise tax credit for businesses that purchase new commercial vehicles designed to run on alternative fuels, such as electricity, liquid petroleum gas, natural gas, or hydrogen. Specifically, it offers a credit of up to $20,000 for the purchase of an "alternative fuel heavy-duty vehicle," defined as a commercial vehicle weighing over 26,001 pounds that primarily runs on these alternative fuels, meaning at least 90% of its power comes from them and it's registered in Massachusetts. For "alternative fuel medium-duty vehicles," which weigh between 8,500 and 26,001 pounds and are solely fueled by alternative fuels and registered in Massachusetts, the credit is up to $12,000 per vehicle. The bill also clarifies that "new commercial vehicle" includes those modified by third-party manufacturers as long as the original equipment manufacturer covers the entire vehicle warranty. The total tax credit a business, or any "affiliated entity" (a related business), can claim in a year is capped at the lesser of their income tax liability or $250,000, with any unused credit allowed to be carried forward to future tax years, but not applied to past ones. The bill also mandates that the state's tax commissioner will create the necessary regulations to put these provisions into effect.