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SB 749 - This act creates an income tax credit equal to 25% of the cost to purchase and install E-85 conversion kits on motor vehicles. The credit is non-refundable and fully transferable. The program for the tax credit is capped at $500,000 and expires in five years. The act creates an income tax deduction for tax year 2009, for a taxpayer's purchase of qualified hybrid vehicles. The deduction will equal the lesser of one thousand five hundred dollars or ten percent of the purchase price of the vehicle. The tax deduction must be taken in the year in which the purchase is made. The act creates a tax credit for the purchase of E-85 gasoline and biodiesel. The tax credit will be equal to: twenty five cents per gallon of ethanol or five cents per gallon of biodiesel for 2009; twenty cents per gallon of ethanol or three cents per gallon of biodiesel for 2010 and 2011; and fifteen cents per gallon of ethanol or five cents per gallon of biodiesel for 2012 and each subsequent year. The tax credit must be for at least fifty dollars, but may not exceed five hundred dollars per taxpayer per year. The aggregate amount of tax credits which may be redeemed by all taxpayers in any given year shall not exceed five hundred thousand dollars. The tax credit is non-refundable, but may be carried forward three years. The provisions allowing for the tax credit for purchases E-85 gasoline and biodiesel will sunset six years from the effective date of the act unless re-authorized. The act creates a state and local sales and use tax exemption for purchases of new diesel-powered motor vehicles with a gross vehicle rating not in excess if eight thousand five hundred pounds. The act also creates a state sales tax exemption for fiscal year 2009, for purchases of automobiles designed to operate on eighty-five percent ethanol fuel. This act is similar to SS/SCS/HCS/HB 1092 (2006), Senate Bill 842 (2006), and Senate Bill 40 (2007). JASON ZAMKUS
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