AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX

HB 5738 proposes a tax credit for individual taxpayers in Rhode Island who convert their gas-powered vehicles to run on alternative fuels. This credit covers equipment and labor costs incurred for the conversion. Taxpayers can receive up to 50% of these costs, with a maximum credit of $2,000 for lighter vehicles and $3,000 for heavier vehicles. Eligible alternative fuels include natural gas, electricity, hydrogen, and certain other fuel types. The credit cannot exceed the taxpayer's income tax liability and takes effect for the 2026 tax year.