The Senate on Thursday approved a bill that would create a state income tax credit for purchasing electric and hybrid vehicles.
The Senate voted 31-1 to approve Senate Bill 482 by Sen. Will Bond, D-Little Rock, sending the bill to the House.
The bill would create an income tax credit of $300 for buying an electric vehicle and of $150 for buying a hybrid vehicle. The credit would be limited to new purchases and no more than two credits per year.
The bill is projected to reduce state tax revenue by about $336,000 in fiscal 2020, according to the state Department of Finance and Administration.
Bond said his bill would create an incentive for buying these vehicles after the Legislature voted to raise the registration fees for those vehicles to help raise money for the state Department of Transportation.
Electric vehicle registration fees will increase by $200 a year and for hybrid vehicles by $100 a year, effective Oct. 1, to raise a projected $1.9 million in fiscal 2021.
-- Michael R. Wickline