Tax on residents and non-residents — Credits — Alternative fuel vehicle conversion credit and mobile food vendor generator electrification credit

(a) Beginning with the taxable year after December 31, 2013, through the taxable year ending December 31, 2035, there shall be allowed against the tax imposed by § 47-1806.03 a credit in the amount of 50% of the equipment and labor costs directly attributable to the cost to convert a motor vehicle licensed in the District that operates on petroleum diesel or petroleum derived gasoline to a motor vehicle that operates on an alternative fuel, not to exceed $19,000 per vehicle. (a-1) Beginning with the taxable year after December 31, 2025, and ending with the taxable year ending December 31, 2035, a credit shall be allowed against the tax imposed under § 47-1806.03 in the amount of 50% of the equipment and labor costs directly attributable to the replacement of a fossil-fuel-powered generator or other greenhouse-gas or pollution-creating generator with a battery-powered or zero-emissions generator used to supply electrical power to appliances for food preparation and servicing in a mobile vending vehicle operated by a mobile vendor; provided, that: (1) The total credit shall not exceed $15,000 per replaced generator; (2) The credit shall be claimed by the taxpayer over a period of 3 tax years, each year in an amount equal to 1/3 of the total tax credit for the mobile vending vehicle plus an allowable amount carried forward under paragraph (5) of this subsection, subject to the limitations in paragraphs (3) and (4) of this subsection; (3) The credit may be claimed for a tax year only if, during that tax year, the mobile vending vehicle was licensed and operated in the District; (4) The credit claimed in any one tax year may not exceed the taxpayer's tax liability under § 47-1806.03 for that year; (5) If the amount of the credit permitted in a tax year exceeds the tax otherwise due under § 47-1806.03 for that tax year, the amount of the credit not used may be carried forward for up to 2 tax years; (6) The credit shall not be refundable; and (7) The credit may not be claimed in a tax year by a taxpayer if the taxpayer in that tax year operated a trade or business within the District related to the mobile vending vehicle that had gross income of more than $12,000 for the tax year. (b) The credit claimed under subsection (a) of this section in any one tax year may not exceed the taxpayer’s tax liability under § 47-1806.03 for that year. The credit shall not be refundable. (c) For the purposes of this section, the term “alternative fuel” shall have the same meaning as provided in § 47-1806.12(f)(1). (d) For the purposes of subsection (a-1) of this section, the term: (1) "Battery-powered generator" means a device that uses a rechargeable battery to store and discharge electrical energy to power appliances or equipment. (2) "Mobile vendor" means a person licensed under District law to sell food or beverages from a mobile vending unit on public space. (3) "Replacement" means the removal, deactivation, or disuse of a fossil-fuel-powered generator such that a battery-powered generator becomes the primary or exclusive source of portable electrical power.