Technology Assessment Division
Louisiana Alternative Fuel Vehicle Incentives and Laws
Revised Statute RS 47:6035 offers a state income tax credit for 50% of the incremental cost of purchasing a factory-equipped AFV, 50% of the cost for converting a vehicle to alternative fuels, and 50% of the cost for alternative fuel refueling equipment. For the purchase of an original equipment manufacturer (OEM) AFV, if the taxpayer is unable to determine the incremental cost of the vehicle relating to the use of alternative fuel, a credit of the lesser of 10% of the cost of the vehicle or $3000 may be claimed.
Additional Information on Tax Credits from the Louisiana Department of Revenue:
Frequently Asked Questions Relating to the Emergency Rule on Alternative Fuel Credit
Amended Frequently Asked Questions Relating to the Emergency Rule on Alternative Fuel Credit
RS 47:305.37 exempts diesel fuel, butane, propane and other LPGs used for farm purposes from state sales and use taxes. For additional information on the tax credit, contact the Louisiana Department of Natural Resources, (225) 342-1399 or the Louisiana Department of Revenue and Taxation, (225) 219-2200.
Tax on LPG, CNG, and LNG
RS 47:802.3 Last Modified: 4/6/00 specifies that all vehicles that are licensed to drive on the public highways fuelled by Natural Gas, or Liquefied Petroleum Gas (Propane) must pay road use tax on an annual basis. The Excise Taxes Division of the Louisiana Department of Revenue has application forms available for a Special Fuels Decal that must be filled out, when a new vehicle is purchased and renewed annually. For Vehicles weighing less than 10,000 Lbs., the annual fee is the lesser of $150 or the number of miles driven divided by 12 MPG times $0.16 per Gal (>11,250 miles). School buses transporting Louisiana students pay a flat fee of $75. For vehicles weighing over 10,000 Lbs the annual fee is the greater of $150 or the number of miles driven divided by the MPG rate (see table below), times $0.16 per Gal.
TYPE OF VEHICLE
MILES PER GALLON
|1.||Any motor vehicle with two axles which has a gross license tag weight classification of 10,000 pounds to 20,000 pounds||
|2.||Any motor vehicle with two axles which has a gross license tag weight classification in excess of 20,000 pounds||
|3.||Any motor vehicle or motor vehicles with a combination of three axles||
|4.||Any motor vehicle or motor vehicles with a combination of four axles||
|5.||Any motor vehicle or motor vehicles with a combination of five axles||
Tax on Other Alternative Fuels.
Taxes on other AF are the same as taxes on Gasoline and Diesel or $0.20 / Gal. There is no provision in the law for taxing electricity when used to fuel a vehicle.
Arkansas Louisiana Gas is now known as Reliant Energy - offers technical assistance for vehicle conversions and station design assistance for natural gas refueling stations. For more information, contact Mr. Danny Hebert 337 373 5224.
Laws and Regulations
Act 927 (1990) requires that as many as 80% of all state vehicles be converted to operate on alternative fuels by 1998. This provision was extended to all political subdivisions of the state by Act 954 (1990). The phase-in began in 1994 with 30% of state vehicles specified to be capable of using alternative fuels. Both acts include a provision to waive specified percentages when an agency provides evidence that a central refueling station for alternative fuels is not available, or that projected net costs will exceed those associated with continued use of traditional gasoline or diesel fuels over the expected useful life of the equipment or facilities.
Acts 927 and 954 also prohibit subsidies and incentives for the production CNG, liquefied petroleum gas (LPG), reformulated gasoline (RFG), and methanol or ethanol. Executive Order EWE 93-9 issued by then-governor Edwin Edwards expired. Act 531 (1990) directed the Public Service Commission to deregulate the sale of CNG by producers, pipelines, distribution companies, or other persons when it is used as a transportation fuel.
AFV Fueling Stations in Louisiana
Tax Credits for Hybrid Vehicles.
The Louisiana Department of Revenue has clarified whether hybrid motor vehicles qualify for the credit for converting vehicles to alternative fuel usage. For more information please contact the Louisiana Department of Revenue directly, or check out the link below:
Ethanol and Biodiesel
Act 313 of 2006
Establishes minimum ethanol and bio-diesel content standards for gasoline and diesel.