Louisiana Alternative Fuel Vehicle Incentives and Laws

The Overview

The State of Louisiana offers an income tax credit for 20% of the incremental or conversion costs for Alternative Fuel Vehicles (AFVs) or refueling stations.

Highlights

State Incentives

Revised Statute RS 47:38 last modified 2/16/00, offers a state income tax credit for 20% of the incremental cost of purchasing a factory-equipped AFV, 20% of the cost for converting a vehicle to alternative fuels, and 20% of the cost for alternative fuel refueling stations. 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 2% of the cost of the vehicle or $1500 may be claimed. The RS stipulates that only those vehicles registered in Louisiana, or fueling stations within Louisiana can receive the tax credit. RS 47:305.37 last modified: 2/16/00 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.

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.

Utilities/Private Incentives

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.

Other AFV Fueling Stations in Louisiana

There are currently no stations in Louisiana that provide Biodiesel, Ethanol, Methanol, or Electric fueling services (August 2002).
LPG stations can be found on http://afdcmap.nrel.gov/locator/LocatePane.asp

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:

http://www.rev.state.la.us/forms/lawspolicies/RR02019.pdf

Ethanol and Biodiesel

Act 313 of 2006
R.S. 3:4674

Establishes minimum ethanol and bio-diesel content standards for gasoline and diesel.