Incentives Watch: Fate of Louisiana Alternative Fuel Vehicle Credit Still Up in the Air


Louisiana’s tax credit for alternative fuel vehicles is in limbo at the moment because Governor Bobby Jindal rejected emergency regulations related to the credit on June 14. The emergency regulations were supposed to go into effect April 30.   

The alternative fuel vehicle credit covers 50 percent of the cost of converting a vehicle to alternative fuel, or $3,000 or 10 percent of the cost of a vehicle with manufacturer-installed alternative fuel equipment, whichever is less.


Governor Jindal rejected the emergency regulations because the former Secretary of the Department of Revenue did not follow the proper procedures in issuing the regulations, according to a shreveporttimes.com article. In fact, Cynthia Bridges, the former Secretary of the Department of Revenue quit her post last Friday, according to the article.


In addition, the emergency regulations stated that E85 flex fuel vehicles qualify for the credit; however, the original intent of the credit was to promote the use of compressed natural gas so only vehicles with a converter kit installed could qualify for the credit, according to an article at ktbs.com. Vehicles with E85 flex fuel do not require a converter kit and should not qualify for the credit, so that is why the Governor rejected the regulations, the article noted.


Therefore, consumers buying vehicles in Louisiana between April 30 and June 14 will not know whether they qualify for the credit until the Department of Revenue issues a new ruling on the credit, so stay tuned.


In addition to Louisiana, Arizona, California, Colorado, Connecticut, District of Columbia, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Missouri, Montana, Nebraska, Nevada, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Texas, Vermont, Washington, and West Virginia offer some type of alternative fuel vehicle incentive, according to Bloomberg BNA’s Green Incentives Navigator.


In other developments . . .

Ohio expanded its job creation credit by allowing employers hiring “home-based employees” to be eligible for the credit, according to a recent Bloomberg BNA Weekly State Tax Reportarticle. A taxpayer may not claim the credit for home-based employees until the taxable year in which the taxpayer hires at least 200 employees more than the number of employees working for the taxpayer as of June 30, 2011.

By: Kathleen Caggiano 

Follow us on Twitter at: @SALTax
Join Bloomberg BNA's State Tax Group on
LinkedIn