LDR FACT SHEET: Alternative Fuels Tax Credit

  • An emergency rule was issued by former Secretary of Revenue Cynthia Bridges on April 30, 2012, that expanded the scope of R.S. 47:6035 to allow Louisiana taxpayers to claim tax credits for the purchase of flex-fuel vehicles;
  • The emergency rule issued by former Secretary Bridges was not in accordance with the Administrative Procedure Act (APA);
  • Since the emergency rule was not issued in accordance with the APA, the rule was rescinded by the Governor on June 14, 2012;
  • Louisiana Department of Revenue (LDR) issued a statement on June 19, 2012 that indicated all claims under the Alternative Fuel Tax Credit Program postmarked on or before June 14, 2012, would be honored;
  • After the governor rescinded the previous emergency rule, LDR initiated the formal rule-making process in full accordance with all APA requirements, and in consultation with the Department of Natural Resources (DNR);
  • The published rule (effective today – December 20, 2012) clarifies the legislative intent of R.S. 47:6035 and reflects the legislative record of deliberations prior to final passage of the Act;
  • Between June 14, 2012, and December 17, 2012, all claims received and held by LDR total approximately $11.2M;
  • Of the $11.2M currently held by LDR, approximately $9M relates directly to flex-fuel vehicles.
  • No credits will be allowed for any claim related to flex-fuel vehicles received by LDR after June 14, 2012;
  • Vehicles that operate on both alternative fuel and petroleum based fuel from the same tank will be disallowed for the credit;
  • Flex-fuel vehicles are not eligible for the tax credit;
  • Claims that continue to qualify for the tax credit under the new rule (LAC 61:I.913) include:
    • fueling stations
    • vehicle conversions
    • vehicles that operate on an alternative fuel from a separate tank that does not burn petroleum gasoline or petroleum diesel;
  •  Analysis is ongoing regarding a final annual financial estimate to the state as to the number of applications received by LDR after June 14, 2012.

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