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  • Since the emergency rule was not issued in accordance with the APA, the rule was rescinded by the Governor on June 14, 2012;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  • After the governor rescinded the previous emergency rule, LDR initiated the formal rule-making process in full accordance with all APA requirements, and in consultation with the Department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.


LDR Statement on Louisiana Alternative Fuel Credit (Act 469 of 2009)

BATON ROUGE – On June 14, 2012, Governor Bobby Jindal rescinded an LDR emergency rule regarding alternative fuel tax credits (Act 469 of 2009). LDR has begun the rule making process to determine the proper scope of this tax credit.

LDR will honor any refunds already paid.

We will grant refund requests postmarked on or before June 14, 2012, the date the emergency rule was rescinded.

We will be able to address questions about future claims after we complete a thorough rule –making process.


RIB 12-025: Frequently Asked Questions Relating to the Emergency Rule on Alternative Fuel Credit

The Louisiana Department of Revenue has issued Revenue Information Bulletin 12-025: Frequently Asked Questions Relating to the Emergency Rule on Alternative Fuel Credit.

To read the FAQs in RIB 12-025, visit revenue.louisiana.gov.