Fuel Economy

§287.757.  Tax credit for conversion of vehicles to alternative fuel usage

A.  The intent of this Section is to provide an incentive to persons or corporations to invest in qualified clean-burning motor vehicle fuel property.  Any person or corporation investing in such property as specified herein shall be allowed a credit against the tax liability due under the income tax as determined pursuant to Subsection C of this Section. 

B.  As used in this Section, the following words and phrases shall have the meaning ascribed to them in this Subsection. 

(1)  "Alternative fuel" means a fuel which results in comparably lower emissions of oxides of nitrogen, volatile organic compounds, carbon monoxide, or particulates, or any combination thereof and includes compressed natural gas, liquefied natural gas, liquefied petroleum gas, reformulated gasoline, methanol, ethanol, electricity, and any other fuels which meet or exceed federal clean air standards. 

(2)  "Qualified clean-burning motor vehicle fuel property" means:

(a)  Equipment installed to modify a motor vehicle which is propelled by gasoline so that the vehicle may be propelled by an alternative fuel provided such motor vehicle is registered with the Louisiana Department of Public Safety and Corrections. 

(b)  A motor vehicle originally equipped to be propelled by an alternative fuel but only to the extent of the portion of such motor vehicle which is attributable to the storage of such fuel, the delivery to the engine of such motor vehicle of such fuel, and the exhaust of gases from combustion of such fuel provided such motor vehicle is registered with the Louisiana Department of Public Safety and Corrections. 

(c)  Property which is directly and exclusively related to the delivery of an alternative fuel into the fuel tank of a motor vehicle propelled by such fuel, including compression equipment, storage tanks, and dispensing units for such fuel at the point where such fuel is so delivered, provided such property is located in Louisiana. 

C.  The credit provided for in Subsection A of this Section shall be twenty percent of the cost of the qualified clean-burning motor vehicle fuel property. 

D.  In cases where no credit has been claimed pursuant to Subsection C of this Section and in which a motor vehicle is purchased by a taxpayer with qualified clean-burning motor vehicle fuel property installed by the manufacturer of such motor vehicle and the taxpayer is unable or elects not to determine the exact basis which is attributable to such property, the taxpayer may claim a credit in an amount not exceeding the lesser of twenty percent of ten percent of the cost of the motor vehicle or one thousand five hundred dollars, provided such motor vehicle is registered with the Louisiana Department of Public Safety and Corrections. 

E.  If the tax credit allowed pursuant to Subsection A of this Section exceeds the amount of income taxes due or if there are no state income taxes due on the income of the taxpayer, the amount of the credit not used as an offset against the income taxes of a taxable year may be carried forward as a credit against subsequent income tax liability for a period not to exceed three tax years. 

F.  A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the tax credit that would have been allowed for a joint return. 

Acts 1991, No. 1060, §1, eff. for taxable periods beginning after Dec. 31, 1990; Acts 1992, No. 169, §1, eff. for taxable periods beginning on or after Jan. 1, 1992. 

{{NOTE:  SEE ALSO R.S. 47:38.}} 

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