Clean Fuel for Vehicles - Louisiana Increases Tax Credit to 50%

Governor Bobby Jindal recently announced that he signed Louisiana House Bill 110, legislation that increases personal and corporate income tax credits for use of alternative fuel for motor vehicles, including the use of compressed natural gas (CNG.)

The legislation, authored by Louisiana State Representative Jane Smith (R-Bossier City) and led by Louisiana Senator Nick Gautreaux (D-Abbeville) in the Senate, will increase economic development and investment in Louisiana by encouraging companies to use a fuel source that is clean, abundant, affordable and American.

"Now with proper incentives in place, Louisiana retailers can offer CNG as an alternative fuel to consumers who take advantage of the ability to convert their car or truck or purchase a new vehicle," said Smith.

The new legislation includes provisions to:

• Increase the existing personal or corporate income tax credit from 20% to 50% for purchase of qualified clean burning motor vehicle fuel property, including equipment installed on a motor vehicle and property directly related to the delivery of an alternative fuel.
  
• Increase the existing personal or corporate income tax credit for the purchase of a motor vehicle with qualified clean burning motor vehicle fuel property installed by the manufacturer of such vehicle to 10% of the cost of the vehicle or $3,000, whichever is less.
  
• Establish the existing credit as a refundable income tax credit if no taxes are owed and notes that the tax credits are retroactive to January 1, 2009.
  
• Repeal provisions under current law that prohibit a company or individual who qualifies for Louisiana's Quality Jobs Program from taking advantage of the existing income tax credits for alternative fueled vehicles and equipment.
  
• Gautreaux said, "With potentially the largest natural gas field in the United States, Louisiana is poised to support an energy policy that enhances our national security and promotes a cleaner environment in our country and state. Louisiana now has some of the most aggressive incentives in the country for both consumers and companies to use clean buring, truly American natural gas as transportation fuel."
  
• The legislation was broadly supported with 67 co-authors in the House and 23 co-authors in the Senate. Additionally, a total of 24 entities and organizations passed Resolutions supporting HB 110. They ranged from local governments, chambers of commerce, economic development organizations and environmental groups that represent literally thousands of Louisiana citizens interested in reducing greenhouse gas emissions and building our nation's energy security.

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