BSW Tax Blog

Federal and Louisiana Taxes

Alternative Fuel Vehicle Credit

Lance J. Kinchen, J.D., L.L.M., C.P.A.
Corporate, Tax and Estate Planning

Partner—Baton Rouge
Phone: 225.381.8053 lance.kinchen@bswllp.com

Nicole F. Gould, M.B.A., J.D.
State and Local Tax Controversy

Of Counsel—Baton Rouge
Phone:
225.381.3165 nicole.gould@bswllp.com

The Louisiana refundable income tax credit for 10%, up to $3,000, of the acquisition price of a new alternative fuel vehicles received recent attention.  The Louisiana Department of Revenue issued a “Frequently Asked Questions”  Revenue Information Bulletin on May 3, 2012.  Anyone in the business of selling new alternative fuel vehicles, converting vehicular gasoline or diesel engines to alternative fuel systems , or any person or business procuring new alternative fuel vehicles should take a moment to review the RIB 12-025  together with the Department of Energy’s  list of vehicles assumed to qualify.  While many nuances to the refundable credit exist, it is important to keep in mind that the lessor of 10% of the cost price of the new vehicle or $3,000 can be used to offset the new vehicle acquisition cost.   As much as 50% of the cost of clean burning fuel equipment may qualify for the credit in fuel system conversions.

Please refer to the U.S. Department of  Energy to find a new vehicle presumed to qualify for the credit at:  http://www.afdc.energy.gov/afdc/vehicles/index.html

Please refer to the Louisiana Department of Revenue for more information on how to take and qualify for the credit at:

Revenue Information Bulletin No. 12-025 – Frequently Asked Questions Relating to the Emergency Rule on Alternative Fuel Credit

Revenue Information Bulletin No. 12-026 – Amended Frequently Asked Questions Relating to the Emergency Rule on Alternative Fuel Credit.

LAC:61.I.1912, found at  http://www.revenue.louisiana.gov/forms/lawspolicies/Emergency%20Rule%20-%20Alternative%20Fuel%20Credit.pdf

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