The Louisiana Department of Revenue has lost round two in its fight against the refundable $3,000 income tax credit for the purchase of flex fuel vehicles (FFV). Judge Scott Gardner ruled for the taxpayers on December 22, 2014 at the 22nd JDC, affirming the decision granting the La. R.S. 47:6035 credit to FFVs in Bolotte v. LDR, 8007 (Bd. Tax App., May 14, 2014). While we wait for this lead case to complete its appeal process, anyone purchasing a FFV in 2010 has until December 31, 2014 to amend their 2010 tax return to claim the credit. 2011 purchasers have until December 31, 2013 to amend.
Lance J. Kinchen, J.D., L.L.M., C.P.A.
Corporate, Tax and Estate Planning
Nicole F. Gould, M.B.A., J.D.
State and Local Tax Controversy
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