Louisiana Policy Data

Summary

Louisiana offers a conversion tax credit of 50% of cost, or 10% of cost (up to $3,000) for a purchased AFV. Additionally, the state offers station owners an infrastructure tax credit of 50% for installing alternative fueling points or build stations.

CNG vehicles are subject to a special fuels tax of $120 per year for vehicles under 10,0000 lbs, and 80% of the special fuels tax rate in effect (currently $0.20 per gallon - minimum $120).

The Louisiana Legislation passed a resolution in 2010 urging the Governor to leverage natural gas as a primary transportation fuel for the state. Further the legislation created an Alternative Fuel Vehicle Revolving Load Fund to provide loan assistance to Louisiana governmental entities to assist in the costs of converting vehicles in state fleets. The program is still not funded.

The state also implemented limited requirements for AFV purchase through their Division of Administration. That state also deregulated CNG as a motor fuel from the Public Service Commission.

Click here to download the state profile sheet.

Vehicles

Current Estimated Fleet-based NGVs in Louisiana

~60

Vehicles by Fuel Type

Stations

Current Public NGV Fueling Stations - 14 CNG / 1 LNG

Private NGV Fueling Stations - 8 CNG / 1 LNG

Fuel Taxes

Louisiana Motor Fuel Taxation Website

CNG -20.0 ¢ / Gallon (5.660 pounds) - Reference **

LNG -20.0 ¢ / Gallon (6.060 pounds) - Reference **

Gasoline - 20.0 ¢ / Gallon - Reference

Diesel - 20.0 ¢ / Gallon

**The Special Fuels Tax rate is 20.0 ¢ / Gallon, however, the statute requires payment of the tax at 80% of the tax rate.

Louisiana also applies a 0.00125 ¢ / Gallon Inspection Fee. See Current Legislation for Tax information.

IFTA - IFTA taxes are applied to vehicles of 3+ axles, or weighing more than 26,000 pounds. IFTA tax tables can be found here.

Incentives

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Tax Credit

The state offers an income tax credit of 50% of the cost of converting a vehicle to operate on an alternative fuel, 50% of the incremental cost of purchasing an original equipment manufacturer AFV, and 50% of the cost of constructing an alternative fueling station. Only vehicles registered in Louisiana may receive the tax credit. Alternatively, a taxpayer may take a tax credit of 10% of the cost of the motor vehicle, up to $3,000. For the purpose of this incentive, alternative fuels include compressed natural gas, liquefied natural gas, liquefied petroleum gas (propane), biofuel, biodiesel, methanol, ethanol, electricity, and any other fuels that meet or exceed federal clean air standards. (Reference Louisiana Revised Statutes 47:6035)

Natural Gas Vehicle Weight Exemption

A vehicle powered by compressed or liquefied natural gas may exceed the state's gross and axle vehicle weight limits by a weight equal to the difference between the weight of the vehicle with the natural gas tank and a comparable diesel tank system, up to 2,000 pounds. This exemption applies on all state roads and interstate highways. (Reference House Bill 591, 2016, and Louisiana Revised Statutes 32:286)

Laws & Regs

Legislative Session Dates:	March 10 - June 2
Legislature Website:	http://www.legis.la.gov/legis/home.aspx

Support for Growth of Alternative Fuel Sources

The Louisiana Legislature urges the U.S. Congress to take actions to promote the growth of domestic alternative fuel sources, such as natural gas, and reduce dependence on foreign oil. (Reference House Concurrent Resolution 132, 2013)

Authorization for Alternative Fuel Vehicle (AFV) Loans

The Louisiana Department of Natural Resources (Department) will administer the Alternative Fuel Vehicle Revolving Load Fund to provide loan assistance to local government entities, including cities, parishes, school boards, and local municipal subdivisions for the cost of converting conventional vehicles to operate on alternative fuels, or the incremental cost of purchasing new AFVs. Eligible alternative fuels must meet or exceed federal emissions standards and include compressed natural gas, liquefied natural gas (propane), biodiesel, ethanol, methanol, and electricity. The Department must promulgate rules and regulations necessary to implement the loan program. As of September 2011, funding has not been appropriated. (Reference Louisiana Revised Statutes 33:1419.1 - 33:1419.6)

Alternative Fuel Vehicle (AFV) Tax

All licensed on-road vehicles fueled by compressed natural gas or liquefied petroleum gas (propane) are subject to a special fuels tax through the Excise Taxes Division of the Louisiana Department of Revenue. Vehicle owners or operators may pay either an annual flat rate in the amount of $120 per vehicle with a gross vehicle weight rating (GVWR) of less than 10,000 pounds (lbs.) or a variable rate of 80% of the current special fuels tax rate. The owners or operators of a vehicle with a GVWR of more than 10,000 lbs. must pay 80% of the special fuels tax rate in effect, but not less than $120 per vehicle. The owner of any school bus may either pay an annual flat rate of 50% of the regular flat rate or 50% of the variable rate for on-road vehicles with a GVWR of less than 10,000 lbs, whichever is less. The flat rates are based on a special fuels tax rate of $0.16 per gallon and specified miles per gallon values for each vehicle type, and are subject to change. (Reference Louisiana Revised Statutes 47:802.3)

Point of Contact
Special Programs Division
Louisiana Department of Revenue
Phone: (225) 219-0067

Alternative Fuel and Advanced Vehicle Acquisition Requirements

The Louisiana Division of Administration must purchase alternative fuel vehicles (AFVs) capable of operating on alternative fuels that meet or exceed the federal Clean Air Act (CAA) standards, including hybrid electric vehicles (HEVs). Alternative fuels include compressed natural gas, liquefied petroleum gas (propane), reformulated gasoline, methanol, ethanol, advanced biofuels, electricity, and other fuels that meet or exceed the CAA standards. State agency vehicles may be granted a waiver.
Political subdivisions may also purchase or lease AFVs, including HEVs and may acquire infrastructure to fuel AFVs. If the infrastructure is donated, loaned, or provided through an alternative fuel supplier, the supplier is entitled to recoup the cost of the equipment through fuel charges under the supply contract.(Reference House Bill 70, 2011, and Louisiana Revised Statutes 33:1418 and 39:364)

Compressed Natural Gas (CNG) and Propane Regulatory Authority

The Louisiana Department of Natural Resources' Office of Conservation has regulatory authority over CNG safety, including fueling stations and the installation of conversion equipment in a vehicle. Vehicles equipped for, and capable of operating on, liquefied petroleum gas (propane) must have passed a safety inspection from the Louisiana Liquefied Petroleum Gas Commission. (Reference Louisiana Revised Statutes 30:732)

Support for U.S. Postal Service Use of Natural Gas

The Louisiana Legislature urges the U.S. Congress to take actions to operate United States Postal Service vehicles with natural gas to reduce fleet costs and prevent postal office closures and the elimination of Saturday delivery. (Reference House Concurrent Resolution 180, 2013) )

Deregulation of Compressed Natural Gas (CNG) as a Motor Fuel

The Public Service Commission does not regulate the sale of CNG by producers, pipelines, distribution companies, or other persons when it is to be used as a transportation fuel. (Reference Louisiana Revised Statutes 45:1163)

Proposed Bills

2016 Session - Proposed Legislation

HB-196

Amends law relating to number of video poker machines that may be located at truck stop. Number of machines is based on fuel dispensers and gallons sold. New section allows alternative fuel sales to also be taken into consideration. Reference - HB196 Bill History, Reference - HB196 Bill Text Status: enacted 5/10/16.

HB-591

Provides 2,000 pound weight allowance for natural gas vehicles and extends this to all roads and interstate highways. Reference - HB591 Bill History, Reference - HB591 Bill Text Status: passed the House on 4/19/16; reported with amendment by the TRANSPORTATION, HIGHWAYS AND PUBLIC WORKS Committee on 5/2/16; passed Senate 5/5/16 to House for concurrence; scheduled for floor debate on 5/17/16.

SB-323

Companion to HB 196. Amends law relating to number of video poker machines that may be located at truck stop. Number of machines is based on fuel dispensers and gallons sold. New section allows alternative fuel sales to also be taken into consideration. Reference - SB323 Bill History, Reference - SB323 Bill Text Status: passed Senate 4/5/16; failed to pass House 4/26/16; reconsidered by House 4/27/16; passed House on 6/2/16; Senate concurs to House version 6/3/16. Enacted 6/17/16.

2015 Session - Proposed Legislation

HB-366

Amends existing incentives to repeal the refundability of tax credits after 7/1/2015 including for the purchase or conversion of an alternative fuel vehicle. The credit for vehicles and fueling infrastructure are contained in the same section of code but not certain that the change here extends to fueling infrastructure credit. Reference - HB366 Bill History, Reference - HB366 Bill Text

HB-388

Amends the motor fuel tax to include additional 4 cent tax, resulting in rate of 20 cent going to 24 cent. Effective July 1, 2015 and runs until June 30, 2018. Reference - HB388 Bill History, Reference - HB388 Bill Text

HB-443

Amends the tax credits for vehicles so that they are no longer refundable but can be taken over a 5 year period. As with other bills not certain if limited to vehicles or all property. Reference - HB443 Bill History, Reference - HB443 Bill Text

HB-563

Modifies existing tax credits to reduce cost; includes change in the alternative fuel vehicle credit from 50% to 40% of the cost. Reference - HB563 Bill History, Reference - HB563 Bill Text

HB-606

Repeals tax credits including incentive for alternative fuel vehicles and alternative fuel infrastructure. Effective 1/1/2018. Reference - HB606 Bill History, Reference - HB606 Bill Text

HB-607

Repeals tax credits including incentive for alternative fuel vehicles and alternative fuel infrastructure. Effective 1/1/2018. Reference - HB607 Bill History, Reference - HB607 Bill Text

HB-629

Modifies existing tax credits to reduce cost; includes change in the alternative fuel vehicle credit from 50% to 40% of the cost. Reference - HB629 Bill History, Reference - HB629 Bill Text Status: to Conference Committee 6/10/15; 6/11/15 enrolled version appears to have conflicting provisions but one section reduces the tax credit to 36% and also lowers the used AFV credit to 7.2% or $1,500.

HB-637

Modifies the credit for alternative fuel vehicles and fueling infrastructure so that 50% of credit is refundable in first year and remaining may be carried forward and applied against tax in the next 3 years. Reference - HB637 Bill History, Reference - HB637 Bill Text

HB-659

Repeals tax credits including incentive for alternative fuel vehicles and alternative fuel infrastructure. Effective 1/1/2018. Reference - HB659 Bill History, Reference - HB659 Bill Text

HB-712

Amends the motor fuel tax to include additional 4 cent tax, resulting in rate of 20 cent going to 24 cent. Reference - HB712 Bill History, Reference - HB712 Bill Text

HB-736

Amends the special fuel tax so that CNG pays per GGE of 5.660 lb. and LNG pays per 6.060 lb. effective January 1, 2016. Repeals the decal tax. Reference - HB736 Bill History, Reference - HB736 Bill Text Status: ordered engrossed 5/12/15, to the House Committee on Appropriations 5/12/15.

HB-749

Requires legislature to review tax credits and recommend repeal or extension. Reference - HB749 Bill History, Reference - HB749 Bill Text Status: Ordered engrossed 5/20/2015.

SB-91

Companion to HB 366. Reference - SB91 Bill History, Reference - SB91 Bill Text

SB-187

Repeals the alternative fuel vehicle and fueling infrastructure credit as of July 1, 2015. Reference - SB187 Bill History, Reference - SB187 Bill Text Status: amended on Senate floor 5/7 and 5/11 - latest version extends tax credit to alternative fuel vehicles ordered before January 1, 2016 so long as they replace petroleum fueled vehicle. To House Comittee on Ways and Means 5/13/15.

SB-271

Companion to HB 736. Amends the special fuel tax so that CNG pays per GGE of 5.660 lb. and LNG pays per 6.060 lb. effective January 1, 2016. Repeals the decal tax. Reference - SB271 Bill History, Reference - SB271 Bill Text Status: to Cmte on Appropriations 5/28/15; reported from Legislative Bureau with amendments 6/2/15; scheduled for floor debate 6/8/15.

SB-724

Modifies existing tax credits to reduce cost; includes change in the alternative fuel vehicle credit from 50% to 40% of the cost. Reference - SB724 Bill History, Reference - SB724 Bill Text

2014 Session - Proposed Legislation

Louisiana has no proposed NGV legislative bills for 2014 as of this update.

2013 Session - Proposed Legislation

HB-135

Modifies the existing tax credits to make it clear or to provide that the lessor of an alternative fuel is the one who may claim the tax credit. Also provides that the ability to claim tax credits in the case of a used vehicle for which a tax credit has not already claimed also extends to leased used vehicles. Reference - HB135 Bill History, Reference - HB135 Bill Text Pending: House Appropriations Committee

HB-444

Requires legislators to assess the benefit and costs of various tax credits including the atlernative fuel vehicle tax credits and to report no later than March 1, 2015 on whether such tax credits should be extended. Also appears to terminate these credits on Jan. 1, 2016 unless action is taken to extend them. Reference - HB444 Bill History, Reference - HB444 Bill Text Pending: House Appropriations Committee

HB-587

Appears to largely be the same as HB 444; includes the same language concerning the alternative fuel conversion tax credits. Reference - HB587 Bill History, Reference - HB587 Bill Text Pending: House Appropriations Committee

HB-675

Adjusts the tax on motor fuels so that starting in 2014 the $0.16 tax is adjusted for increases in the CPI. Like other bills this one states that the tax cannot be less than $0.16 going forward. Bill notes that the current tax extends to CNG and LNG but makes no changes in the way they are taxed. Reference - HB675 Bill History, Reference - HB675 Bill Text Pending: House Labor and Industrial Relations Committee

HB-681

Changes the definition of alternative fuels from an emission performance standard to simply listing qualifying fuels. New definition identifies natural gas, propane, and non-ethanol biofuels. This definition would be used for purposes of the tax credit program for vehicle conversions. Reference - HB681 Bill History, Reference - HB681 Bill Text Action: 2014-06-12 - Effective date: August 1, 2014.

HB-689

Amends various tax credit provisions including the alternative fuel vehicle credits so that individuals no longer qualify. Effective date 1/1/2014. Reference - HB689 Bill History, Reference - HB689 Bill Text Action: 2014-06-04 - Effective date: August 1, 2014.

HB-696

Imposes a 5% reduction in the value of certain tax credits including the alternative fuel vehicle tax credits for 2014 and 2015. Reference - HB696 Bill History, Reference - HB696 Bill Text Pending: House Education Committee

HB-710

Similar to HB 696 but imposes 10% and 20% reductions in tax credit values over time. Reference - HB710 Bill History, Reference - HB710 Bill Text Pending: House Education Committee

This state was last examined and updated in August, 2016.