New Proposed Limitations For Alternative Fuel Vehicle Tax Credits
Next week, the revenue department is looking at proposed changes to regulations that make the limitations and qualifications of Louisiana’s alternative fuel vehicle tax credits.
The current law states that the credit can be applied to a listed vehicle that uses different alternative fuels, but also applies to vehicles that use diesel and gasoline that could be classified as a hybrid. The credit has caused headaches for the Jindal administration and has grown much larger than what was expected.
The new proposals that would change the regulations of the credit include limiting the credit program costs to an estimated $10 million. It would also eliminate “flex-fuel” vehicles from being eligible from tax breaks.
Many people have actually written comments stating that the regulations should be re-written.
The department will decide whether to make any changes by November 1st.