Alternative Fuel Vehicle (AFV) Tax Credit

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Louisiana offers a nonrefundable income tax credit for new original equipment manufacturer AFVs purchased before July 1, 2021. A taxpayer may take a tax credit of 10% of the cost of the motor vehicle, up to $2,500. To qualify for the tax credit, vehicles must have a dedicated alternative fuel storage and delivery system and be registered in Louisiana. For the purpose of this incentive, alternative fuels include natural gas, propane, biofuel, biodiesel, methanol, ethanol, and electricity. (Reference Senate Bill 8, 2021, Louisiana Revised Statutes 47:6035, and Louisiana Administrative Code Title 61, Section 1913)