Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Tax Credit

Louisiana offers a nonrefundable income tax credit of 30% of the cost of qualified clean-burning motor vehicle fuel property, including:

  • The purchase and installation of certified fuel system conversion equipment to convert a gasoline or diesel vehicle to operate on an alternative fuel;
  • Alternative fueling delivery equipment including compression equipment, storage tanks, and dispensing units for alternative fuel at the point where the fuel is delivered, and;
  • Purchase of property which is directly related to the delivery of an alternative fuel for use in AFVs.
For new original equipment manufacturer AFVs, 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 these incentives, alternative fuels include natural gas, propane, biofuel, biodiesel, methanol, ethanol, and electricity. Electric vehicles must have at least four wheels, be used primarily on-road, be able to attain a minimum speed of 55 miles per hour, have a minimum battery capacity of four kilowatt-hours, and be capable of being charged externally. To be eligible for the credit for costs associated with converting a vehicle to alternative fuel usage, commercial vehicles must be registered and primarily used in Louisiana for four years after the date of the conversion. For purposes of this requirement, a commercial vehicle is deemed primarily used in Louisiana when 80% of the miles traveled in the four years after the conversion occur in Louisiana. Restrictions may apply.

(Reference Louisiana Revised Statutes 47:6035 and Louisiana Administrative Code Title 61, Section 1913)