Expired, Repealed, and Archived Louisiana Incentives and Laws

The following is a list of expired, repealed, and archived incentives, laws, regulations, funding opportunities, or other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality.

Electric Vehicle (EV) Task Force

Expired: 04/10/2023

The Louisiana Senate Committee on Transportation, Highways, and Public Works must convene an EV Task Force (Task Force) to study the economic impact of EVs and recommend legislation to enhance the fiscal benefit of EVs in Louisiana. In September 2022, the Task Force published a report of their findings and recommendations.

(Reference Senate Concurrent Resolution 46, 2022)

Alternative Fuel Vehicle (AFV) Tax Credit

Expired: 01/01/2022

Archived: 09/14/2022

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)

Alternative Fueling Infrastructure Tax Credit

Expired: 01/01/2022

Archived: 09/14/2022

Louisiana offers a nonrefundable income tax credit of 30% of the cost of purchasing and installing qualified clean-burning motor vehicle fuel property. Qualified clean-burning motor vehicle fuel property is defined as:

  • 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 alternative fuel vehicles.
Tax credits are available through January 1, 2022. For the purpose of this incentive, alternative fuels include electricity, natural gas, propane, and non-ethanol based advance biofuel.

(Reference Senate Bill 8, 2021, Louisiana Revised Statutes 47:6035, and Louisiana Administrative Code Title 61, Section 1913)

Vehicle Emissions Reduction and Electric Vehicle (EV) Charging Station Project Funding

Archived: 09/14/2021

The Louisiana Department of Environmental Quality’s (DEQ) Volkswagen Eligible Mitigation Action Project program provides up to 80% of the cost of new diesel or alternative fuel replacements and repowers for eligible government entities. For eligible non-government entities, the Program provides up to 40% of the cost of a new diesel or alternative fuel repower, up to 25% of the cost of a new diesel or alternative fuel vehicle, and up to 75% of the cost of an all-electric repower or replacement, with associated charging infrastructure. Qualifying alternative fuels include, but are not limited to, natural gas and propane. Vehicles that qualify for replacement or repower include:

Model Year Vehicle Type
1992-2009 Class 8 Local Freight Trucks and Port Drayage Trucks
1992-2009 Class 4-7 Local Freight Trucks
2009 or older Class 4-8 School Buses, Shuttle Buses, and Transit Buses

Eligible government and non-government entities may also receive funding for the all-electric repower or replacement of airport ground support equipment, forklifts, and port cargo handling equipment, as well as for the purchase, installation, and maintenance of light-duty EV charging stations.

The program is funded by Louisiana’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including application guidelines, see the DEQ Louisiana Volkswagen Environmental Mitigation Trust website.

Propane Vehicle and Mower Incentive - Louisiana Liquefied Petroleum Gas Commission

Archived: 09/10/2020

Propane vehicle incentives are available to public and private fleets of at least three vehicles. New propane vehicles are eligible for $1,500, and propane vehicle conversions are eligible for up to $800. Additionally, $1,500 is available for each new propane commercial mower and up to $800 for each converted propane commercial mower. Each recipient is limited to four incentive awards, up to $5,000, per year.

All vehicle and mower conversion systems must be certified by the U.S. Environmental Protection Agency or the California Air Resources Board. Conversions must be performed at a participating service dealer. To qualify, existing mowers must have less than 1,000 operating hours and be less than two years old prior to conversion. All vehicles and equipment must operate in Louisiana for at least three years, or until sold. Funds are available on a first-come, first-served basis. Additional terms and conditions apply. For more information, see the Louisiana Liquefied Petroleum Gas Commission website.

Support for Growth of Alternative Fuel Sources

Archived: 08/01/2017

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)

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

Archived: 08/01/2017

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)

Volkswagen Settlement Allocation

Archived: 07/27/2017

The Louisiana Department of Environmental Quality (LDEQ) is soliciting project proposals for the allocation of funds the state receives from the Volkswagen Mitigation Trust Agreement to reduce nitrogen oxides (NOx) emissions. LDEQ will give preference to projects proposed by public agencies that offer long-term benefits to the community and show a significant reduction in NOx, such as the replacement or repowering of publicly-owned school buses or aging state-owned heavy-equipment fleet vehicles with new cleaner vehicles and or new cleaner burning engines. Project proposals are due to LDEQ on July 27, 2017, by 4:30pm CT. For more information, including the proposal requirements and approval process, see the LDEQ Volkswagen Clean Air Act Civil Settlement press release.

Natural Gas Vehicle (NGV) Production Support and Procurement

Archived: 04/01/2016

In 2012, Louisiana joined Arkansas, Colorado, Kentucky, Maine, Mississippi, New Mexico, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming in signing a memorandum of understanding (MOU) to stimulate the production and demand for original equipment manufacturer (OEM) NGVs. The MOU aims to encourage OEMs to offer functional and affordable light- and medium-duty NGVs, aggregate state vehicle procurement through a joint request for proposals (RFP), boost private investment in natural gas fueling infrastructure, and encourage greater coordination between state and local agencies. In 2012, National Association of State Procurement Officials coordinated the solicitation of a joint RFP, which the Oklahoma Department of Central Services (DCS) issued on behalf of the MOU signatories and additional states. As a result, state fleets have access to more affordable NGVs through dealerships now included in state vehicle purchasing bids. For more information, including awarded vehicles by state and vehicle purchase information for state fleets, see the DCS Statewide Contract for NGVs solicitation page.

Compressed Natural Gas (CNG) Project Loans

Archived: 08/01/2015

The Louisiana Department of Natural Resources (DNR) administers a revolving loan program to encourage the development, implementation, and deployment of cost-effective projects, including those involving CNG vehicles and fueling infrastructure. The revolving fund is also intended to create additional employment opportunities and other economic development benefits. Up to $3,000,000 will be available for low-interest rate loans for eligible entities to implement qualified projects. For more information, including program guidelines and application materials, see the DNR Request for Loan Proposals website. (Reference Louisiana Revised Statutes 33:1419.1-33:1419.6)

Biodiesel Equipment and Fuel Tax Exemption

Expired: 06/30/2015

Certain property and equipment used to manufacture, produce, or extract unblended biodiesel are exempt from state sales and use taxes. Unblended biodiesel is defined as B100 fuel that meets ASTM specification D6751. (Reference Louisiana Revised Statutes 47:301)

Advanced Ethanol Fuel Blend Research Grants

Archived: 08/01/2014

The Louisiana Department of Agriculture and Forestry (Department) may award demonstration grants for the purchase of blender pump fueling infrastructure that can dispense advanced ethanol blends of 10% (E10), 20% (E20), 30% (E30), or 85% (E85), and for conducting research and developing guidelines on this infrastructure. The Department may also award grants to purchase vehicles for the purpose of conducting research on advanced ethanol blends and/or the vehicle while operating on advanced ethanol blends. Advanced ethanol is a hydrous or anhydrous ethanol derived from sugar or starch, other than corn starch. Grants are dependent on available funding and further restrictions may apply. No grant funds have been designated for fiscal year 2014 (verified September 2013). (Reference Louisiana Revised Statutes 3:3761 and 3:3763)

Advanced Ethanol Industry Initiative

Archived: 09/01/2013

To develop an advanced (non-corn based) ethanol industry in Louisiana, the following "field-to-pump" requirements must be met:

  1. Development of an ethanol feedstock other than corn that:
    • Is derived solely from Louisiana harvested crops.
    • Is capable of an annual yield of at least 600 gallons of ethanol per acre.
    • Requires no more than 50% of the water required to grow corn.
    • Is tolerant to high temperatures and waterlogging.
    • Is resistant to drought and saline-alkaline soils.
    • Is capable of being grown in marginal soils, ranging from heavy clay to light sand.
    • Requires no more than one-third of the nitrogen required to grow corn.
    • Requires no more than one-half of the energy necessary to convert corn into ethanol.
  2. Development of a small advanced ethanol manufacturing facility network, which reduces the feedstock supply risk, does not burden local water supplies, and provides for a more broad-based economic development.
  3. Expansion of advanced ethanol supply and demand beyond the 10% blend market by blending ethanol with gasoline at the gas station pump. Blender pumps, directly installed and operated at local gas stations by a qualified small advanced ethanol manufacturing facility, should offer the consumer a less expensive substitute for unleaded gasoline in the form of ethanol blends of 10% (E10), 20% (E20), 30% (E30), and 85% (E85).

(Reference Louisiana Revised Statutes 3:3761)

Biodiesel Use in School Buses Study

Archived: 09/01/2013

The State Board of Education and Secondary Education (Board) must study the use of biodiesel in school buses and report its findings to the Louisiana Legislature. The Board will consider the environmental and economic advantages and disadvantages of using biodiesel in school buses. (Reference House Resolution 72, 2011)

National Support for Natural Gas and Natural Gas Vehicles

Archived: 09/01/2013

The Louisiana Legislature supports legislation the U.S. Congress is considering, which would expand the use of domestic natural gas reserves to reduce dependence on imported oil. In addition, the legislature urges federal agencies to purchase, when possible, vehicles that can be converted to run on compressed natural gas, when it is available. (Reference Senate Concurrent Resolution 8, 2010)

Natural Gas Support

Archived: 09/01/2013

The Louisiana Legislature urges the governor to develop proposals and take action to leverage natural gas as a primary transportation fuel for Louisiana residents and businesses. Because natural gas is less expensive than gasoline, it may allow the state to increase the fuel tax to fund necessary transportation infrastructure projects while still resulting in significant cost savings for customers. (Reference House Concurrent Resolution 115, 2010)

Advanced Ethanol Fuel Blend Rate Reduction

Repealed: 06/14/2012

The following was repealed by House Bill 1213, 2012: State government agencies and educational institutions may purchase advanced ethanol blends of 20%, 30%, or 85% (E20, E30, or E85) directly from a qualified small advanced ethanol manufacturing facility at a discounted price of 15% less than the per gallon price of unleaded gasoline. Advanced ethanol is a hydrous or anhydrous ethanol derived from sugar or starch, other than corn starch. (Reference Louisiana Revised Statutes 39:364)

Advanced Ethanol Blend Pilot Program

Expired: 01/01/2012

The Louisiana Department of Agriculture and Forestry (Department) will begin monitoring the blending of fuels containing higher amounts of advanced (non-corn based) ethanol, ranging from 10% to 85% (E10-E85), on a trial basis until January 1, 2012. The Department will also be responsible for monitoring the equipment used for dispensing the fuel. Advanced ethanol is defined as hydrous or anhydrous ethanol derived from sugar or starch, other than corn starch. In addition, hydrous ethanol blends of E10, E20, E30, and E85 will be tested on a trial basis. (Reference Louisiana Revised Statutes 3:3761-3:3762)

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Tax Credit

Repealed: 07/09/2009

The following was repealed by Act No. 469, Section 2, 2009: The state offers an income tax credit worth 20% of the cost of converting a vehicle to operate on an alternative fuel, 20% of the incremental cost of purchasing an Original Equipment Manufacturer (OEM) AFV or hybrid electric vehicle (HEV), and 20% of the cost of constructing an alternative fueling station. Only vehicles registered in Louisiana can receive the tax credit. For the purpose of this incentive, alternative fuels include compressed natural gas, liquefied natural gas, liquefied petroleum gas, methanol, ethanol, electricity, and any other fuels which meet or exceed federal clean air standards. (Reference Louisiana Revised Statutes 47:38 and 47:287.757)

Alternative Fuel Promotion

Archived: 06/30/2008

The Legislature of Louisiana urges the state Department of Economic Development and the Department of Agriculture and Forestry to promote the use of alternative fuels and provide incentives for companies and consumers who use alternative fuels. (Reference Senate Concurrent Resolution 10, 2006)

Alternative Fuel Vehicle (AFV) Acquisition Requirements

Repealed: 07/01/2003

The following was repealed: At least 80% of all vehicles purchased or leased by state agencies and local governments must be capable of being fueled by alternative fuels, or any fuel that meets or exceeds federal Clean Air Act standards. Exemptions may apply to a state agency or a local government that provides evidence that a central refueling station for alternative fuels is not available, or that projected net costs will exceed those associated with continued use of traditional gasoline or diesel fuels over the expected useful life of the equipment or refueling facilities. (Reference Louisiana Revised Statutes 33:1418 and 39:364)