Louisiana Natural Gas Laws and Incentives
State Incentives
Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Tax Credit
The state offers an income tax credit worth 50% of the cost of converting a vehicle to operate on an alternative fuel, 50% of the incremental cost of purchasing an original equipment manufactured AFV, and 50% of the cost of constructing an alternative fueling station. Only vehicles registered in Louisiana may receive the tax credit. A taxpayer may instead take a tax credit worth 10% of the cost of the motor vehicle or up to $3,000, whichever is less. For the purpose of this incentive, alternative fuels include compressed natural gas, liquefied natural gas, liquefied petroleum gas, biofuel, biodiesel, methanol, ethanol, electricity, and any other fuels that meet or exceed federal clean air standards. (Reference House Bill 110, 2009, and Louisiana Revised Statutes 47:6035)
State Laws and Regulations
Alternative Fuel Vehicle (AFV) Tax
All licensed on-road vehicles fueled by compressed natural gas or liquefied petroleum gas are subject to a special fuels tax through the Excise Taxes Division of the Louisiana Department of Revenue. Vehicle owners or operators may either pay an annual flat rate in the amount of 80% of $150 per vehicle with a gross vehicle weight rating (GVWR) of less than 10,000 pounds (lbs.), based on a $0.16 per gallon special fuels tax rate, 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. are required to pay 80% of the special fuels tax rate in effect, but not less than 80% of $150 per vehicle, based on a $0.16 per gallon special fuels tax rate multiplied by a specified miles per gallon value for each vehicle type. The owner of any school bus may either pay an annual flat rate in the amount of 50% of $150 per vehicle or a variable rate of 50% of the current special fuels tax rate. (Reference Louisiana Revised Statutes 47:802.3)
Alternative Fuel and Advanced Vehicle Acquisition Requirements
The Commissioner of Administration is required to purchase alternative fuel vehicles capable of operating on alternative fuels that meet or exceed the federal Clean Air Act (CAA) standards, including but not limited to hybrid electric vehicles. Alternative fuels include compressed natural gas, liquefied petroleum gas, reformulated gasoline, methanol, ethanol, electricity, and other fuels that meet or exceed the CAA standards. State agency vehicles may be granted a waiver and additional exemptions may apply. (Reference Louisiana Revised Statutes 39:364)
Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) 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, LPG must have passed a safety inspection from the Louisiana Liquefied Petroleum Gas Commission. (Reference Louisiana Revised Statutes 30:732)
Deregulation of Compressed Natural Gas (CNG) as a Motor Fuel
The sale of CNG by producers, pipelines, distribution companies, or other persons when used as a transportation fuel is not regulated by the Public Service Commission. (Reference Louisiana Revised Statutes 45:1163)
