Louisiana Laws and Incentives for Vehicle Owner/Driver

The list below contains summaries of all Louisiana laws and incentives related to Vehicle Owner/Driver.

State Incentives

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Tax Credit

The state offers an income tax credit of 50% of the cost of converting a vehicle to operate on an alternative fuel, 50% of the incremental cost of purchasing an original equipment manufacturer dedicated AFV, and 50% of the cost of alternative fueling equipment. AFVs must be registered in Louisiana to receive the tax credit. Alternatively, a taxpayer may take a tax credit of 10% of the cost of the motor vehicle, up to $3,000. For the purpose of this incentive, alternative fuels include compressed natural gas, liquefied natural gas, liquefied petroleum gas (propane), biofuel, biodiesel, methanol, ethanol, electricity, and any other fuels that meet or exceed federal clean air standards. Restrictions apply. (Reference Louisiana Administrative Code Title 61, Section 1913, and Louisiana Revised Statutes 47:6035)

Laws and Regulations

Propane Self-Service Fueling Station Regulations

Propane retailers may offer self-service, coin-operated, credit card, or any other pump-activating fuel dispensing device to the general public. The retailer must post readily-visible step-by-step instructions to the operator. In addition, the Louisiana Liquefied Petroleum Gas Commission must promulgate and adopt rules and regulations to provide education and instruction on the safe operation and use of automatic fuel dispensing devices. (Reference House Bill 1061, 2012, and Louisiana Revised Statutes 40:1853.1)

Natural Gas Support

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)

Alternative Fuel Vehicle (AFV) Tax

All licensed on-road vehicles fueled by compressed natural gas or liquefied petroleum gas (propane) are subject to a special fuels tax through the Excise Taxes Division of the Louisiana Department of Revenue. Vehicle owners or operators may pay either an annual flat rate in the amount of $120 per vehicle with a gross vehicle weight rating (GVWR) of less than 10,000 pounds (lbs.) 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. must pay 80% of the special fuels tax rate in effect, but not less than $120 per vehicle. The owner of any school bus may either pay an annual flat rate of 50% of the regular flat rate or 50% of the variable rate for on-road vehicles with a GVWR of less than 10,000 lbs., whichever is less. The flat rates are based on a special fuels tax rate of $0.16 per gallon and specified miles per gallon values for each vehicle type, and are subject to change. (Reference Louisiana Revised Statutes 47:802.3)

Low-Speed Vehicle Access to Roadways

Low-speed vehicles may only be used on roads that have a posted speed limit of up to 35 miles per hour (mph), but may cross a highway with a posted speed limit greater than 35 mph. The low-speed vehicle must be equipped with safety equipment as specified in Title 49 of the Code of Federal Regulations, section 571.500, and must be registered with the Louisiana Office of Motor Vehicles. (Reference Louisiana Revised Statutes 32:300.1)

Compressed Natural Gas (CNG) and Propane 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, liquefied petroleum gas (propane) must have passed a safety inspection from the Louisiana Liquefied Petroleum Gas Commission. (Reference Louisiana Revised Statutes 30:732)