Louisiana Tax Regulations and Laws

Alternative Fuel & Electric Vehicle Purchases

State Excise Tax

CHANGES TO THE SPECIAL FUELS EXCISE TAX - ACT 147:

Act 147 Beginning January 1, 2016, LDR discontinued the annual decal program and instead collect a special fuels tax of $0.16 per gallon equivalent of natural gas at the time fuel is dispensed or delivered into the tank of a motor vehicle based on the special fuel's energy content as follows:

1. Diesel gallon equivalent for liquefied natural gas (LNG) is equal to 6.060 lbs. of LNG.

2. The gasoline gallon equivalent for propane (LPG) shall be energy equivalent rate equal to 73% percent of the state tax per gallon on gasoline and diesel fuel.

3. Gasoline gallon equivalent for compressed natural gas (CNG) is equal to 5.660 lbs. of CNG.

• Dealers must register with LDR and post a $50,000 bond or an amount equal to 3 months’ tax liability, whichever is greater. 
• R.S. 47:818.112 requires the tax to be collected by any person or entity upon the delivery of the fuel into the fuel supply tank of a motor vehicle. R.S. 818.112(B) imposes the tax on the delivery of fuel into the supply tank of a motor vehicle by a special fuel fleet dealer or other dealer not in connection with a sale. 
• The return is due by the 20th of the month.
• Licensed dealers are entitled to a 1/3 of 1% discount for the expense of collecting, accounting for, reporting and timely remitting the taxes collected and for keeping records.
• For gasoline and diesel--Reduces the administrative discount to the supplier for filing returns and remitting payment timely from one and one-half percent to one-half percent and reduces the deduction from 1% to one-third of 1% for licensed distributor or importer. See RIB 15-022.
• Questions about Act 147 can be directed to Shanda McClain 225-219-2780 or the Policy Services Excise email address: [email protected]

Tax Credit for Conversions and Fueling Stations

Tax Credit:  This credit, which expires on January 1, 2022, provides 30 percent of the cost of the qualified clean-burning motor vehicle fuel property being purchased to (1) convert vehicles propelled by gasoline or diesel to an alternative fuel or (2) build alternative fuel fueling or electric vehicle charging stations (only cost directly related to the delivery of an alternative fuel or electricity into the fuel tank of motor vehicles are eligible).

Tax Credit for Conversions and Fueling Stations

Tax Credit:  This credit, which expires on January 1, 2022, provides 30 percent of the cost of the qualified clean-burning motor vehicle fuel property being purchased to (1) convert vehicles propelled by gasoline or diesel to an alternative fuel or (2) build alternative fuel fueling or electric vehicle charging stations (only cost directly related to the delivery of an alternative fuel or electricity into the fuel tank of motor vehicles are eligible).

Pursuant to Act 325, in order 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 occurs in Louisiana.

Alternative Fuel Tax Credit 

Tax credit: A tax credit may be taken in the amount of 50 cents per gasoline gallon equivalent (GGE) of the alternative fuel type. These include propane, natural gas, liquefied hydrogen, P-Series fuel, liquid fuel derived from coal through the Fischer-Tropsch process, and compressed or liquefied gas derived from biomass. It is available for anyone who uses or sells alternative fuel vehicles or motorboats in the United States.