DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 443 Original 2015 Regular Session Leger
Abstract: Changes the tax credit for conversion of vehicles to alternative fuel from a refundable
credit to a credit in which amounts of the credit above the liability may be carried forward
and applied against subsequent tax liability for up to five years.
Present law authorizes an income tax credit for the following:
(1)The retail cost paid to purchase and install qualified clean-burning motor vehicle fuel
property to modify a vehicle propelled by gasoline or diesel so that the vehicle may be
propelled by an alternative fuel.
(2)The cost of that portion of a new motor originally equipped to be propelled by an alternative
fuel which is attributable to the storage of the alternative fuel, the delivery of the alternative
fuel to the engine of the motor vehicle, and the exhaust of gases from combustion of the
alternative fuel.
(3)The cost of property directly related to the delivery of an alternative fuel into the fuel tank
of motor vehicles propelled by alternative fuel.
Present law provides that the amount of the credit shall be equal to 50% of the cost of the qualified
clean-burning motor vehicle fuel property. However, in cases where a new motor vehicle is
purchased with qualified clean-burning motor vehicle fuel property installed by the manufacturer and
the taxpayer is unable to, or elects not to determine the exact cost attributable to such property, the
amount of the credit shall equal 10% of the cost of the motor vehicle or $3,000, whichever is less.
Present law provides that the taxpayer is entitled to a refund for any allowable credit which exceeds
the aggregate tax liability of the taxpayer. Further requires the Dept. of Revenue to refund the
excess tax credit amount to the taxpayer from current tax collections.
Proposed law changes the tax credit from a refundable credit to one in which credit amounts which
exceed taxpayer liability may be carried forward against subsequent income or corporation franchise
tax liability for up to five years.
Applicable to tax years beginning on or after Jan. 1, 2015.
(Amends R.S. 47:6035(E))