HLS 15RS-1091 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 637
BY REPRESENTATIVE STOKES
TAX CREDITS: Provides for the carryforward rather than the refund of a certain portion
of the tax credit for conversion of vehicles to alternative fuels for a limited period of
time
1 AN ACT
2To amend and reenact R.S. 47:6035(E), relative to income tax credits; to provide with
3 respect to the tax credit for conversion of certain vehicles to alternative fuel usage;
4 to provide with respect to authorization for issuance of refunds for tax credits which
5 exceed taxpayer tax liability; to provide for certain limitations; to provide for
6 effectiveness; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:6035(E) is hereby amended and reenacted to read as follows:
9 ยง6035. Tax credit for conversion of vehicles to alternative fuel usage
10 * * *
11 E. (1) For tax years beginning on or after January 1, 2015, January 1, 2016,
12 and January 1, 2017, if the tax credit allowed pursuant to the provisions of this
13 Section exceeds the amount of income taxes due or if the taxpayer owes no state
14 income taxes, any excess of the tax credit over the income tax liability against which
15 the credit can be applied shall constitute an overpayment, as defined in R.S.
16 47:1621(A), and the secretary shall make a refund of fifty percent of the
17 overpayment from the current collections of the taxes imposed by Chapter 1 of
18 Subtitle II of this Title, as amended. The right to a refund of any overpayment shall
19 not be subject to the requirements of R.S. 47:1621(B). The remainder of the unused
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HB NO. 637
1 credit may be carried forward as a credit against subsequent Louisiana income or
2 corporation franchise tax liability.
3 (2) If For tax years beginning on or after January 1, 2018, and each tax year
4 thereafter, the tax credit allowed pursuant to the provisions of this Section exceeds
5 the amount of income taxes due or if the taxpayer owes no state income taxes, any
6 excess of the tax credit over the income tax liability against which the credit can be
7 applied shall constitute an overpayment, as defined in R.S. 47:1621(A), and the
8 secretary shall make a refund of the overpayment from the current collections of the
9 taxes imposed by Chapter 1 of Subtitle II of this Title, as amended. The right to a
10 refund of any overpayment shall not be subject to the requirements of R.S.
11 47:1621(B).
12 * * *
13 Section 2. The provisions of this Act shall be applicable to tax years beginning on
14or after January 1, 2015.
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 637 Original 2015 Regular Session Stokes
Abstract: Changes the tax credit for conversion of vehicles to alternative fuel from a
refundable credit to a credit in which 50% of the amount of the credit above the
liability is refundable and 50% may be carried forward and applied against
subsequent tax liability for 3 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
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HB NO. 637
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 for conversion of vehicles to alternative fuel from a
refundable credit to a credit in which 50% of the amount of the credit above the liability is
refundable and 50% may be carried forward and applied against subsequent tax liability for
3 years.
Applicable to tax years beginning on or after Jan. 1, 2015.
(Amends R.S. 47:6035(E))
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