Louisiana House Bill HB135

Louisiana 2013 Regular Session

• Introduced: 4/8/13
• Refer: 4/8/13

Caption

Expands the income tax credit for alternative fuel vehicles and conversion of vehicles to alternative fuels to include leased vehicles (OR DECREASE GF RV See Note)

Impact

With the proposed extension of the tax credit to leased vehicles, HB135 seems poised to increase the number of alternative fuel vehicles on the roads, potentially resulting in a significant positive environmental impact. The measure hopes to facilitate a broader acceptance of alternative energy sources in the automotive market, which could lead to decreases in greenhouse gas emissions. Additionally, it provides a more inclusive approach by addressing the needs of those who lease vehicles, which is a growing segment of the auto market.

Summary

House Bill 135 aims to expand existing income tax credits related to the use of alternative fuel vehicles. Specifically, the bill extends the current tax credits for the conversion and purchase of qualified clean-burning motor vehicle fuel property to include leased vehicles. This legislative adjustment is designed to encourage greater adoption of alternative fuels by making it financially beneficial for lessors and lessees of vehicles to invest in the necessary modifications for such environmental-friendly technologies. The intent is to provide a stronger incentive to transition away from traditional fuel sources and encourage cleaner emissions.

Sentiment

General sentiment around HB135 appears to be supportive, especially among environmental advocates and industry stakeholders who promote clean energy solutions. Proponents argue that the expansion of tax credits will not only benefit individual consumers and businesses but also contribute to state-wide ecological initiatives and a reduction in reliance on fossil fuels. However, concerns exist regarding the potential financial implications for tax revenue, as expanded exemptions can lead to a decrease in state tax collections, which critics highlight as a potential downside.

Contention

Notable points of contention in discussions surrounding HB135 mainly revolve around budgetary concerns related to the potential decrease in general fund revenue. Some legislators worry that while promoting clean energy is vital, the fiscal health of the state should not be compromised. Others argue about the prioritization of financial incentives towards alternative fuels versus traditional energy sectors which still play a critical role in the state’s economy. This balance between advancing sustainable practices and maintaining fiscal responsibility remains a key topic in the debate surrounding the bill.