Louisiana Revenue Department Issues Proposed Rule for Tax Break
BATON ROUGE, La. (AP) — The state Department of Revenue is proposing new regulations governing Louisiana’s alternative fuel vehicle tax credit to limit estimated program costs to $10 million a year.
That’s far higher than initial estimates of the tax break’s price tag.
But the move to eliminate “flex-fuel vehicles” — which had previously been swept into eligibility with a rule later rescinded by Gov. Bobby Jindal — will keep the tax break from costing the state up to $250 million a year, according to a financial estimate.
The department issued an emergency rule in April governing the tax credit, which enlarged the list of qualifying vehicles by sweeping in flex-fuel cars and trucks with the ability to burn ethanol.
Jindal scrapped the rule in June amid complaints it could be a budget-buster.