Louisiana Natural Gas Laws and Incentives

State Incentives

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Tax Credit

The state offers an income tax credit worth 20% of the cost of converting a vehicle to operate on an alternative fuel, 20% of the incremental cost of purchasing an Original Equipment Manufacturer (OEM) AFV or hybrid electric vehicle (HEV), and 20% of the cost of constructing an alternative fuel fueling station. For the purchase of an OEM AFV or HEV, the tax credit cannot exceed 2% of the total cost of the vehicle or $1,500, whichever is less. Only vehicles registered in Louisiana can receive the tax credit. For the purpose of this incentive, alternative fuels include compressed natural gas, liquefied natural gas, liquefied petroleum gas, methanol, ethanol, electricity, and any other fuels which meet or exceed federal clean air standards. (Reference Louisiana Revised Statutes 47:38 and 47:287.757)

State Laws and Regulations

Alternative Fuel Vehicle (AFV) Tax

All licensed on-road vehicles fueled by compressed natural gas, liquefied natural gas, or liquefied petroleum gas are subject to a special fuels tax through the Excise Taxes Division of the Louisiana Department of Revenue. Vehicle owners or operators may either pay an annual flat rate of $150 per vehicle with a gross vehicle weight rating of less than 10,000 pounds, or a variable rate based on the current special fuels tax rate. (Reference Louisiana Revised Statutes 47:802.3)

Alternative Fuel Promotion

The Legislature of Louisiana urges the state Department of Economic Development and the Department of Agriculture and Forestry to promote the use of alternative fuels and provide incentives for companies and consumers who use alternative fuels. (Reference Senate Concurrent Resolution 10, 2006)

Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) Regulatory Authority

The Louisiana Department of Natural Resources' Office of Conservation has regulatory authority over CNG safety, including refueling stations and the installation of conversion equipment in a vehicle. The Louisiana Liquefied Petroleum Gas Commission must make safety inspections of vehicles equipped for and capable of operating on LPG. (Reference Louisiana Revised Statutes 30:732)

Deregulation of Compressed Natural Gas (CNG) as a Motor Fuel

The sale of CNG by producers, pipelines, distribution companies, or other persons when it is used as a transportation fuel is not regulated by the Public Service Commission. (Reference Louisiana Revised Statutes 45:1163)

Utilities/Private Incentives

Natural Gas Infrastructure Technical Assistance

Entergy offers preliminary feasibility studies for CNG refueling stations and vendor selection on a case-by-case basis.