Limits on alternative fuel tax credit headed to Jindal after revamp

Louisiana lawmakers have revamped the state’s alternative fuel vehicle tax credit program after concerns the law was too broadly written and could be too expensive.
The House gave unanimous final passage on May 30, 2013, to the proposal crafted by Baton Rouge Sen. Dan Claitor before sending it to Gov. Bobby Jindal.
The bill would definitively eliminate flex-fuel cars and trucks, which can burn ethanol but also use gasoline, from qualifying for the credit. The Jindal administration already wrote regulations to prohibit flex-fuel vehicles from being eligible for the tax break.
The program gives a credit of 10% of the cost of the vehicle or $US3,000, whichever is less. Including flex-fuel vehicles could have cost the state an estimated US$240 million a year.
(May 31, 2013)