AP News

New La. vehicle tax break regulations take effect


BATON ROUGE, La. (AP) — Louisiana Gov. Bobby Jindal's administration is moving ahead with new regulations that spell out limits for the state's alternative fuel vehicle tax credit.

The final rule governing the tax credit program is being published Thursday and will take effect this week.

The alternative fuel vehicle tax break's cost has grown much larger than estimated and had become a headache for the Republican governor because of differing interpretations about eligibility.

The new regulations will definitively eliminate "flex-fuel" cars and trucks — which can burn ethanol but also use gasoline — from qualifying for the credit.

Including flex-fuel vehicles could have cost the state an estimated $240 million a year.

The program gives a credit of 10 percent of the cost of vehicle or $3,000, whichever is less.


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