New July 1, 2021 Sunset Date Alternative Fuel Vehicle Tax Credit

June 28, 2021

Changes to the Alternative Fuel Vehicle Tax Credit Act 385 of the 2021 Regular Session


Act 385 of the 2021 Regular Session accelerates the sunset date for the income tax credit for conversion of vehicles to alternative fuel usage vehicles from January 1, 2022, to July 1, 2021. Act 385 applies to the cost of either (1) qualified clean-burning motor-fuel property related to a conversion of a motor fuel vehicle propelled by gasoline or diesel to a motor vehicle propelled by an alternative fuel or (2) the purchase of a new vehicle originally equipped to be propelled by an alternative fuel.

Any purchases of a new vehicle originally equipped to be propelled by an alternative fuel or the conversion of a motor fuel vehicle made on or after July 1, 2021, will no longer qualify for the credit.

The credit for the building of fueling stations sunsets on January 1, 2022.

For questions concerning this matter, please contact the Louisiana Department of Revenue (LDR) Policy Services Division at (225) 219-2780. For questions concerning a taxpayer’s return on this matter, please contact LDR (855) 307-3893.

View RIB 21-016 for full details. (pdf)


Questions about the content of this Alert should be directed to LCPA State Government Relations Director Linda Babin.