Legislation that would increase income tax credits and incentives for purchasers of compressed natural gas (CNG), liquefied natural gas (LNG) and other alternative fuel vehicles will be considered by the Louisiana legislature when it convenes in Baton Rouge next month.

The legislation will include provisions to increase to as much as $3,000 an existing income tax credit for the purchase of qualified vehicles and to increase from 20% to 50% an existing income tax credit for the purchase of equipment to convert gasoline-powered vehicles to CNG or other alternative fuels. The legislation would also provide tax credits to companies that install equipment to fuel alternative fuel vehicles.

The legislation was co-authored by Sen. Nick Gautreaux (D-Abbeville) and Rep. Jane Smith (R-Bossier City). If passed into law it would benefit taxpayers and consumers, and would be good for energy companies tapping into Louisiana’s Haynesville Shale, the lawmakers claim.

“With potentially the largest natural gas field in the United States, Louisiana is poised to support an energy policy that enhances our national security and promotes a cleaner environment in our country and state,” said Gautreaux. “What we need now are incentives for both consumers and companies so all can reap the benefits.”

The legislation is similar to a bill under consideration in Oklahoma that would provide tax credits to Oklahomans who buy CNG, LNG and other alternative fuel vehicles and to companies building infrastructure for the vehicles (see Daily GPI, March 24). That bill has already been passed by the Oklahoma House and is under consideration by the Senate.

On Wednesday Utah Gov. Jon Huntsman signed into law a bill allowing that state’s Public Service Commission to continue to authorize a gas rate for natural gas vehicles that is below the actual cost of service, a move meant to encourage the use of natural gas as a transportation fuel (see Daily GPI, March 27).

©Copyright 2009Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.