Louisiana residents interested in purchasing natural gas vehicles or fixing their current vehicles to run on natural resources may receive tax incentives from the state if a proposed bill passes.One of the items on both the House of Representatives and the Senate’s agendas is to discuss tax credits today “for the cost of qualified clean-burning motor vehicle fuel property.”The joint bill crosses party lines as Rep. Jane Smith, R-Bossier City, and Sen. Nick Gautreaux, D-Abbeville, proposed the natural resource legislation.”[We] cannot let this opportunity pass us by,” Smith said. “We’re going to be doing a great service to the state and to America.”The bill proposes giving tax credits and incentives if a resident converts a vehicle to natural resources, buys a new natural gas running vehicle or installs equipment to pump the natural gas, Smith said.The state will cover half the cost of purchasing a natural gas vehicle if the bill goes through, Smith said. The bill aims to create incentives and encourage people to begin making the transition to cleaner fuel, Smith said.Northwest Louisiana has trillions of cubic feet of natural gas, and the goal is to use Louisiana’s own resources to end some dependence on foreign oil while encouraging residents to use cleaner burning fuels, Smith said.Both Louisiana Oil and Gas Association and Louisiana Mid-Continent Oil and Gas Association announced support of the tax credits in a news release.LMOGA is supporting the bill because Louisiana has a lot of natural gas, but there is no demand for the market, said LMOGA President Chris John.”By creating a market, it promotes a cleaner environment,” John said.The natural resources market will also create new job opportunities in the state, he said. Louisiana is “the perfect state” for such a program because natural gas is available in large amounts, and the technology is available because some Baton Rouge transits already run on natural gas, he said.”This is a win-win situation for both the consumer and individual,” John said. “We are attempting to create a demand for something we have supply for in the state.”Patrick Martin, who teaches contracts, oil and gas law in the Paul M. Hebert Law Center, said the cleaner fuel movement is growing, but the infrastructure is not yet in place.Martin said he is also concerned about creating the new market that would discourage other uses for natural gas, including home heating and cooking. The country has gone through great natural gas shortage periods, Martin said. Many schools rely on natural gas, and some had to be shut down for a period of time, he said.While diminishing reliance on foreign oil would be positive, there is a risk of running out of natural gas, Martin said. Many places in America with natural reserves are protected by environmental laws, he explained.”Some don’t want to make the choice for cleaner air with more drilling,” he said. – – – -Contact Joy Lukachick at [email protected]
Natural gas bill proposes tax credits for some residents
April 27, 2009