• Preserve Your Louisiana Income Tax Refund Claim Now
  • June 11, 2014 | Authors: David R. Cassidy; Nicole F. Gould; David R. Kelly
  • Law Firm: Breazeale, Sachse & Wilson, L.L.P. - Baton Rouge Office
  • A taxpayer who purchased a new flex fuel vehicle (FFV) between January 2010 and July 1, 2013, may claim the La. alternative fuel vehicle income tax credit (10% of the purchase price up to $3,000) through an amended Louisiana income tax return.The right to claim a refund for income tax year 2010 will prescribe (expire) on December 31, 2014. A credit for a 2011 purchase will prescribe in 2015, and so on. Because the right to claim the credit for a 2010 flex fuel vehicle purchase will prescribe this December 31, 2014, we are advising our clients to act now to preserve their claim.

    On June 14, 2012, Governor Jindal put the brakes on the alternative fuel income tax credit insofar as it applies to the purchase of a FFV. However, the law providing the credit, La. R.S. 47:6035, was not amended to state as much until July 2013. Any taxpayer claiming the credit (no matter the tax year) after the Governor’s announcement was denied despite similar taxpayers having been approved on or before June 13, 2013. In a May 2014 decision, the Louisiana Board of Tax Appeals reversed such a denial and the case is now on appeal. The Louisiana Board of Tax Appeals found that certain FFV’s qualified for the section 6035 credit after all.

    Because the issue may be tied up on appeal for some time longer, we are advising our clients to preserve their claim for the credit. When LDR denies the refund claim (or disallows the credit taken against a tax liability), a petition for review with the Louisiana Board of Tax Appeals should be filed promptly, as the right to do so prescribes in 60 days from the denial. The Board does not charge a filing fee unless the claim is worth more than $10,000. Taxpayers may be represented at the BTA by a lawyer, a CPA or pro se.

    We have advised our clients that previously claimed the credit, but did not appeal the denial, to file a claim against the state with the Board of Tax Appeals. For example, a person making a 2012 claim for the credit for a 2010 FFV purchase was more than likely denied in March 2013. If it wasn’t appealed to the Board of Tax Appeals before June 2013, the taxpayer cannot appeal the denial now, but must instead file a claim against the state for payment. The biggest difference between this action and one appealing a refund denial is that a refund will be promptly paid by LDR but a claim against the state must be paid through legislative appropriation.