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La. Senate backs alternative fuel tax credit limit

BATON ROUGE, La. (AP) -- The Louisiana Senate has agreed to rewrite the state's alternative fuel vehicle tax credit program, after concerns the law had been too broadly written and cost too much.

The proposal by Baton Rouge Sen. Dan Claitor would definitively eliminate "flex-fuel" cars and trucks — which can burn ethanol but also use gasoline — from qualifying for the credit.

Gov. Bobby Jindal's administration wrote regulations to prohibit flex-fuel vehicles from being eligible for the tax break. But Claitor, a Republican, says he wants to make sure the law includes that language as well.

The program gives a credit of 10 percent of the cost of vehicle or $3,000, whichever is less. Including flex-fuel vehicles could have cost the state an estimated $240 million a year.

Claitor's bill heads to the House.