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A little known refund can help save you money. It’s the Louisiana Alternative Fuel Tax Credit, a credit that can return 10% of your car’s cost to your wallet. You only have to buy a car that runs on something besides gasoline.

The state recently clarified the rules to point out what qualifies. Hebert’s Town and Country President Mark Herbert says his dealership is working to better inform customers about the tax credit. He says several cars qualify for the credit, so customers don’t need to look too hard for a deal. Herbert points out that flex-fuel vehicles, which can use regular gasoline, are on the list.

“You can run regular fuel, but it is capable of running on E85, which we’re able to produce in the United States a lot cheaper,” he said. That makes paying for E85 fuel cheaper but at another cost.

“It’s a lower price at the pump, but your fuel economy isn’t as good as with regular fuel,” Herbert said.

Tax Manager Patrick Caraway says he and other tax preparers are contacting their clients to let them know about the savings and how to get them.

“You claim the credit on the return for the year on which you purchased the vehicle,” Caraway said.

To claim a car already purchased ask your tax preparer about amending an old return.

“So, for instance if you bought a vehicle on June 15, 2010, you would file an amended Louisiana tax return for the 2010 tax year and claim the credit on that return,” Caraway said.

If your car is more than $30,000, you can only be refunded $3,000. Louisiana’s Alternative Fuel Tax Credit doesn’t just cover flex-fuel vehicles. Those that run on or have been modified to use CNG qualify, as well as certain diesel vehicles.

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