Propane's Tax Benefits
There are currently two
types of tax credits
available for those who
use propane as a motor
fuel. These tax credits
provide very favorable
economics for owning and
operating propane
powered vehicles.
The
first type of tax credit
applies to propane
gallon usage operating
vehicles. This is a
federal tax credit and
applies to
propane-powered
forklifts and any
highway vehicle that
runs on propane. The
federal tax credit for
propane motor fuel is
currently $.50 per
gallon.
Download tax credit
summary
The
second type of tax
credit applies to the
purchase of a dedicated
propane fueled vehicle
or the conversion of a
vehicle to run 100% on
propane. Depending on
the vehicle size and
cost of the propane
option or conversion,
there is a federal tax
credit available for up
to 50% of the propane
fuel option or
conversion cost.
Currently Ford offers a
dedicated OEM
propane-powered Roush
F-150. GM has several
medium duty trucks with
OEM propane-powered
engines. All of these
models qualify for the
federal tax credits. The
state of Georgia also
offers a 10% tax credit
on the purchase or
conversion of
propane-powered
vehicles. For more
information, visit the
U.S. Department of
Energy's Alternative
Fuels and Advanced
Vehicles Data Center.
The first type of tax credit applies to propane gallon usage operating vehicles. This is a federal tax credit and applies to propane-powered forklifts and any highway vehicle that runs on propane. The federal tax credit for propane motor fuel is currently $.50 per gallon.
Download tax credit summary
The second type of tax credit applies to the purchase of a dedicated propane fueled vehicle or the conversion of a vehicle to run 100% on propane. Depending on the vehicle size and cost of the propane option or conversion, there is a federal tax credit available for up to 50% of the propane fuel option or conversion cost.
Currently Ford offers a dedicated OEM propane-powered Roush F-150. GM has several medium duty trucks with OEM propane-powered engines. All of these models qualify for the federal tax credits. The state of Georgia also offers a 10% tax credit on the purchase or conversion of propane-powered vehicles. For more information, visit the U.S. Department of Energy's Alternative Fuels and Advanced Vehicles Data Center.