Autogas Incentives break down into three categories: tax credits or rebates, low-interest loan programs, and tax exemptions. For private fleet managers, tax credits and rebates are vital because they help reduce the upfront cost of conversion. Low-interest loan programs can help fleets, which are on a fixed budget, finance the upfront conversion cost. Exemption from or reduced state fuel taxes are often added into the state incentive package to offer more incremental savings over time.
When it comes to alternative fuel incentives, one of the biggest mistakes a fleet manager can make is waiting for a better deal to come along. Incentives are vital to increasing the number of alternative fuel vehicles on the road. However, ensuring that fleets take advantage of such subsidies is equally as important.
With excellent incentives in place across our region to switch to alternative fuels, the time to convert is now. By working closely with their fuel provider, fleet managers can ensure they’re taking full advantage of existing programs. See below for a list of incentives offered by your state.
| State | Name of Program | Explanation |
|---|---|---|
| FED | Alternative Fuel Excise Tax Credit | Vehicles operating on propane autogas are eligible for a $.36 per gallon tax credit. (Mono Fueled & Bi-Fueled Vehicles Included) |
| AZ | Vehicle License Tax Reduction for AFVs | Reduced Arizona state vehicle license tax for Alternative Fueled Vehicles. (Mono Fueled & Bi-Fueled Vehicles Included) |
| AZ | AFV Parking Incentive | Individuals driving an AFV may park without penalty in parking areas that are designated for carpool operators. (Mono Fueled Vehicles Only) |
| AZ | State Gasoline Motor Vehicle Fuel Tax Rate | Vehicles operating on an alternative fuel are exempt from the State Vehicle Fuel Tax. (Mono Fueled Vehicles Only) |
| AZ | HOV Lane Access | Alternative Fueled Vehicles are permitted to use HOV lanes regardless of the number of occupants. (Mono Fueled Vehicles Only) |
| CA | WPGA Propane Vehicle Rebates | Rebate of $500 for the purchase of a new propane autogas vehicle or the conversion of an existing vehicle to propane autogas. Rebates are offered by the Western Propane Gas Association and available through December 31, 2015 or until program funds are exhausted. (Mono Fueled & Bi-Fueled Vehicles Included) |
| CA | State Gasoline Motor Vehicle Fuel Tax Rate | Vehicles operating on an alternative fuel pay a reduced State Vehicle Fuel Tax rate. (Mono Fueled & Bi-Fueled Vehicles Included) |
| OR | ODOE Business Energy Incentive Program (AVF Tax Credit) | Tax credits are available for fleet owners, transit services or owners of AFV infrastructure. Fleets may apply for a maximum credit of 35% on the purchase or lease of an AFV conversion. On purchase of new vehicle, fleet owner must remove a non-AFV from fleet. On a conversion, the credit applies to the actual cost of the conversion. (Mono Fueled & Bi-Fueled Vehicles Included) |
| OR | PPGA On-Road Propane Vehicle Rebate Program | Rebate of $1000 for the purchase of a new propane autogas vehicle or the conversion of an existing vehicle to propane autogas. Rebates are offered by the Pacific Propane Gas Association and available through December 31, 2015 or until program funds are exhausted. (Mono Fueled & Bi-Fueled Vehicles Included) |
| OR | State Energy Loan Program (SELP) | SELP offers low-interest loans for qualified projects which can include fueling infrastructure and converting fleet vehicles. Eligible alternative fuel projects include AFV fueling infrastructure, and fleet vehicle conversions. Loan terms and conditions vary. (Mono Fueled & Bi-Fueled Vehicles Included) |
| OR | State Gasoline Motor Vehicle Fuel Tax Rate | Vehicles operating on an alternative fuel may elect to pay an En Lieu fee at the time of registration which exempts them from the State Vehicle Fuel Tax. (Mono Fueled & Bi-Fueled Vehicles Included) |
| UT | Clean Fuel Vehicle Grant and Loan Program | Loans and grants are available to assist public and private entities to cover the costs of converting or purchasing AFV’s. Low-interest loans are available to cover the cost of converting vehicles to an alternative fuel or the incremental cost on the purchase of an OEM AFV. Grants are available to cover 50% of the conversion cost of an AFV (minus the amount of any tax credit claimed) or the incremental cost on the purchase of an OEM AFV. Low interest loans or grants are also available to cover the cost of alternative fuel refueling equipment. The combined amount approved for all loans and grants in a year will not exceed $500,000 (divided equally). Maximum loan or grant amount for any one project is $200,000, the minimum is $5,000. The max amount of vehicles that can be converted by any fleet is 100. (Mono Fueled & Bi-Fueled Vehicles Included) |
| UT | Alt. Fuel and Fuel-Efficient Vehicle Tax Credit | An income tax credit of up to $1500 is available for the purchase of an AFV or the conversion of an existing vehicle to an alternative fuel. (Mono Fueled & Bi-Fueled Vehicles Included) |
| UT | State Gasoline Motor Vehicle Fuel Tax Rate | Vehicles operating on an alternative fuel are exempt from the State Vehicle Fuel Tax. (Mono Fueled & Bi-Fueled Vehicles Included) |
| UT | HOV Lane Access | Based on a yearly cap, vehicle owners operating an Alternative Fueled Vehicle can apply for a permit to use HOV lane regardless of the number of occupants. Permits are issued on a random basis. (Mono Fueled Vehicles Only) |
| WA | AFV Sales and Use Tax Exemption | Certain new or used vehicles that are converted to operate on an EPA certified system are exempt from state motor vehicle sales and use taxes. Qualified vehicles must “operate exclusively on Alternative Fuels”, meet the California motor vehicle emissions standards, comply with the rules of the Washington Department of Ecology, and have a fair market value less than $35,000. This tax exemption expires July 1, 2019. (“operate exclusively on Alternative Fuels” has been interpreted to not exclude bi-fuel systems. Rather, it is interpreted to exclude mixed fuel systems. On a bi-fuel system, when the vehicle is switched to run on the AFV, the vehicle is “operating exclusively on Alternative Fuels”) |
| WA | State Gasoline Motor Vehicle Fuel Tax Rate | Vehicles operating on an alternative fuel must register as an Alternative Fueled vehicle and pay an En Lieu fee which exempts them from the State Vehicle Fuel Tax. (Mono Fueled & Bi-Fueled Vehicles Included) |
| WA | Clean Fuels Vehicle Incentive Act | Tax credits of up to $10,000 are available for the purchase of a new propane autogas vehicle or the conversion of an existing vehicle to propane autogas for certain private commercial fleets. (Mono Fueled & Bi-Fueled Vehicles Included) (Program Start Date 1/1/2016) |
| WA | AFV and HEV Emission Inspection Exemption | Dedicated propane vehicles are exempt from state emissions control inspections. (Mono Fueled & Bi-Fueled Vehicles Included) |
| WA | PPGA On-Road Propane Vehicle Rebate Program | Rebate of $1000 for the purchase of a new propane autogas vehicle or the conversion of an existing vehicle to propane autogas. Rebates are offered by the Pacific Propane Gas Association and available through December 31, 2015 or until program funds are exhausted. (Mono Fueled & Bi-Fueled Vehicles Included) |
*Incentives are listed for marketing purposes only and do not include ALL terms or conditions associated. Please consult your tax professional for complete details*