Government Incentives

Until December 2011, the U.S. government offered substantial tax incentives and concessions to owners of alternatively fueled vehicles as well as entrepreneurs interested in building the country’s alternative fuel infrastructure.

The Propane Green Autogas Solutions Act would extend for five years these federal alternative fuel tax credits for propane used as a motor fuel (“autogas”), for vehicles burning propane autogas, and for the propane autogas refueling infrastructure. 

Alternative fuel tax incentives were created in 2005 to stimulate a propane autogas vehicle market to reduce U.S. reliance on foreign oil and reduce environmental impacts associated with gasoline and diesel fuel use. The propane alternative fuel tax incentives were working as designed. More and more business and government fleets nationwide are transitioning to clean domestic propane autogas. Extending these tax credits is not only solid public policy, it’s excellent news for the environment, the economy, and consumers.

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