The Energy Policy Act of 2005
The Energy Policy Act of 2005 amends the Energy Policy Act of 1992 to identify propane as an alternative fuel, making it eligble for various tax incentives and programs.
One of these incentives is the Qualified Alternative Fuel Motor Vehicle tax credit, which provides a tax credit for up to 80 percent of a vehicle’s allowable incremental cost. The credit is applicable for the purchase of new propane-fueled vehicles or vehicles that have been converted to use propane.
Congress passed the original Energy Policy Act in 1992 to decrease the nation's dependence on foreign oil and enhance energy security. EPAct mandates that federal, state, and fuel provider fleets must purchase alternative fuel vehicles (AFVs). The Alternative Fuel Transportation Program; Alternative Compliance rule (10 Code of Federal Regulations Part 490) implements EPAct AFV requirements as they apply to states and alternative fuel providers.
Because propane is clean burning, and 90 percent of propane used in this country is domestically produced, propane vehicles represent the ideal solution for fleet operators who must comply with these mandates.