Overview
Propane vehicles are eligible for a number of federal and state incentives that reward consumers for making propane their engine fuel of choice. Taking advantage of these incentives can ultimately offset the cost of a propane vehicle conversion.
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The Energy Policy Act of 2005
This act provides a federal tax credit for the purchase of new propane-fueled vehicles or vehicles that have been converted to use propane.
Alternative Fuel Tax Exemption
This exemption applies to the purchase of propane when it is being used for engine fuel in a motor vehicle, such as the F-150, that is reserved for use on a farm for farming purposes; for exclusive use by a nonprofit educational organization; in certain intercity and local buses; in a school bus; or for exclusive use by a state, political subdivision of a state, or Washington, D.C.
Qualified Alternative Fuel Motor Vehicle Tax Credit:
The QAFMV provides a $2,500 tax credit toward the purchase of a 2008 Roush propane-fueled F-150.
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