Tax Credits Reduce Your Propane Autogas Fuel Price

Dear Partners of ROUSH CleanTech,
Todd Mouw, VP of sales and marketing, ROUSH CleanTech

It’s tax time, which makes many grimace. But not if you’re operating propane autogas-fueled vehicles. Earlier this year, alternative fuel infrastructure and excise tax credits were extended from January 1, 2015 through December 2016.

The excise tax credits are in addition to the historically lower prices of propane autogas compared with diesel and gasoline. For more than 30 years, the cost of propane autogas has been, on average, 30 to 40 percent less than the cost of gasoline, and 40 to 50 percent less than diesel.

The current alternative fuel excise tax credit consists of a 50-cent-per-gallon credit for 2015 and 36-cents-per-gallon for 2016. (The reduction for 2016 reflects an updated energy content calculation of excise tax.).

Many of our customers take advantage of these credits. For example, Flint Mass Transportation Authority in Michigan pays a locked in a rate of 75 cents for propane autogas. With 2015 credits, the price per gallon is 25 cents, and for 2016 the cost will be 39 cents per gallon.

If you’ve installed a fuel station, you can take advantage of a fueling infrastructure credit for up to 30 percent of installation costs, not to exceed $30,000. Propane autogas fueling infrastructure costs less than any other transportation energy source — conventional or alternative.

If you have any questions about these credits, visit the Alternative Fuels Data Center or contact the IRS Excise Tax Branch irs.gov. Thanks for partnering with ROUSH CleanTech.

Sincerely,

Tom Hopkins

Director of Field Operations

Leave a Reply