Propane Laws and Incentives in Pennsylvania

The list below contains summaries of all Pennsylvania laws and incentives related to propane.

State Incentives

Alternative Fuel Corridor Infrastructure Funding

The Alternative Fuels Incentive Grant (AFIG) Program provides reimbursement grants for the installation of alternative fuel infrastructure along Pennsylvania interstate highway corridors. Grants are available for reimbursement of 50% of the cost, up to $500,000, to install public electric, hydrogen, propane, and compressed natural gas fueling infrastructure along "Signage Ready" or "Signage Pending" highway corridors in Pennsylvania, as defined by the U.S. Department of Transportation. Eligible applicants include Pennsylvania municipal authorities, political subdivisions, non-profit entities, corporations, and limited liability companies or partnerships incorporated or registered in the Commonwealth. Applicants may submit more than one application if they are seeking funding to install fueling installations on separate highway segments. For more information, including grant guidelines and current application periods, see the AFIG Program website.

Points of Contact
Josh Dziubek
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Energy Programs Office
Phone: (717) 783-8411
jdziubek@pa.gov
Mark Hand
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Energy Programs Office
Phone: (717) 705-4797
mhand@pa.gov

Alternative Fuel Vehicle (AFV) Rebate

The AFV Program offers rebates to assist eligible residents with the incremental cost of the purchase or lease of new AFVs, including all-electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), hydrogen fuel cell electric vehicles (FCEVs), natural gas vehicles (NGVs), and propane vehicles. Eligible vehicles must have a total purchase price not exceeding $60,000. Rebates are available in the following amounts:

Vehicle TypeRequirementRebate Amount
EV, PHEV, electric motorcycle, and low-speed EVBattery capacity greater than or equal to 85 kilowatt hours (kWh)$2,000
Battery capacity less than 85 kWh and equal to or greater than 30kWh$1,750
Battery capacity greater than or equal to 10kWh and less than 30kWh$1,000
FCEVOriginal equipment manufacturer (OEM) or certified retrofit$2,000
Natural gas and propaneOEM or certified retrofit$1,000
One-time preowned AFV75,000 miles or less$750

An additional rebate of $500 is available for all vehicles if an applicant meets the low-income requirement, as defined by the U.S. Department of Health and Human Services. Rebates are awarded on a first-come, first-served basis. For more information, including forms and detailed requirements and restrictions, see the AFV Rebates website.

(Reference Title 73 Pennsylvania Statutes, Chapter 18E, Section 1647.3)

Points of Contact
Josh Dziubek
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Energy Programs Office
Phone: (717) 783-8411
jdziubek@pa.gov
Walt Dinda
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Energy Programs Office
Phone: (717) 783-8411
wdinda@pa.gov

Alternative Fuels Incentive Grant (AFIG) Program

The AFIG Program provides financial assistance for innovative, advanced fuel and vehicle technology projects. Projects that result in product commercialization and the expansion of Pennsylvania companies are favored in the selection process. Eligible applicants include school districts, municipal authorities, political subdivisions, non-profits, corporations, limited liability companies or partnerships incorporated or registered in the Commonwealth to support:

  • Incremental cost expenses relative to retrofitting vehicles to operate on alternative fuels as a bi-fuel, dual-fuel, hybrid or dedicated vehicle
  • Incremental cost expenses to purchase bi-fuel, dual-fuel, hybrid or dedicated vehicles
  • The cost to purchase and install the necessary fleet refueling or home-refueling equipment for bi-fuel, dual-fuel, hybrid or dedicated vehicles
  • The cost to perform research, training, development and demonstration of new applications or next-phase technology related to alternative fuel vehicles.
For more information, including forms and detailed requirements and restrictions, see the AFIG Program website.

(Reference Title 73 Pennsylvania Statutes, Chapter 18E, Section 1647.3)

Point of Contact
Michelle Ferguson
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Energy Programs Office
Phone: (570) 327-3783
miferguson@pa.gov

Laws and Regulations

Alternative Fuels Tax

Alternative fuels used to propel vehicles of any kind on public highways are taxed at a rate determined on a gasoline gallon equivalent basis. For more information, including applicable tax rates, see the Pennsylvania Department of Revenue Motor and Alternative Fuel Taxes website. Certain exemptions apply. (Reference Title 75 Pennsylvania Statutes, Part VI, Chapter 90, Section 9004)

More Laws and Incentives

To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.