Propane Laws and Incentives in Pennsylvania

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

State Incentives

Alternative Fuel Vehicle (AFV) Rebate

The Pennsylvania Department of Environmental Protection (DEP) AFV Program offers rebates to assist eligible residents with the cost of the purchase or lease of new or qualifying pre-owned AFVs, including all-electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), compressed natural gas (CNG) vehicles, electric motorcycles, and propane vehicles. Applicants must meet income eligibility requirements for the program and eligible AFV purchase price not exceed $50,000. Rebates are available in the following amounts:

Vehicle Type Rebate Amount
EV (new or pre-owned) $2,000
PHEV (new or pre-owned) $1,500
CNG, Propane, and Electric Motorcycle (new or pre-owned) $500

An additional rebate of $1,000 is available for all applicants that meet the low-income requirement, as defined by the U.S. Department of Health and Human Services. Applications much be received within six months of vehicle purchase. Rebates are awarded on a first-come, first-served basis. For more information, including forms and detailed requirements and restrictions, see the DEP AFV Rebates website.

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

Point of Contact
Joshua Dziubek
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Energy Programs Office
Phone: (717) 705-0374
jdziubek@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. Projects must support:

  • Incremental cost expenses relative to retrofitting vehicles to operate on alternative fuels;
  • Incremental cost expenses to purchase alternative fuel vehicles;
  • The cost to purchase and install the necessary fleet- or home-refueling equipment for alternative fuel vehicles; or,
  • The cost to perform research, training, development and demonstration of new applications or next-phase technology related to alternative fuel vehicles.
Eligible applicants include school districts, municipal authorities, political subdivisions, non-profits, corporations, limited liability companies or partnerships incorporated or registered in the Commonwealth. Priority will be given to businesses located in Pennsylvania; zero emission vehicle projects; medium- and light-duty fleet refueling infrastructure projects; renewable natural gas and infrastructure projects; projects located in environmental justice areas; and minority-, veteran-, or woman-owned businesses. 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)

Points of Contact
Joshua Dziubek
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Energy Programs Office
Phone: (717) 705-0374
jdziubek@pa.gov
Michelle Ferguson
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Energy Programs Office
Phone: (570) 327-3783
miferguson@pa.gov

Diesel Emission Reduction Grants

The Pennsylvania Department of Environmental Protection (DEP) administers the Pennsylvania State Clean Diesel Grant Program for diesel emission reduction projects. Projects are funded by Pennsylvania’s portion of the Volkswagen Environmental Mitigation Trust and the U.S. Environmental Protection Agency’s Diesel Emission Reduction Act (DERA) Program. For more information, including funding availability, see the DEP Driving PA Forward website.

Heavy-Duty Emission Reduction Grants

The Pennsylvania Department of Environmental Protection (DEP) offers grants for the repower or replacement of ferries, tugboats, and freight switcher locomotives with any new U.S. Environmental Protection Agency or California Air and Resource Board-certified diesel, alternative fuel, or all-electric equivalent. For more information, see the DEP Driving Pennsylvania Forward website.

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.