Alternative Fuels Tax

The state motor fuel tax on liquefied natural gas (LNG) is imposed based on the diesel gallon equivalent (DGE) and the tax on propane and compressed natural gas (CNG) is based on the gasoline gallon equivalent (GGE). For taxation purposes, one GGE of propane and CNG is equal to 5.75 pounds (lbs.) and 5.66 lbs., respectively, and one DGE of LNG is equal to 6.06 lbs. The North Carolina Department of Revenue will determine the equivalent rate for all other non-liquid alternative fuels. Certain exclusions apply. For more information, including current tax rates, see the Motor Fuels Tax Information website.

(Reference North Carolina General Statutes 105-449.130 and 105-449.136)

Jurisdiction: North Carolina

Type: Laws and Regulations

Enacted: Jun 4, 2014

Amended: Aug 18, 2015

Technologies: Natural Gas

See all North Carolina Laws and Incentives.