U.S. Department of Energy | Office of Energy Efficiency and Renewable Energy U.S. Department of Energy Office of Energy Efficiency and Renewable Energy

Alternative Fuel Tax

Compressed natural gas (CNG) and liquefied gas used for operating motor vehicles on public highways are subject to excise tax of $0.21 and $0.22, respectively, imposed on a per gallon basis. For the purposes of this tax, the Tennessee Department of Revenue uses a CNG gallon equivalent factor of 5.66 pounds (lbs.) and a liquefied gas gallon equivalent factor of 6.06 lbs. Liquefied gas includes combustible gas that exists in the gaseous state at 60 degrees Fahrenheit and at a pressure of 14.7 lbs. per square inch, but does not include gasoline, diesel fuel, or CNG. Government agencies are exempt from this tax.

(Reference Tennessee Code 67-3-1101 to 67-3-1102 and 67-3-1113)

Jurisdiction: Tennessee

Type: Laws and Regulations

Amended: Apr 26, 2017

Technologies: Natural Gas

See all Tennessee Laws and Incentives.