Alternative Fuels Tax and Reporting

Alternative fuel dealers must sell liquefied natural gas (LNG) and propane used as motor fuel in diesel gallon equivalents (DGEs). For taxation purposes, LNG and propane must be reported as DGEs and are taxed at a rate of $0.215 per DGE. One DGE is equal to 6.06 pounds (lbs.) of LNG and 6.41 lbs. of propane. Alternative fuel dealers must sell compressed natural gas (CNG) used as motor fuel in gasoline gallon equivalents (GGEs). CNG must be reported in GGEs and is taxed at a rate of $0.19 GGE. One GGE is equal to 5.66 lbs. of CNG. (Reference 35 Illinois Compiled Statutes 505/1.8 – and 505/1.2)