Alternative Fuel Tax Exemptions

Natural gas or propane sold as a motor fuel by a public utility company in a taxable quarter commencing prior to June 30, 2008 is exempt from the gross earnings tax on the sale of petroleum products. Prior to July 1, 2008, petroleum products sold for use as fuel in fuel cells and propane sold for use as a fuel in motor vehicles are exempt from the petroleum gross earnings tax. Finally, between July 1, 1994, and July 1, 2008, compressed natural gas, liquefied petroleum gas, and liquefied natural gas are not subject to the motor fuels tax. (Reference Connecticut General Statutes 12-264, 12-587, and 12-458f)