Alternative Fuel Excise Tax

Distributors who sell or use motor fuel, including special fuels, are subject to an excise tax of $0.26 per gallon, which may be adjusted based on vehicle efficiencies and the consumer price index. Motor fuels that are not commonly sold or measured by the gallon and are used in motor vehicles on public highways are taxed according to their gasoline gallon equivalent (GGE).

Effective January 1, 2027, a GGE of electricity may not exceed 11 kilowatt-hours, of hydrogen must be at least 2.2 pounds, of compressed natural gas (CNG) must be at least 110,000 British thermal units, and of liquefied natural gas (LNG) must be at least 6.06 pounds. CNG is defined as a mixture of hydrocarbon gases and vapors, consisting principally of methane in gaseous form that has been compressed for use as a motor fuel. LNG is defined as methane or natural gas in the form of a cryogenic or refrigerated liquid for use as a motor fuel. Propane and special fuels sold in bulk to a licensed consumer distributor are exempt from this tax.

The excise tax for electricity begins January 1, 2027, and only applies to electricity sold at a public electric vehicle (EV) charging stations. The Georgia Department of Revenue may assess, levy, and collect tax for any other motor fuels used on public highways using a GGE rate.

Certain exemptions apply to propane and electricity.

(Reference Georgia Code 48-9-3)