Search Federal and State Laws and Incentives

Alternative Fuel Vehicle (AFV) Funding

The Alternative Fuels Incentive Grant (AFIG) Program provides financial assistance for qualified projects; information on alternative fuels, AFVs, and hybrid electric vehicles; and advanced vehicle technology research, development, and demonstration. Projects that result in product commercialization and the expansion of Pennsylvania companies are favored in the selection process.

The AFIG Program also offers rebates to assist eligible residents with the incremental cost of the purchase or lease of new AFVs, including all-electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), hydrogen fuel cell electric vehicles (FCEVs), natural gas vehicles (NGVs), and propane vehicles. Eligible vehicles must have a total purchase price not exceeding $60,000. Rebates are available in the following amounts:

An additional rebate of $500 is available for all vehicles if an applicant meets the low-income requirement, as defined by the U.S. Department of Health and Human Services. Rebates are awarded on a first-come, first-served basis. For more information, including forms and detailed requirements and restrictions, see the AFIG Program and AFV Rebates websites. (Reference Title 73 Pennsylvania Statutes, Chapter 18E, Section 1647.3)

Alternative Fuel and Idle Reduction Grants

The Small Business Advantage Grant Program provides matching grants of 50%, up to $9,500, to enable a Pennsylvania small business to adopt or acquire energy-efficient or pollution prevention equipment or processes. Pennsylvania trucking companies and independent truckers may use the funding to purchase U.S. Environmental Protection Agency SmartWay verified anti-idling technologies. Projects may not begin until after applications are approved. Applications have exceeded the program allotment for fiscal year 2017-2018. Applications will still be accepted and placed on a waitlist (verified November 2017). For more information, refer to the Small Business Advantage Grant Program website.

Alternative Fuel Corridor Infrastructure Funding

The Alternative Fuels Incentive Grant (AFIG) Program provides reimbursement grants for the installation of alternative fuel infrastructure along Pennsylvania interstate highway corridors. Grants are available for a reimbursement of 50%, up to $500,000, to install public electric, hydrogen, propane, and compressed natural gas fueling infrastructure along "Signage Ready" or "Signage Pending" highway corridors in Pennsylvania, as defined by the U.S. Federal Highway Administration. Eligible applicants include Pennsylvania municipal authorities, political subdivisions, non-profit entities, corporations, and limited liability companies or partnerships incorporated or registered in the Commonwealth. Applicants may submit more than one application if they are seeking funding to install fueling installations on separate highway segments. Applications will be accepted until 4:00 pm on December 15, 2017. For more information, including grant guidelines and application requirements, see the AFIG Program website.

Electric Vehicle Supply Equipment and Hydrogen Fuel Cell Infrastructure Grants

The Pennsylvania Department of Environmental Protection offers competitive grants for the acquisition, installation, operation, and maintenance of publicly available DC fast charging equipment and hydrogen fuel cell infrastructure. Grant reimbursements are awarded after project completion in the following amounts:

Eligible project locations are transportation corridors, destination locations, and locations that serve as community charging or fueling hubs. This program is funded by Pennsylvania's portion of the Volkswagen Environmental Mitigation Trust. For more information, including program guidelines, eligibility requirements, application deadlines, and instructions, see the Driving Pennsylvania Forward website.

Heavy-Duty Truck and Transit Bus Grants

The Pennsylvania Department of Environmental Protection offers competitive grants for the replacement or repower of Class 8 local freight trucks and transit buses. Model Years (MY) 1992 through 2009 local freight trucks and MY 2009 and older transit buses will be eligible for the replacement or repower with new diesel, electric, or alternative fuel. Vehicles or engines being replaced or repowered must be scrapped in accordance with program guidelines. Grant reimbursement amounts and additional terms and conditions will be provided in the forthcoming program guidelines (verified June 2018). This grant program is funded by Pennsylvania's portion of the Volkswagen Environmental Mitigation Trust. For more information, see the Driving Pennsylvania Forward website.