Propane Tax Credit in Virginia

Propane is a versatile, energy-rich gas that offers numerous benefits such as flexible installation, dependability, cost savings and environmental friendliness. No wonder so many home and business owners throughout the United States are making the transition to clean-burning propane as their primary fuel source!

In addition to helping reduce your energy bills, there are other ways that switching to propane can save you money. A Virginia propane tax credit and various incentives are available to vehicle owners in the Old Dominion State.

Highlights of Virginia Alternative Fuel Credit and Incentive Programs

Here is a brief overview of a few incentives and alternative fuel credits in Virginia:

  • Alternative Fuel Vehicle (AFV) Tax Reduction — Local government entities that operate vehicles that run on alternative fuels (including propane) can receive a reduction in their personal property taxes.
  • AFV Conversion Fund — The Commonwealth has established a fund to help state agencies, local governments and school districts defray the costs of OEM AFV vehicles and aftermarket conversions. The funding can be used in conjunction with or as matching funds for applicable federal grants.
  • High Occupancy Vehicle Lane Exemption — Propane-powered vehicles bearing Virginia Clean Special Fuel license plates are free to use designated HOV lanes on Virginia highways, regardless of the number of vehicle occupants. License plates may be obtained for a fee of $25, in addition to the normal costs associated with plate acquisition.
  • Alternative Fuel Tax Exemption — Government entities, nonprofit charitable organizations and agricultural operations may be exempt from taxes on propane for use in their vehicles under certain conditions, such as when a nonprofit uses a vehicle to provide charitable services to low-income medical patients.
  • AFV Fueling and Infrastructure Loans — The Virginia Board of Education may appropriate funding from the Commonwealth’s Literary Fund to school systems that convert their bus fleets to operate with propane. The funds can also be used to construct propane fueling stations.
  • Government AFV Incentive — Virginia DOT and the Virginia Department of Mines, Minerals and Energy can provide joint funding of up to $10,000 to state agencies and local government entities to apply toward the conversion of vehicles to propane.
  • AFV and Hybrid Electric Exemption for Emissions Testing — Vehicles that use propane as their primary power source are exempt from biennial emissions inspections/testing in Virginia. The exemption also applies to hybrid electric vehicles that achieve EPA fuel ratings of at least 50 miles per gallon.
  • Propane Powered Vehicle — Vehicles that use propane as their primary power source can receive $0.50 per gallon exemption.
  • Propane Powered Fork Lift Fork lifts that use propane as their primary power source can receive $0.50 per gallon exemption.

Foster Fuels Can Meet Your Propane Needs in Virginia

If you’re considering the purchase of propane-powered vehicles or converting your existing fleet from gasoline to propane, Virginia-based Foster Fuels can provide high-quality propane at affordable prices. Our services include the installation of propane (autogas) filling stations for schools that are looking to operate their buses on propane to take advantage of the incentives and propane tax credits in Virginia.

Contact Foster Fuels to learn more about our wide range of propane services and how they can help you take full advantage of the alternative fuel credits in Virginia.

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