Tax Incentives and Rebates

Tax Incentives and Rebates for Propane-Fueled Equipment

Whether you’re a homeowner, farmer, or business owner with a commercial fleet, the advantages of switching your appliances and equipment to propane are numerous.

Propane is safe, clean-burning, thermally efficient, and made right here in the USA. Compared to other fuels, propane-powered equipment often lasts longer with less maintenance, has a lower cost of operation, and produces far fewer emissions and pollutants.

Of course, buying or converting your appliances, equipment, or vehicles can come with upfront costs. Fortunately, you may qualify for one or more tax incentives or rebate programs from government bodies, manufacturers, supplies, or NGOs. This makes switching to propane more affordable up front and helps you recover your investment in a shorter timeframe.

Incentives for Homeowners

If you have recently installed a propane furnace or tankless water heater, or are planning to do so in the near future, you may qualify for a federal tax credit. The Nonbusiness Energy Property Tax Credit allows homeowners to claim a limited tax credit on certain residential energy appliances that meet minimum efficiency standards.

Furthermore, energy providers, manufacturers, supplies, and other organizations may over rebates to consumers who purchase new, efficient propane-powered furnaces or water heaters.

Tax incentive and rebate programs are always changing, so be sure to contact your propane company for more details. They’ll help you find the best ways to save.  

Incentives for Agriculture and Commercial Landscape

The Propane Education & Research Council (PERC) sponsors the Propane Farm Incentive Program. This research program provides up to $5,000 toward the purchase of new propane-powered farm equipment, including industrial engines, generators, water heating systems, livestock and greenhouse heating systems, and weed control. In exchange, participants agree to share real-world performance data with PERC.

You can read more about the Propane Farm Incentive Program, as well as government and state programs geared toward agricultural and business professionals, at this site.

PERC also provides an incentive program for commercial landscapersand offers up to $1,000 toward the cost of a new mower, or $500 toward conversion of an existing mower.

Incentives for Commercial Fleets

Propane—known as autogas when used as a motor fuel—has been powering vehicles since the 1920s.

Autogas vehicles offer many benefits to forward-thinking commercial fleet operators. Autogas produces substantially fewer emissions than retail gasoline while being more efficient, less expensive to operate, and less expensive to maintain. Plus, it’s made in the US and just as easy to refuel as gasoline.

The MPGA’s Alternative Fuels Incentive Programoffers Michigan companies rebates of up to $4,000 (after applying all federal and state incentives) for first-time purchase of a new propane vehicle, or converting any 2015 or newer OEM vehicles to a propane auto gas system, in 2018.