Georgia E85 Laws and Incentives
State Incentives
E85 Fueling Infrastructure Grant Program
The Georgia Environmental Facilities Authority administers the Georgia E85 Retail Infrastructure Grant Program, which funds E85 infrastructure projects. Grants of up to $20,000 or 1/3 of the total planned project cost, whichever is less, are available for each approved project. Construction for any approved project must begin no later than six months after the date the grant is issued and must be complete within one year of receipt of the grant. No grants will be awarded after July 1, 2009. (Reference Georgia Code 50-8-170)
Alternative Fuels Production Assistance
The Georgia Division of Energy Resources and the Georgia Environmental Facilities Authority (GEFA) provide assistance to companies who are considering locating alternative fuels production facilities in Georgia. Utilizing a broad network of biomass and energy industry representatives, as well as state and local government leaders, GEFA can provide prospective businesses with useful information and connect businesses with the appropriate contacts.
Alternative Fuel Production Facility Tax Exemption
Tangible personal property used in, or for, the construction of an alternative fuel production facility dedicated to the production of ethanol, biodiesel, butanol, and their by-products are exempt from the state sales and use tax. Alternative fuels produced in the facility must be derived from biomass materials such as agricultural products, animal fats, or the wastes of such products or fats to qualify. The tax exemption does not apply to property purchased after the production and processing of alternative fuels has begun at the facility. The exemption applies to tangible personal property purchased between July 1, 2007, and June 30, 2012. (Reference Georgia Code 48-8-3)
Alternative Fuel Vehicle (AFV) Tax Credit
An income tax credit is available for the purchase, lease, or conversion of a vehicle that operates solely on an alternative fuel and meets the U.S. Environmental Protection Agency (EPA) certification of a Low Emission Vehicle (LEV). The credit is worth up to 10% of the cost of a new AFV or up to 10% of the cost of converting the vehicle to operate on an alternative fuel, or $2,500, whichever is less. The credit cannot exceed the taxpayer's annual income tax liability, but any portion of the credit not used in the year the AFV is purchased or converted may be carried over for up to five additional years. This incentive does not apply to hybrid electric vehicles. (Reference Georgia Code 48-7-40.16)
Alternative Fuel Vehicle (AFV) High Occupancy Vehicle (HOV) Lane Exemption
AFVs displaying the proper alternative fuel license plate are allowed to use HOV lanes, regardless of the number of passengers. (Reference Georgia Code 32-9-4 and 40-2-76)
State Laws and Regulations
Biofuels Blending Regulation
Gasoline suppliers who provide fuel to distributors in the state are required to offer gasoline that is suitable for blending with fuel alcohol. Suppliers are not permitted to prevent or inhibit a gasoline distributor in the state from being a blender or from qualifying for any federal or state tax credit offered to blenders. (Reference Senate Bill 30, 2009, and Georgia Code 10-1-234.1)
Energy Program Development
The Governor's Energy Challenge supports the reduction of energy usage by state and local government agencies by 15% by 2020, as compared to 2007 energy use levels, and encourages businesses within the state to match these commitments. The Challenge also supports economic development through the commercialization of bioenergy based on state-grown feedstocks. These efforts are facilitated by the Georgia Environmental Facilities Authority, the Bioenergy Corridor, and the Georgia E85 Retail Infrastructure Grant Program. (Reference Executive Order 04.24.08.02, 2008)
Alternative Fuel Use and Alternative Fuel Vehicle (AFV) Acquisition Requirements
State agencies and departments are required to prioritize the procurement of high fuel efficiency and flexible fuel vehicles when such technologies are commercially available and economically practical. Additionally, all state-owned fueling facilities are required to maximize the purchasing of gasoline blended with ethanol and diesel fuel blended with biodiesel for use in state vehicles when available and economically practical. On December 15, 2006, the Governor's Energy Policy Council finalized the first Comprehensive State Energy Strategy (PDF 892 KB), which offers a suggested approach toward a sustainable energy future for Georgia and includes implementation strategies related to alternative fuel production and use. (Reference Executive Order 02.28.06.02, 2006)
Motor Fuel Excise Tax
An excise tax is imposed at the rate of $0.075 per gallon on distributors who sell or use motor fuel in Georgia. Motor fuels that are not commonly sold or measured by the gallon, and are used in any motor vehicles on public highways, may be taxed according to their gasoline gallon equivalent. Propane and special fuels sold in bulk to a licensed consumer distributor are exempt from this tax. (Reference Georgia Code 48-9-3)
