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Idaho Propane Laws and Incentives


State Laws and Regulations

Liquefied Petroleum Gas (LPG) Board and Dealer Requirements

The Idaho LPG Public Safety Act established the LPG Board and requires that LPG dealers meet educational, experience, and examination qualifications, and hold a valid individual license. Each LPG fueling facility must also be licensed. Beginning July 1, 2009, a fee of up to $500 is required for each license application, original license, and annual license renewal. (Reference House Bill 90, 2009, and Idaho Statutes 54-5301 to 54-5317)

Alternative Fuels Tax

The motor fuel tax rate of $0.25 per gallon does not apply to special fuels dispensed into a motor vehicle that uses gaseous special fuels and displays a valid gaseous special fuels permit. Special fuels include compressed and liquefied natural gas, liquefied petroleum gas, hydrogen, and fuel suitable for use in diesel engines. The state excise tax on special fuels, determined on a gasoline gallon equivalent basis, still applies. Alternatively, an annual fee in lieu of the excise tax may be collected on a vehicle powered by gaseous special fuels, according to the gross vehicle weight rating of the vehicle. State government agencies are entitled to a refund of any special fuels tax paid to the vendor from which the fuel was purchased. No refund of special fuels tax shall be paid on special fuels used by a registered motor vehicle while idling. Idling means a period of time greater than 15 minutes when the motor vehicle is stationary with the engine operating. (Reference Idaho Statutes 63-2401, 63-2402, 63-2423, and 63-2424)