Pennsylvania Propane Laws and Incentives
State Incentives
Alternative Fuel Production Tax Credits
The Alternative Energy Production Tax Credit Program provides a credit of 15% of the net cost of projects related to the production of alternative fuels, as well as the research and development of technology to provide alternative fuels, for up to $1 million per taxpayer. An eligible applicant must develop or construct an alternative energy production project located in Pennsylvania that has a useful life of at least four years. (Reference Title 73 Pennsylvania Statutes 1649.701-1649.711)
Renewable Energy Grants
Pennsylvania Energy Development Authority (PEDA) provides grants and loan guarantees for alternative energy projects and related research referring to deployment projects, manufacturing, or research. PEDA funding is available for projects involving clean, alternative fuels for transportation, biomass, and fuel cells. Another grant program, the Pennsylvania Energy Harvest Grant, seeks to deploy cleaner energy sources by providing funding for renewable energy technologies, such as biomass energy projects.
State Laws and Regulations
Energy Independence Strategy
The PennSecurity Fuels Initiative aims to reduce dependence on foreign oil by replacing 900 million gallons of the Commonwealth's transportation fuels with alternative sources over the next decade. The Initiative requires that retail transportation fuels contain a certain percentage of biodiesel or ethanol, and it also invests $30 million in existing funds from the Commonwealth's Alternative Fuels Incentive Grant program to build alternative fuel production and fueling infrastructure by 2011. The initiative also includes the creation of incentives that open new markets to Pennsylvania farmers who grow the feedstocks used to produce ethanol and biodiesel, and the creation of safeguards against alternative fuel price increases. For more information on the PennSecurity Fuels Initiative see the Pennsylvania Department of Environmental Protection Web site.
Alternative Fuels Tax
A tax is imposed on alternative fuels used to propel vehicles of any kind on public highways. The rate of tax is determined on a gasoline gallon equivalent basis. The tax rates are posted in the Pennsylvania Bulletin. (Reference Title 75 Pennsylvania Statutes, Section 9004)
