Pennsylvania Incentives and Laws for Natural Gas
The list below contains summaries of all Pennsylvania incentives and laws related to Natural Gas.
State Incentives
Alternative Fuel Production Tax Credits
The Alternative Energy Production Tax Credit Program provides a credit of 15%, up to $1 million per taxpayer, of the net cost of projects related to the production of alternative fuels and the research and development of technology to provide alternative fuels. An eligible applicant must develop or construct an alternative energy production project located in Pennsylvania that has a minimum useful life of four years. Funding is contingent upon annual legislative appropriations. As of October 2011, the program is closed but may reopen in the future. (Reference Title 73 Pennsylvania Statutes, Chapter 18G, Section 1649.701-1649.711)
Alternative Fuel Development and Deployment Grants
Pennsylvania Energy Development Authority (PEDA) provides grants of up to $1,000,000 for alternative energy projects and research related to deployment projects or manufacturing. PEDA funding is available for projects involving biomass, fuel cells, and clean and alternative fuels for transportation, and may be used for equipment purchases, construction, contractor expenses, and engineering design necessary for construction or installation. Pure research is not eligible for funding. As of October 2011, the PEDA grant program is closed and no longer accepting applications, but interested applicants may sign up for notifications about the program status via the PEDA website.
Alternative Fuel Project Grants
Pennsylvania Energy Harvest Grant seeks to deploy cleaner energy sources by providing funding for alternative energy projects, including those involving clean, alternative fuels for transportation. Projects must address both energy and environmental concerns; projects that are primarily education, outreach, feasibility, assessment, planning, or research and development are not eligible. Eligible applicants include an incorporated 501(c)(3) non-profit organizations that is also registered with the Pennsylvania Bureau of Charitable Organizations; county or municipal government; county conservation district; Council of Governments; a school, school district, college or university; or an incorporated watershed organization recognized by the Pennsylvania Department of Environmental Protection. As of October 2011, this grant program is closed but interested applicants may sign up for notifications about the program status via the Energy Harvest website.
Utility/Private Incentives
Natural Gas Infrastructure Technical Assistance - Columbia Gas
Columbia Gas of Pennsylvania, Inc. provides natural gas infrastructure technical assistance.
Point of Contact
Mack Godfrey
Columbia Gas of Pennsylvania, Inc.
Phone: (724) 416-6324
mgodfre@nisource.com
Laws and Regulations
State Fleet Retrofit Feasibility Study
The Pennsylvania House of Representatives directs the Pennsylvania Department of General Services to conduct a study that will determine the associated costs and feasibility of modernizing the state fleet by retrofitting current state-owned vehicles with compressed or liquefied natural gas engines. (Reference House Resolution 631, 2010)
Alternative Fuels Tax
Alternative fuels used to propel vehicles of any kind on public highways are taxed at a rate determined on a gasoline gallon equivalent basis. The tax rates are posted in the Pennsylvania Bulletin. (Reference Title 75 Pennsylvania Statutes, Chapter 90, Section 9004)

