Georgia Laws and Incentives for Ethanol

The list below contains summaries of all Georgia laws and incentives related to Ethanol.

State Incentives

Alternative Fuel Vehicle (AFV) Tax Credit

An income tax credit is available to individuals who purchase or lease a new dedicated AFV or convert a vehicle to operate solely on an alternative fuel. The amount of the tax credit is 10% of the vehicle cost, up to $2,500. Qualified vehicles must meet emissions standards defined by the Georgia Board of Natural Resources. Eligible alternative fuels include natural gas, propane, hydrogen, coal derived liquid fuels, fuels other than alcohol derived from biological materials, and electricity. Any portion of the credit not used in the year the AFV is purchased or converted may be carried over for up to five years. This incentive does not apply to hybrid electric vehicles. (Reference Georgia Code 48-7-40.16)

Point of Contact
James Udi
Environmental Specialist
Georgia Environmental Protection Division
Phone: (404) 363-7046
Fax: (404) 362-2534
james.udi@dnr.state.ga.us

Alternative Fuel and Advanced Vehicle Job Creation Tax Credit

A business that manufactures alternative energy products for use in battery, biofuel, and electric vehicle enterprises may claim an annual tax credit for five years. The amount of the tax credit is based on the number of eligible new full-time employee jobs. Qualified entities must be defined as business enterprises, which do not include retail businesses. Credit amounts differ depending on how the county in which the business is located ranks based on unemployment rates and income levels. Other conditions apply. (Reference Georgia Code 48-7-40)

Alternative Fuels Production Assistance

The Georgia Division of Energy Resources and the Georgia Environmental Finance Authority (GEFA) provide assistance to companies that are considering locating alternative fuels production facilities in Georgia. Using a broad network of biomass and energy industry representatives, as well as state and local government leaders, GEFA may provide prospective businesses with useful information and connect businesses with the appropriate contacts. For more information, see the GEFA Renewable Energy and Alternative Fuels Development website.

Laws and Regulations

Ethanol Blending Regulation

Gasoline suppliers who provide fuel to distributors in the state must offer gasoline that is suitable for blending with fuel alcohol. Suppliers may not prevent or inhibit a gasoline distributor from being a blender or from qualifying for any federal or state tax credit offered to blenders. (Reference Georgia Code 10-1-234.1)

Alternative Fuel Use and Alternative Fuel Vehicle (AFV) Acquisition Requirements

State agencies and departments must 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 must purchase gasoline blended with ethanol and diesel fuel blended with biodiesel for use in state vehicles when available and economically practical. (Reference Executive Order 02.28.06.02, 2006)

Alternative Fuel Excise Tax

Distributors who sell or use motor fuel, including special fuels, are subject to an excise tax of $0.075 per gallon. Motor fuels that are not commonly sold or measured by the gallon and are used in motor vehicles on public highways are taxed according to their gasoline gallon equivalent. A gasoline gallon equivalent (GGE) of compressed natural gas (CNG) must be at least 110,000 British thermal units and a GGE of liquefied natural gas (LNG) must be at least 6.06 pounds. CNG is defined as a mixture of hydrocarbon gases and vapors, consisting principally of methane in gaseous form that has been compressed for use as a motor fuel. LNG is defined as methane or natural gas in the form of a cryogenic or refrigerated liquid for use as a motor fuel. Propane and special fuels sold in bulk to a licensed consumer distributor are exempt from this tax. (Reference House Bill 371, 2013 and Georgia Code 48-9-1 and 48-9-3)