Wisconsin Laws and Incentives for Propane (LPG)

The list below contains summaries of all Wisconsin laws and incentives related to Propane (LPG).

State Incentives

Alternative Fuel Tax Refund for Taxis

A person using alternative fuel to operate a taxi used to transport passengers may be reimbursed for the paid amount of the Wisconsin state fuel tax. Refund claims must be filed within one year of the fuel purchase date and must be for a minimum of 100 gallons of alternative fuel. (Reference Wisconsin Statutes 78.75(1m)(a)1)

Alternative Fuel Tax Exemption

No county, city, village, town, or other political subdivision may levy or collect any excise, license, privilege, or occupational tax on motor vehicle fuel or alternative fuels, or on the purchase, sale, handling, or consumption of motor vehicle fuel or alternative fuels. For more information see the Wisconsin Grant Programs page. (Reference Wisconsin Statutes 78.82)

Laws and Regulations

Alternative Fuel Vehicle Acquisition and Alternative Fuel Use Requirements

The Wisconsin Department of Administration (DOA) encourages state employees operating state-owned or leased motor vehicles to use hybrid electric vehicles or vehicles that operate on gasohol (a motor fuel containing at least 10% alcohol) or alternative fuels whenever feasible and cost effective. DOA must place a list of gasohol and alternative fueling station locations in each state-owned or state-leased motor vehicle for driver reference. DOA also encourages Wisconsin residents and state employees who use personal motor vehicles on state business to use gasohol and alternative fuels. (Reference Wisconsin Statutes 16.045 and Executive Order 141, 2006)

Petroleum Reduction Requirements

The Wisconsin Department of Administration's fleet management policy requires all state agencies to collectively reduce gasoline use in state-owned vehicles by at least 50% by 2015 as compared to the total amount used in 2006. In addition, state agencies must reduce petroleum-based diesel fuel use by 25% by 2015. (Reference Wisconsin Statutes 16.045 and Executive Order 141, 2006)

Alternative Fueling Infrastructure Development

The Wisconsin Department of Agriculture, Trade and Consumer Protection must pursue the establishment and maintenance of sufficient alternative fueling infrastructure at public retail outlets to meet the public's traveling needs. (Reference Wisconsin Statutes 93.07(26))

Alternative Fuels Tax

A state excise tax is imposed on the use of alternative fuels. Alternative fuels include liquefied petroleum gas (LPG or propane), compressed natural gas (CNG), and liquefied natural gas (LNG). The current tax rates are as follows: $0.226 per gallon of propane; $0.247 per gasoline gallon equivalent (GGE) of CNG; and $0.197 per GGE of LNG. No tax is imposed on alternative fuels used by the U.S. government or its agencies (when presented with a valid exemption certificate) or on vehicles used for urban mass transportation of passengers. For more information, see the Wisconsin Department of Revenue Alternate Fuel Tax website. (Reference Wisconsin Statutes 78.40)

Alternative Fuel License

Any person acting as an alternative fuels dealer must hold a valid alternative fuel license and certificate from the Wisconsin Department of Administration. Except for alternative fuels that a dealer delivers into a fuel supply tank of any motor vehicle in the state, no person may use alternative fuels in the state unless the person holds a valid alternative fuel license or an authorized supplier has delivered the alternative fuel. For more information, see the State of Wisconsin License, Permit and Registration Services website. (Reference Wisconsin Statutes 78.47)

Propane Supplier Requirements

A retail supplier may only distribute liquefied petroleum gas (LPG or propane) if the supplier holds a license from the Wisconsin Department of Commerce. The license must be renewed every two years. In addition, propane retail suppliers must also provide and maintain liability insurance. Penalties for noncompliance may apply. (Reference Wisconsin Statutes 101.16)