Propane Laws and Incentives in Delaware
The list below contains summaries of all Delaware laws and incentives related to propane.
State Incentives
Alternative Fuel Tax Exemption
Taxes imposed on alternative fuels used in official vehicles for the United States government or any Delaware state government agency, including volunteer fire and rescue companies, are waived. Alternative fuel retailers must obtain a fuel supplier’s license from the Delaware Department of Transportation (DelDOT), and operators or owners of vehicles using alternative fuel must obtain either a special fuel user’s license from DelDOT or pay the special fuel tax.
(Reference Delaware Code Title 30, Chapter 51, Subchapter II)
Laws and Regulations
Alternative Fuel Vehicle (AFV) Registration Fee
In addition to standard registration fees, AFV owners must pay a registration fee according to fuel source and weight. In addition to battery-electric vehicles, plug-in hybrid electric vehicles, and non-plug-in electric vehicles, “other alternative fuels” include liquified petroleum gas, propane, natural gas, ethanol, methanol, hydrogen, or another combustible fuel source that is not gasoline or diesel. Fee amounts are as follows:
| Vehicle Type | 6,000 lb or less | 6,001–10,000 lb | 10,001–26,000 lb | Greater than 26,000 lb |
|---|---|---|---|---|
| Electric vehicle (battery electric) | $110 | $150 | $260 | $900 |
| Plug-in electric vehicle (plug-in hybrid) | $85 | $115 | $200 | $600 |
| Non-plug-in electric vehicle (hybrid) | $60 | $80 | $140 | $480 |
| Other alternative fuel vehicles | $110 | $150 | $260 | $900 |
| Motorcycles, including electric motorcycles | $15 | n/a | n/a | n/a |
(Reference House Bill 164, 2025 and Delaware Code Title 21, Chapter 21, Section 2151A)
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.