Natural Gas Laws and Incentives in Georgia
The list below contains summaries of all Georgia laws and incentives related to natural gas.
Laws and Regulations
Alternative Fuel Excise Tax
Distributors who sell or use motor fuel, including special fuels, are subject to an excise tax of $0.26 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 (GGE). A GGE of electricity may not exceed 11 kilowatt-hours, of hydrogen must be at least 2.2 pounds, of compressed natural gas (CNG) must be at least 110,000 British thermal units, and 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. For electricity, the excise tax only applies to electricity sold at a public electric vehicle charging stations. The Georgia Department of Revenue may assess, levy, and collect tax for any other motor fuels used on public highways using a GGE rate.
(Reference Georgia Code 48-9-3 and Senate Bill 146, 2023)
Alternative Fuel Vehicle (AFV) Annual Fee
All-electric vehicles are subject to an annual licensing fee of $316.40 for commercial vehicles and $210.87 for non-commercial vehicles. These fees also apply to plug-in hybrid electric vehicles and flexible fuel vehicles, but only if they have an AFV license plate.
AFV license plates are subject to a one-time manufacturing fee of $25, an annual $20 registration fee, and a $35 special tag fee. Electric, natural gas, propane, bi-fuel, and dual-fuel vehicles are eligible for an AFV license plate.
For more information, see the Georgia Department of Revenue Motor Vehicle Policy Bulletin and the Annual AFV Fee website.
(Reference Georgia Code 40-2-86.1 and 40-2-151)
Compressed Natural Gas (CNG) Permit
Individuals or businesses dispensing CNG for use in vehicles must obtain a permit from the Georgia Safety Fire Commissioner and pay a one-time fee of $150.
(Reference Georgia Code 25-2-4.1)
State Incentives
Alternative Fuel School Bus Grants
The Georgia Department of Education provides grants to local educational agencies for the purchase of new electric, compressed natural gas, or propane school buses. School districts must coordinate with a transportation field consultant from the Georgia Department of Education to apply. Grants amounts vary and are available on a first-come, first-served basis.
(Reference Georgia Code 20-2-240 and Georgia Rules and Regulations 160-1-4-.306)
Alternative Fuel Vehicle (AFV) Conversion Tax Credit
An income tax credit is available for 10% of the cost to convert a vehicle to natural gas, electricity, propane, and hydrogen, up to $2,500 per vehicle. Converted vehicles must be fueled solely by an alternative fuel and must meet the emissions standards for low-emission or zero emission vehicles defined by the Board of Natural Resources. For more information, see the Georgia Environmental Protection Division Clean Vehicle Related Tax Credits website.
(Reference Georgia Code 48-7.40.16)
Diesel Emission Reduction Grants
The Georgia Environmental Protection Division (EPD) provides U.S. Environmental Protection Agency Diesel Emission Reduction Act funding for eligible projects that replace existing school buses with alternative fuel school buses or zero-emission school buses. Eligible alternative fuels include electricity, natural gas, or propane. For more information, see the EPD School Bus Grants website.
High Occupancy Vehicle (HOV) and High Occupancy Toll (HOT) Lane Exemption
Alternative fuel vehicles (AFVs) displaying the proper alternative fuel license plate may use HOV and HOT lanes, regardless of the number of passengers. Qualified AFVs may also use the HOT lanes toll-free. AFVs include electric vehicles and bi-fuel or dual-fuel vehicles that operate on natural gas or propane. Applicants must provide proof they have paid registration fees in full before receiving the license plate. This exemption expires September 30, 2025. For more information on fees and eligibility for the AFV license plate, see the Georgia Department of Public Safety websites.
(Reference Georgia Code 32-9-4, 40-2-86.1, and 40-6-54)
More Laws and Incentives
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