Tax credits, grants and incentives
If you are considering buying a natural gas vehicle for personal use or using NGVs within your fleet, you may be eligible for tax credits, grants, incentives or other funding opportunities. For fleets, these grants can help offset the purchase price of new NGVs or help fund the construction of a fueling station. For personal use, these grants can help offset the cost of vehicles as well as the price or lease cost of home refueling units.
Southern California Gas Company's NGV group can assist you in identifying sources of funding and applying for funds. Funding sources change regularly, so please contact us at 1-800-GAS-2000 or e-mail us to request a point of contact. We can review all of the latest applicable incentives with you. If appropriate, we can refer you to a qualified grant writing specialist who can further assist you in obtaining funding.
The information below is for general information only. Please contact your tax advisor or the tax codes for details of any bill, measure or program.
Federal tax incentives
The Energy Policy Act (EPAct) of 2005 provides for an income tax credit equal to 30 percent of the cost of natural gas refueling equipment. This could be up to:
- $30,000 in the case of large stations and
- $1,000 for home refueling appliances.
The credit went into effect after December 31, 2005 and currently is available until the end of 2013. Visit NGVAmerica - Federal NGV Tax Incentives.*
Federal $.50 per gallon CNG fuel credit
A provision in the Highway Bill, the "Volumetric Excise Tax Credit," which became effective October 1, 2006, provides the seller a $.50 per gasoline gallon equivalent credit. See IRS forms 637, schedule 3, 8849 and 8847. For more details, visit NGVAmerica - Federal NGV Tax Incentives. *
Federal incentives for school buses
The U.S. Environmental Protection Agency * has compiled a list of state and federal grants and funding that applies especially to school buses, including the Congestion Mitigation and Air Quality Program (CMAQ).
State and local incentives, laws and grants
The U.S Department of Energy's Alternative Fuels and Advanced Vehicles Data Center has compiled a list of California incentives and laws for alternate fuel vehicles.
Information on air pollution incentives, grants and credit programs is also available from the California Air Resource Board (CARB). *
The South Coast Air Quality Management District * maintains a list of funding opportunities and programs.
For more information, please contact us at 1-800-GAS-2000 or email@example.com.