Propane Autogas Incentives & Grants
There are numerous incentives available for school districts and fleets to make the switch to propane autogas. The Propane Council of Texas, a non-profit 501 (c) 3 has complimentary grant consultation and writing services for Texas fleets looking to make the switch to propane autogas.
| Program | Deadline | Funding For | Funding Level | Scrap Old Vehicle? | Who qualifies? | Eligible Areas |
| TCEQ Light Duty Vehicle Incentive Program www.terpgrants.org
|
Closes January 7, 2021 | Light duty propane under 10,000 GVWR | $5,000 per new propane vehicle or propane conversion within first 500 miles | NO | individuals & public & private fleets | Statewide |
| Texas Volkswagen Environmental Mitigation www.TexasVWFund.org
|
Closes January 27, 2021 | To replace or repower 1992-2009 diesel vehicles greater 26,000 GVWR Class 7-8 refuse, recycling, & sweeper trucks with propane. | Funding dependent on host of factors including fuel choice, whether you are government or non-governmental entity | YES, REQUIRED. | public & private fleets | Dallas-Fort Worth Area Houston-Galveston-Brazoria Area Beaumont-Port Arthur Area San Antonio Area Austin Area El Paso County Bell County |
| TCEQ TNGVGP www.terpgrants.org | Closes Feb 26, 2021 | To replace older diesel or gasoline MY 2009 or older vehicle with new dedicated propane vehicle. | Based on MY you are replacing & GVWR | YES, REQUIRED. | public & private fleets | Clean Transportation Zone |
| Governmental Alternative Fuel Fleet Grant Program www.terpgrants.org | Opening 2021, Date TBD | Replace or adding alternative fuel vehicles to fleet and installation of alternative fuel refueling infrastructure. | Funding levels TBA | TBD | political subdivisions or state agencies that operate a fleet of more than 15 motor vehicles; and mass transit and school transportation providers. |
TBA |
Grant opportunities pop all the time. The Council will continually update this spreadsheet as more opportunities arise. It is best to contact us so you can match you with the best grants.
For questions or grant writing assistance, please contact us at (800)325-7427 or email info@propanecounciloftexas.org.
State & Federal Tax & Credits
There is no longer a state motor fuel tax on propane in Texas. The federal motor fuel tax rate on propane is a little over 13.5 cents per gallon. This is a reduced rate compared to gasoline and diesel that are taxed at the rate
At this time, the federal tax credit has been retroactively extended for 2018 or 2019 and prospectively for 2020.