Tax Incentives

Financial Incentives

Many states offer financial incentives for switching to CNG or buying natural gas vehicles.

State Incentives

Although the federal government does not currently offer any incentives for drivers or fleets that adopt CNG, many states offer tax credits or other benefits for making the switch. For more information on state incentives, visit your state page.

New Alternative Transportation to Give Americans Solutions (NAT GAS) Act

The 2011 Act, introduced by a large bipartisan coalition and backers of the Pickens Plan, would provide new federal incentives for NGVs including:

Extending the vehicle purchase income tax credit by five years.

Dedicated vehicles would receive an 80% tax credit for the incremental cost of the vehicle or 80% of the conversion cost.

Bi-fuel vehicles would receive a 50% tax credit for the incremental cost of the vehicle or 50% of the conversion cost.

Increasing the caps on the vehicle purchase income tax credit.

Vehicles 8,500 pounds (lbs.) and less – cap at $7,500
Vehicles 8,501 to 14,000 lbs. – cap at $16,000
Vehicles 14,001 to 26,000 lbs. – cap at $40,000
Vehicles 26,001 lbs. and over – $64,000

Extending the Refueling Infrastructure Property Income Tax Credit by five years.

Increases to lesser of 50% of the equipment cost or $100,000
Tax credit also extends to home refueling units, up to $2,000

Extending the existing Excise Tax Credit to the Seller of CNG or LNG by five years.