Maine

Alternative Fueling Infrastructure Tax Credit

A tax credit is available for up to 25% of expenditures incurred for the construction, installation of, or improvements to any fueling or charging station for the purposes of providing clean fuels to the general public for use in motor vehicles. Clean fuels include compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, alcohol fuels containing at least 85% alcohol by volume, and electricity. This tax credit is available for tax years ending on or before December 31, 2008. Any portion of unused credits may be carried over into subsequent years as needed. (Reference Maine Revised Statutes Title 36, Section 5219-P)

Alternative Fuel and Alternative Fuel Vehicle (AFV) Promotion

A responsibility of the Energy Resources Council is, in coordination with the Department of Environmental Protection, to evaluate the costs and benefits of state government actions to stimulate an increase in the use and production of alternative fuels, including biofuels, and the use of AFVs in the state. (Reference Maine Revised Statutes Title 5, Section 3327; Title 35-A, Section 3211-A; and Executive Order 11, 2004)

Alternative Fuel Tax Rates

The state highway tax for each special fuel used in transportation is based on each fuel's energy content as compared to gasoline. Until June 30, 2008, the tax rates are as follows: E85 is taxed at a rate of $0.196 per gallon; propane (LPG) at $0.201 per gallon; and compressed natural gas (CNG) at $0.239 per 100 standard cubic feet. Gasoline is taxed at a rate of $0.276 per gallon and diesel is $0.288 per gallon. For more information, including fuel tax rates effective July 1, 2008, see the Maine Revenue Services Web site. (Reference Maine Revised Statutes Title 36, Section 3203)

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Loans

The Clean Fuel Vehicle Fund is a non-lapsing revolving loan fund managed by the Finance Authority of Maine and may be used for direct loans to finance all or part of any clean fuel vehicle project. The Finance Authority of Maine may also insure up to 100% of mortgage payments with respect to mortgage loans for clean fuel vehicle projects. (Reference Maine Revised Statutes Title 10, Sections 1023-K and 1026-A)

Provision for Establishment of Clean Fuel Vehicle Insurance Incentives

An insurer may credit or refund any portion of the premium charged for an insurance policy on a clean fuel vehicle in order to encourage its policyholders to use clean fuel vehicles, if insurance premiums on other vehicles are not increased to fund these credits or refunds. (Reference Maine Revised Statutes Title 24-A, Section 2303-B)