Search Federal and State Laws and Incentives

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). The Georgia Department of Revenue may adjust tax rates annually based on vehicle fuel economy and the Consumer Price Index through July 1, 2018. A GGE of compressed natural gas (CNG) must be at least 110,000 British thermal units and a GGE 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. 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 48-9-1 and 48-9-3)

A business that manufactures alternative energy products for use in battery, biofuel, and electric vehicle enterprises may claim an annual tax credit for five years. The amount of the tax credit is based on the number of eligible new full-time employee jobs. Qualified entities must be defined as business enterprises, which do not include retail businesses. Credit amounts differ depending on how the county in which the business is located ranks based on unemployment rates and income levels. Other conditions apply. (Reference Georgia Code 48-7-40)

The Georgia Joint Alternative Fuels Infrastructure Study Committee will evaluate how providing market incentives for AFV fueling infrastructure may lead to AFV market deployment. The Committee will provide a report of its recommendations and proposed legislation by December 1, 2016. (Reference Senate Resolution 1038, 2016)

Gasoline suppliers who provide fuel to distributors in the state must offer gasoline that is suitable for blending with fuel alcohol. Suppliers may not prevent or inhibit a gasoline distributor from being a blender or from qualifying for any federal or state tax credit offered to blenders. (Reference Georgia Code 10-1-234.1)