Search Federal and State Laws and Incentives

The Alternative Fuels Incentive Grant (AFIG) Program provides financial assistance for qualified projects; information on alternative fuels, AFVs, and HEVs; and advanced vehicle technology research, development, and demonstration. Projects that result in product commercialization and the expansion of Pennsylvania companies are favored in the selection process.

The AFIG Program also offers rebates to assist eligible residents with the incremental cost of the purchase of new AFVs, including all-electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), natural gas vehicles (NGVs), and propane vehicles. The rebate amounts are $2,000 for qualified EVs and PHEVs and $1,000 for NGVs and propane vehicles. Rebates are available until 250 rebates are disbursed or December 31, 2016, whichever occurs first.

For more information, including forms and detailed requirements, see the AFIG Program and Alternative Fuel Vehicle Rebates websites. (Reference Title 73 Pennsylvania Statutes, Chapter 18E, Section 1647.3)

Alternative fuels used to propel vehicles of any kind on public highways are taxed at a rate determined on a gasoline gallon equivalent basis. For more information, including applicable tax rates, see the Pennsylvania Department of Revenue website. Certain exemptions apply. (Reference Title 75 Pennsylvania Statutes, Chapter 90, Section 9004)

One year after in-state production has reached 350 million gallons of cellulosic ethanol and sustained this volume for three months, all gasoline sold in Pennsylvania must contain at least 10% cellulosic ethanol. All diesel fuel sold in Pennsylvania must contain at least 2% biodiesel (B2) one year after in-state production of biodiesel reaches 40 million gallons. The mandated biodiesel blend level will continue to increase according to the following schedule:

• 5% biodiesel (B5) one year after in-state production of biodiesel reaches 100 million gallons;
• 10% biodiesel (B10) one year after in-state production of biodiesel reaches 200 million gallons; and
• 20% biodiesel (B20) one year after in-state production of biodiesel reaches 400 million gallons.

(Reference Title 73 Pennsylvania Statutes, Chapter 18H, Sections 1650.3 and 1650.4)