Clean Fuel Vehicle Incentives
(updated January, 2013)
The following is a summary of current State and Federal programs that help defray the cost of switching to alternative fuels:
The State of Maine has enacted legislation that provides incentives for the purchase and operation of Clean Fuel Vehicles. Businesses, municipalities, and individuals can now save money when adding clean, alternative fuel vehicles to their fleet.
Fuel Tax Equalization for Clean Fuels in Maine. Beginning October 1, 2000 the State Highway Tax on clean fuels was equalized to gasoline according to their relative energy (BTU) content by volume. In 2008 adjustments were made and some fuels were added. Beginning July, 2009 ethanol and biodiesel blends up to 90% are taxed at gasoline and diesel rates, respectively. All fuels are subject to annual indexing relative to the petroleum product they displace.
|Fuel Type||BTU content per gallon||Formula (BTU value fuel/BTU value gasoline)||Tax Rate|
|Gasoline||115,000||100% x $0.30||$0.300 per gallon|
|Methanol (M85)||65,530||57% x $0.30||$0.147 per gallon|
|Ethanol (E85)||81,850||71% x $0.30||$0.198 per gallon|
|Propane (LPG)||84,500||73% x $0.30||$0.219 per gallon|
|Compressed Natural Gas (CNG)||93,150*||81% x $0.30||$0.243 per 100 SCF*|
|Hydrogen||26,450||23% x $0.30||$0.070 per 100 SCF*|
|HCNG***||79,733*||69% x $0.30||$0.208 per SCF*|
|Diesel||128,400||100% x $0.312||$0.312 per gallon|
|Natural Gas (LNG)***||73,500||57% x $0.312||$0.178 per gallon|
|BioDiesel (B100)||118,300||92% x $0.312||$0.287 per gallon|
|*Based on 100 standard cubic feet (SCF)
** Hydrogen Compressed Natural Gas *** Liquefied Natural Gas
In addition to Maine State incentives, taxpayers can also take advantage of Federal tax incentives. The New Year’s Day “Fiscal Cliff” tax deal in Congress reinstated federal alternative fuel tax incentives and credits through December of 2013, and retroactively to January of 2012. It also extends tax credits for plug-in hybrid Electric Vehicles (EVs) up to $7,500. For more details, visit the Department of Energy Alternative Fuels and Advanced Vehicles Data Center.