State Policy Synopsis

Alabama

Fuel Taxation: Correct unit of tax for CNG and LNG with the same rate as traditional fuels.
State Fleet Plan: No
Equalized Sales Tax: No
Vehicle Incentive Programs: No
Method of Sale: Provides for the correct methods of sale for natural gas motor fuels in statute.
Weight Penalty Exemption: None

Alaska

Fuel Taxation: Has not established the correct units of tax for CNG and LNG which leads to the over-taxation of LNG.
State Fleet Plan: Yes, the Department of Transportation and Public Facilities must purchase or convert to vehicles that operate using alternative fuels whenever practical.
Equalized Sales Tax: No
Vehicle Incentive Programs: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Arizona

Fuel Taxation: Has not established the correct units of tax for CNG and LNG because natural gas fuels are not subject to the motor fuels tax.
State Fleet Plan: Yes, Arizona state agencies, boards, and commissions must purchase hybrid electric vehicles, alternative fuel vehicles, or vehicles that meet set greenhouse gas emissions standards
Equalized Sales Tax: No
Vehicle Incentive Programs: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Arkansas

Fuel Taxation: Has not established the correct units of tax for CNG and LNG, however, natural gas fuels are subject to a discounted rate compared to traditional fuels.
State Fleet Plan: No
Equalized Sales Tax: No
Vehicle Incentive Programs: Yes, however, the program has not received any funding.
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

California

Fuel Taxation: Has not established the correct units of tax for CNG and LNG, however, natural gas fuels are subject to a discounted rate compared to traditional fuels.
State Fleet Plan: None (They do have a zero-emission vehicle goal)
Equalized Sales Tax: No
Vehicle Incentive Programs: Yes, $34.5 million in vehicle grants.
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Colorado

Fuel Taxation: Correct unit of tax for CNG and LNG with a discounted rate compared to traditional fuels.
State Fleet Plan: Yes, the Department of Personnel and Administration must purchase motor vehicles that operate on compressed natural gas (CNG), plug-in hybrid electric vehicles, or vehicles that operate on other alternative fuels, subject to the availability of vehicles and adequate fueling infrastructure and assuming the incremental base or life cycle cost of the vehicle is not more than 10% over the cost of a comparable dedicated conventional vehicle.
Equalized Sales Tax: No
Vehicle Incentive Programs: Yes, income tax credits worth a varying percentage of the purchase price of alternative fuel vehicles as well as a $5 million alternative fuel vehicle grant program.
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Connecticut

Fuel Taxation: Correct unit of tax for CNG but not LNG. However, LNG is taxed at a discounted rate compared to its competitor diesel.
State Fleet Plan: None (They do have a plan but the parameters result in the exclusion of NGVs)
Equalized Sales Tax: No
Vehicle Incentive Programs: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Delaware

Fuel Taxation: Has not established the correct units of tax for CNG and LNG, which leads to LNG being overtaxed.
State Fleet Plan: Yes, all new light-duty vehicles that Delaware state agencies, departments, and offices purchase must be hybrid electric, alternative fuel, fuel-efficient, or low emission vehicles, unless such a purchase compromises health, safety, or law enforcement needs.
Equalized Sales Tax: No
Vehicle Incentive Programs: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Florida

Fuel Taxation: Correct unit of tax for CNG and LNG as well as an exemption from motor fuels tax until 2019.
State Fleet Plan: No
Equalized Sales Tax: No
Vehicle Incentive Programs: Yes, $6 million in vehicle rebates
Method of Sale: Provides for the correct methods of sale for natural gas motor fuels in statute.
Weight Penalty Exemption: None

Georgia

Fuel Taxation: Correct unit of tax for CNG and LNG with the same rate as traditional fuels.
State Fleet Plan: No
Equalized Sales Tax: No
Vehicle Incentive Programs: Yes, $2.5 million in NGV tax credits
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Hawaii

Fuel Taxation: Correct unit of tax for CNG but not LNG. However, both fuels are taxed at a discounted rate compared to traditional fuels.
State Fleet Plan: Yes, State and county agencies must purchase light-duty vehicles that reduce petroleum consumption and meet the needs of the agency.
Equalized Sales Tax: No
Vehicle Incentive Programs: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Idaho

Fuel Taxation: Has not established the correct units of tax for CNG and LNG, however, natural gas fuels are subject to a discounted rate compared to traditional fuels.
State Fleet Plan: No
Equalized Sales Tax: No
Vehicle Incentive Programs: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Illinois

Fuel Taxation: Has not established the correct units of tax for CNG and LNG which results in the over-taxation of LNG.
State Fleet Plan: Yes, state agencies that operate medium and heavy-duty vehicles must implement reduce petroleum consumption through various means including the use of alternative fueled vehicles.
Equalized Sales Tax: No
Vehicle Incentive Programs: No. While a vehicle rebate program is available a person can only apply for funding after they have purchased the vehicle.
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Indiana

Fuel Taxation: Correct unit of tax for CNG and LNG, however, the units are not properly defined. The same rate as traditional fuels is applied.
State Fleet Plan: Yes, departments are required to purchase alternative fuel vehicles unless the purchase would cost 20 percent more than its traditional counterpart.
Equalized Sales Tax: No
Vehicle Incentive Programs: No. While a program does exist it is funded through an additional tax on natural gas motor fuel which is a disincentive for adoption of NGVs.
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: Provided for both CNG and LNG trucks.

Iowa

Fuel Taxation: Correct unit of tax for CNG and LNG with the same rate as traditional fuels.
State Fleet Plan: Yes, at least 10 percent of new light-duty vehicles must be capable of using alternative fuels.
Equalized Sales Tax: No
Vehicle Incentive Programs: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Kansas

Fuel Taxation: Correct unit of tax for CNG and LNG with the same rate as traditional fuels.
State Fleet Plan: No
Equalized Sales Tax: No
Vehicle Incentive Programs: Yes, an unlimited amount of corporate tax credits are available and are worth up to 40 percent of the incremental cost of each vehicle. (Alternative fuel)
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Kentucky

Fuel Taxation: Correct unit of tax for CNG and LNG with a special fuels tax rate applied.
State Fleet Plan: Yes, the state has a goal of replacing 50 percent of all light-duty vehicles with alternative fuel vehicles.
Equalized Sales Tax: No
Vehicle Incentive Programs: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Louisiana

Fuel Taxation: Has not established the correct units of tax for LNG which results in the over-taxation of LNG.
State Fleet Plan: Yes, alternative fuel vehicles must be purchased unless a fueling station is not available within 25 miles or the agency cannot recoup the incremental cost within 60 months.
Equalized Sales Tax: No
Vehicle Incentive Programs: Yes, an unlimited amount of tax credits worth 50 percent of the incremental cost of the vehicle.
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Maine

Fuel Taxation: Has not established the correct units of tax for LNG which results in the over-taxation of LNG.
State Fleet Plan: No
Equalized Sales Tax: No
Vehicle Incentive Programs: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Maryland

Fuel Taxation: Has not established the correct unit of tax for LNG which results in the over-taxation of LNG.
State Fleet Plan: No
Equalize Sales Tax: No
Vehicle Incentive Programs: Yes, $2.5 million in pre-approved vehicle rebates.
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Massachusetts

Fuel Taxation: Has not established the correct unit of taxation for LNG, however, LNG is taxed at a discounted rate compared to its competitor diesel.
State Fleet Plan: Yes, the Commonwealth is required to purchase hybrid electric and alternative fuel vehicles to the maximum extent feasible.
Equalize Sales Tax: No
Vehicle Incentive Programs: Yes, $11.7 million in vehicle grants (Alternative Fuel)
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Michigan

Fuel Taxation: Has not established the correct units of tax for CNG and LNG, however, natural gas fuels are subject to a discounted rate compared to traditional fuels.
State Fleet Plan: No
Equalize Sales Tax: No
Vehicle Incentive Programs: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Minnesota

Fuel Taxation: Has not established the correct units of tax for CNG and LNG, however, CNG is subject to a discounted rate and LNG to a similar rate compared to traditional fuels.
State Fleet Plan: No
Equalize Sales Tax: No
Vehicle Incentive Programs: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Mississippi

Fuel Taxation: Correct unit of tax for LNG with the same rate as traditional fuels. Incorrect unit of tax for CNG.
State Fleet Plan: No (They have a plan which encourages agencies to purchase alternative fuel vehicles when feasible but the plan does not have any teeth)
Equalize Sales Tax: No
Vehicle Incentive Programs: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Missouri

Fuel Taxation: Correct unit of tax for CNG and LNG with a special fuels tax rate applied.
State Fleet Plan: Yes, agencies with fleets of 15 or more vehicles must ensure that 50 percent of new vehicle purchases are alternative fuel vehicles.
Equalize Sales Tax: No
Vehicle Incentive Program: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Montana

Fuel Taxation: Has not established the correct units of tax for CNG and LNG. As a consequence, LNG is overtaxed. CNG is provided with a discounted rate.
State Fleet Plan: No
Equalize Sales Tax: No
Vehicle Incentive Program: A program has been established but has yet to receive funding.
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Nebraska

Fuel Taxation: Correct unit of tax for CNG and LNG with the same rate as traditional fuels.
State Fleet Plan: No
Equalize Sales Tax: No
Vehicle Incentive Program: No. A loan program is available but the interest rate can be as high as 5 percent.
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Nevada

Fuel Taxation: Has not established the correct unit of tax for LNG which results in the over-taxation of LNG.
State Fleet Plan: Yes, 90 percent of new vehicle purchases must be either ultra-low emission vehicles or alternative fuel vehicles if the state fleet has 50 or more vehicles.
Equalize Sales Tax: No
Vehicle Incentive Program: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

New Jersey

Fuel Taxation: CNG and LNG is not taxed
State Fleet Plan: Yes, transit buses are required to either have pollution control devices or be powered by an alternative fuel.
Equalize Sales Tax: No
Vehicle Incentive Program: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

New Hampshire

Fuel Taxation: Correct unit of tax for CNG and LNG with the same rate as traditional fuels.
State Fleet Plan: No
Equalize Sales Tax: No
Vehicle Incentive Program: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

New Mexico

Fuel Taxation: Correct unit of tax for CNG and LNG with a special fuels tax rate applied.
State Fleet Plan: Yes, a minimum of 75% of state government and educational institution fleet vehicles purchased must be alternative fuel vehicles.
Equalize Sales Tax: No
Vehicle Incentive Program: A program has been established but yet to be adequately funded.
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

New York

Fuel Taxation: Has not established the correct unit of tax for LNG but is currently exempt from tax until 8/31/16
State Fleet Plan: Yes, all new light-duty vehicles purchased by the state must be alternative fuel vehicles and those agencies operating medium and heavy-duty vehicles must implement a strategy to reduce petroleum consumption.
Equalize Sales Tax: No
Vehicle Incentive Program: Yes, $10 million in vouchers for vehicles (Alternate Fuel).
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

North Carolina

Fuel Taxation: Correct unit of tax for CNG and LNG with the same rate as traditional fuels.
State Fleet Plan: Yes, all light duty vehicles purchased must be a low-emission or an alternative fuel vehicle.
Equalize Sales Tax: No
Vehicle Incentive Program: A program has been established but has yet to be adequately funded.
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

North Dakota

Fuel Taxation: Has not established the correct units of tax for CNG and LNG. As a consequence, LNG is overtaxed.
State Fleet Plan: No
Equalize Sales Tax: No
Vehicle Incentive Program: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Ohio

Fuel Taxation: Does not currently tax CNG and has established correct unit of tax for LNG.
State Fleet Plan: Yes, all new vehicle purchases must be alternative fuel vehicles with the exception of law enforcement vehicles.
Equalize Sales Tax: No
Vehicle Incentive Program: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: For CNG trucks only.

Oklahoma

Fuel Taxation: Correct unit of tax for CNG and LNG with a discounted rate compared to traditional fuels.
State Fleet Plan: No
Equalize Sales Tax: No
Vehicle Incentive Program: Yes, an uncapped income tax credit worth 50 percent of the incremental cost of the vehicle. (Alternative Fuel)
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Oregon

Fuel Taxation: Has not established the correct units of tax for CNG and LNG. As a consequence, LNG is overtaxed.
State Fleet Plan: Yes, all agencies are required to purchase alternative fuel vehicles unless it is not economically or logistically not feasible.
Equalize Sales Tax: No
Vehicle Incentive Program: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Pennsylvania

Fuel Taxation: Has not established the correct unit of taxation for LNG
State Fleet Plan: No
Equalize Sales Tax: No
Vehicle Incentive Program: $7.5 million in vehicle grants
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Rhode Island

Fuel Taxation: CNG is not taxed and the correct unit of taxation for LNG has not been established which leads to its over-taxation.
State Fleet Plan: Yes, 75 percent of new vehicles must be alternative fuel vehicles and the remainder must be hybrid electric vehicles.
Equalize Sales Tax: No
Vehicle Incentive Program: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

South Carolina

Fuel Taxation: Has not established the correct units of tax for CNG and LNG. As a consequence, LNG is overtaxed.
State Fleet Plan: No
Equalize Sales Tax: No
Vehicle Incentive Program: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

South Dakota

Fuel Taxation: Has not established the correct unit of tax for CNG and LNG is not taxed.
State Fleet Plan: No
Equalize Sales Tax: No
Vehicle Incentive Program: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Tennessee

Fuel Taxation: Correct unit of tax for CNG and LNG with the same rate as traditional fuels.
State Fleet Plan: Yes, 25 percent of vehicles purchased in ozone non-attainment areas must either by hybrid electric vehicles or natural gas vehicles.
Equalize Sales Tax: No
Vehicle Incentive Program: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Texas

Fuel Taxation: Correct unit of tax for CNG and LNG with a discounted rate for both CNG and LNG
State Fleet Plan: Yes, state fleets of 15 or more must purchase alternative fuel vehicles, excluding emergency and law enforcement vehicles.
Equalize Sales Tax: No
Vehicle Incentive Program: Yes. During 2014/2015 biennium:
Natural Gas-Only Incentive Programs:
–Clean Transportation Triangle Program: $7.76 million
–Texas Natural Gas Vehicle Grant Program: $24.8 million
Alternative Fuel Vehicle Incentive Programs
–Light-Duty Motor Vehicle: $7.76 million
–Emissions Reduction Program: $68.5 million
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Utah

Fuel Taxation: Has not established the correct units of tax for CNG and LNG, however, natural gas fuels are subject to a discounted rate compared to traditional fuels.
State Fleet Plan: Yes, by August 30, 2018 fifty percent of all new light-duty vehicles must meet Bin 2 emissions standards or be powered by an alternative fuel.
Equalize Sales Tax: No
Vehicle Incentive Program: Yes, $500,000 is available in loans and/or grants for alternative fueled vehicles. An income tax credit worth 35 percent of the incremental cost up to $1,500 is also available for alternative fueled vehicles.
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Vermont

Fuel Taxation: Does not tax CNG or LNG
State Fleet Plan: No
Equalize Sales Tax: No
Vehicle Incentive Program: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Virginia

Fuel Taxation: Has not established the correct units of tax for CNG and LNG, however, natural gas fuels are subject to a discounted rate compared to traditional fuels.
State Fleet Plan: Yes, the Commonwealth has established a procurement website which makes special natural gas and propane vehicle and fueling prices available to all level of government in Virginia.
Equalize Sales Tax: No
Vehicle Incentive Program: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Washington

Fuel Taxation: Has not established the correct unit of tax for LNG and over-taxes both fuels compared to traditional fuels
State Fleet Plan: No
Equalize Sales Tax: Yes
Vehicle Incentive Program: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

West Virginia

Fuel Taxation: Has not established the correct unit of tax for LNG but provides a discounted rate for both CNG and LNG compared to traditional fuels.
State Fleet Plan: Yes, fifty percent of vehicles purchased by the Department of Administration must be alternative fuel vehicles.
Equalize Sales Tax: No
Vehicle Incentive Program: Yes, a personal income tax credit worth 50 percent of the incremental cost up to $7,500 for light and medium-duty alternative fueled vehicles and up to $25,000 for heavy-duty alternative fueled vehicles.
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Wisconsin

Fuel Taxation: Has not established the correct unit of tax for LNG and provides a discounted rate for CNG compared to traditional fuels.
State Fleet Plan: No
Equalize Sales Tax: No
Vehicle Incentive Program: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

Wyoming

Fuel Taxation: Has not established the correct units of tax for CNG and LNG. As a consequence, LNG is overtaxed.
State Fleet Plan: Yes, fifty percent of vehicles purchased by the Department of Administration must operate on CNG if it is economically and logistically feasible.
Equalize Sales Tax: No
Vehicle Incentive Program: No
Method of Sale: Does not provide in statute for the appropriate methods of sale for natural gas motor fuels.
Weight Penalty Exemption: None

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