Michigan Propane Gas Association

Propane has been successfully used as a transportation fuel since the 1920s.  Today, in Michigan, over 10,000 vehicles operate on propane that can be fueled at over 500 sites throughout the state.  U.S. Environmental Protection Agency (USEPA) recognizes propane as a clean burning alternative fuel.  Tests demonstrate that propane emissions have 93% lower carbon monoxide, 73% lower hydrocarbons, and 57% lower nitrogen oxides than even the federal Clean Air Act standards.

Because propane is stored as a liquid and used as a dry gas, its driving range is quite comparable to gasoline achieving over 90 percent of the driving range of gasoline.  Based on equal fuel volume, propane has the longest driving range of all alternative fuels.  This means propane has more energy for each gallon of fuel than other alternative fuels.

Like other alternative fuels, propane is clean burning. Because of this clean-burning characteristic, propane engines can operate two to three times longer than gasoline and diesel engines between tune-ups.

Propane Vehicle Tax Credits

2010 Fuel Tax Credit

The IRS has released guidance with instructions for filing for the 50 cent per gallon fuel tax credit for taxable year 2010.  This guidance provides information on what form needs to be filed and when in order to claim the credit for 2010.  Please click here for the IRS Guidance. 

The National Propane Gas Association worked hard to secure this tax credit for the industry.  If you have questions about the 2010 Fuel Tax Credit, please contact the NPGA. 

Energy Policy Act

Other Resources