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Air Components & Systems Ltd
6000 General Commerce Dr
Charlotte, NC 28213
Phone: (866) 413-8077
Fax: 704-596-5881

CNG Grants & Tax Credits

Growth of the CNG industry has been most remarkable in developing countries like Brazil and Pakistan. Why?  Growing population and the economic progress made in the first decade of the twenty-first century.  And for many people in these countries, a CNG car will be their first car, making the market opportunities here are far greater than in markets of the developed countries.

The economy has become extremely dependent on petroleum-based fuel and any changeover to an alternative fuel will necessitate a lot of reconfiguration of the economy.  With Brazil and Pakistan, CNG found a place for itself as economic growth in these countries was picking up pace.  In the developed world, there is a greater need for government support in the form of grants to encourage people to make the move from gasoline to CNG.

The Federal Government has been providing grants and subsidies to municipalities and corporations to make the change from gasoline or petroleum based systems to CNG based systems.  One example of such a program is the Compressed Natural Gas Fleet Fueling Facilities Grant of the United States federal government.  Under this program the Federal Government offered to cover 50% of the cost of any municipal body that sought to upgrade a fueling facility to a CNG fueling facility.  Similarly, the Federal Government also offered to contribute 25% to the upgrade cost for private corporations.

Visit The U.S. Department of Energy’s Clean Cities for more information regarding federal support.

The nature of the tax credit is that by using a certain quantity of CNG, the customers are allowed reductions on the tax that they have to pay.  The savings to be gained on this are motivation enough for many people to switch over to CNG.

For instance, the government of Utah offers a tax credit on buying a CNG car with a maximum of $2500.  The state government guarantees that all the vehicles it sells under the CNG tax credit structure have been inspected and certified by the Environmental Protection Agency.  In the case of a tax credit promised under this structure that is in excess of your tax liability for the year, the benefit of the tax credit may be carried forward to up to five years.

The United States president also signed a bill in 2010 in which several incentives were provided to encourage the use of alternative fuels for transportation purposes. The incentive is in the form of a $0.50 tax credit for both CNG and LNG.

To learn more about the available tax credits please check out the forms below:

Email Sam for a brochure on funding resources