The use of natural gas and propane vehicles is an important way to diversify U.S. transportation fuel supply and reduce U.S. reliance on foreign oil. Both natural gas and propane are primarily produced in the U.S., which increases U.S. energy security and creates job opportunities. Most natural gas and propane vehicles in Indiana are used by government or commercial fleets, and natural gas and propane filling stations are spreading quickly across Indiana.
Natural Gas Natural gas
can power vehicles in the form of compressed natural gas (CNG) or liquefied natural gas (LNG). Natural gas is mainly found in underground rock formations, but it can also be derived from renewable biomass resources, such as the break down of plant or animal waste in landfills or anaerobic digestors. Learn more about natural gas here
Compressed Natural Gas (CNG)
stays in a gaseous form and is stored on a vehicle in high pressure tanks—up to 3,600 pounds per square inch. A CNG-powered vehicle gets about the same fuel economy as a conventional gasoline vehicle on a gasoline gallon equivalent (GGE) basis (a GGE equals about 5.7 lb of CNG).Light duty trucks tend to use CNG instead of LNG.
Liquefied Natural Gas (LNG)
allows more energy to be stored on board in a small volume, so it is suited for long distance or heavy duty trucks. LNG is produced when natural gas is purified and condensed into liquid at 260°F. At atmospheric pressure, LNG occupies only 1/600 the volume of natural gas in vapor form. A gasoline gallon equivalent (GGE) equals about 1.5 gallons of LNG.
becomes liquid when pressurized and is then known as liquefied petroleum gas (LPG)is stored on a vehicle in a tank pressurized to around 150 pounds per square inch. LPG has high energy density and low maintenance costs. Its high octane rating (104 to 112 compared with 87 to 92 for gasoline) has resulted in documented engine life of up to two times that of gasoline engines. However, a gallon of LPG has about 25% less energy than a gallon of gasoline. Learn more about propane here
Fueling Station Locations
- There's an app for that! The free Alternative Fueling Station Locator iPhone app, developed by the National Renewable Energy Laboratory, allows iPhone users to find the closest CNG, LNG, and Propane stations within a 30-mile radius. Users can view the locations on a map or as a list containing station addresses, phone numbers, and hours of operation.
- CNG: You can find Indiana's ten CNG stations here.
- LNG: You can find Indiana's one LNG station here.
- Propane (LPG): You can find Indiana's sixty-three propane stations here.
Tax Credits for Natural Gas Vehicles and Fueling Equipment State Natural Gas Vehicle (NGV) Tax Credit:
Effective January 1, 2014, individual and entities that place into service an NGV with a gross vehicle weight rating of more than 33,000 pounds may be eligible for a tax credit for 50% of the incremental cost of the NGV, up to $15,000. One individual or entity may claim up to $150,000 in such credits per year. Other restrictions apply. The credit expires December 31, 2016. Unused credits may be carried forward for up to six consecutive taxable years. (Reference House Bill
1324, 2013, and Indiana Code
6-3.1-34.6) State Natural Gas Tax Credit:
Effective January 1, 2014, a carrier operating a commercial natural gas vehicle (NGV) in Indiana may claim a credit equal to 12% of the road taxes imposed on its consumption of compressed natural gas in the previous year. The credit is refundable. (Reference House Bill
1324, 2013, and Indiana Code
6-6-4.1-1 and 6-6-12)
Federal Tax Credits for Fueling Equipment:
The Alternative Fuel Vehicle Refueling Property credit applies to CNG, LNG, and propane fueling equipment.Consumers who purchase qualified residential fueling equipment prior to December 31, 2013 may receive a federal tax credit of up to $1,000. Businesses and investors who purchased fueling equipment may receive a federal tax credit of 30% of the equipment and installation cost, up to $30,000. If you installed a fueling station in 2012, you have until April 15 to prepare and file your income tax return for 2012. Learn more about the Alternative Fuel Vehicle Refueling Property credit here