Incentives & Funding
The following list of resources, grants, funding, and incentives that support alternative fuel and advanced transportation technology. All funding program details are subject to change, please contact the funding agency for more information.
North Carolina Incentives and Grant Programs
- Clean Fuel Advanced Technology (CFAT): The CFAT project is funded by the N.C. Department of Transportation and administered by the North Carolina Solar Center. It is focused on reducing transportation related emissions in the 24 NC counties that do not meet national air quality standards. Up to $4.3 M is available for emission reduction technology subwards through 1-3 calls for projects process, the next call for projects is anticipated in late 2013/early 2014.
- Diesel Emission Reduction Grant: The NC Department of Environment and Natural Resources, Division of Air Quality (DAQ) is interested in providing incentive funding for projects that reduce diesel emissions.
- High Occupancy Vehicle (HOV) Lane Exemption: Qualified plug-in electric vehicles, dedicated natural gas vehicles, and fuel cell electric vehicles may use North Carolina HOV lanes, regardless of the number of occupants.
- Plug-In Electric Vehicle (PEV) Emissions Inspection Exemption: Qualified PEVs are exempt from state emissions inspection requirements. Other restrictions may apply.
- Alternative Fuel Tax Exemption: The retail sale, use, storage, and consumption of alternative fuels are exempt from the state retail sales and use tax. This tax exemption is only applicable to agriculture fuel use; on road fuel use is subject to motor fuels tax, not retail sales tax.
- Biodiesel Tax Exemption: An individual who produces biodiesel for use in that individual’s private passenger vehicle is exempt from the state motor fuel excise tax
- Propane/Autogas for Lawn Maintenance: This program is a research initiative that rewards customers with a $1,000 incentive toward the incremental cost of a new, dedicated propane mower in exchange for their commitment to provide feedback about mower performance and usage during the mowing season.
Federal Incentives and Grant Programs
Advanced Energy Research Project Grants: The Advanced Research Projects Agency – Energy (ARPA-E) was established within the U.S. Department of Energy and focuses on various concepts in multiple program areas including, but not limited to, vehicle technologies, biomass energy, and energy storage.
Alternative Fuel Excise Tax Credit: A tax credit in the amount of $0.50 per gallon is available for the following alternative fuels: compressed natural gas, liquefied natural gas, liquefied petroleum gas, fuel and compressed or liquefied gas derived from biomass. Expires December 31, 2013.
Alternative Fuel Infrastructure Tax Credit: Fueling equipment for natural gas, liquefied petroleum gas (propane), electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel installed between January 1, 2006, and December 31, 2013, is eligible for a tax credit of 30% of the cost, not to exceed $30,000.
Alternative Fuel Tax Exemption: Alternative fuels used in a manner that the Internal Revenue Service (IRS) deems as nontaxable are exempt from federal fuel taxes.
Ethanol Infrastructure Grants and Loan Guarantees: The Rural Energy for America Program (REAP) provides loan guarantees and grants to agricultural producers and rural small businesses to purchase renewable energy systems or make energy efficiency improvements.
Fuel Cell Motor Vehicle Tax Credit: A tax credit of up to $4,000 is available for the purchase of qualified light-duty fuel cell vehicles. Tax credits are also available for medium- and heavy-duty fuel cell vehicles; credit amounts are based on vehicle weight. Expires December , 31 2014
Idle Reduction Technology Excise Tax Exemption: Qualified on-board idle reduction devices and advanced insulation are exempt from the federal excise tax imposed on the retail sale of heavy-duty highway trucks and trailers.
Qualified Plug-In Electric Drive Motor Vehicle Tax Credit: Up to a $7,500 tax credit is available for the purchase of a new qualified plug-in electric drive motor vehicle that draws propulsion using a traction battery that has at least four kWh of capacity, uses an external source of energy to recharge the battery, has a gross vehicle weight rating of up to 14,000 pounds, and meets specified emission standards.
Diesel Emission Reduction Act: Since 2008, EPA has funded nearly 60,000 pieces of clean diesel technology through the National Clean Diesel Campaign. These technologies include emissions and idle control devices, aerodynamic equipment, engine and vehicle replacements, and alternative fuel options.