Do You Qualify for a Propane Service Tax Credit?


Tax time is right around the corner. When filing your 2013 tax returns, speak with your tax professional about any of these commercial and home propane tax credits you may qualify for.


Residential Energy Efficiency Tax Credit

  • Eligible Property: Home propane appliances, including water heaters, furnaces, boilers, heat pumps, central air conditioners, and circulating fans used in a qualifying furnace.
    • Must be installed and in use at the taxpayer’s primary residence.
    • Propane home furnaces and boilers must meet an annual fuel use efficiency of 95 or higher.
    • Propane water heaters must have an energy factor of at least 0.82 or a thermal efficiency of at least 90 percent.
    • Only purchases made in 2011, 2012 or 2013 qualify.
    • Must be new and in compliance with applicable performance and safety standards.
    • Incentive: The credit covers costs up to $150. Water heaters are eligible for a tax credit of up to $300. Personal tax credit is limited to $500 for appliances purchased in 2011, 2012 or 2013.
      • Taxpayer is ineligible for tax credit if the credit limit has been claimed in any previous year.
      • Past credits earned by a taxpayer from 2006-2010 under this credit are applied toward this limit.

Business Tax Credit

  • Eligible Property: New or renovated homes completed in 2012 and 2013 that reduce heating and cooling energy consumption by 50 percent compared to the 2006 International Energy Conservation Code (IECC).
  • Incentive: Up to $2,000 applied to builders, contractors or developers.

Alternative Fuel Infrastructure Tax Credit

  • Eligible Property: Fueling equipment for natural gas, lp gas services, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel installed between Jan. 1, 2006 and Dec. 31, 2013.
    • Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit toward each location.
    • Incentive: Up to 30 percent of the cost, not to exceed $30,000.
      • Permitting and inspection fees are not included in covered expenses.
      • Consumers who purchased qualified residential fueling equipment prior to Dec. 31, 2013 may receive a tax credit of up to $1,000.
      • Unused credits that qualify as general business tax credits may be carried backward one year and carried forward 20 years.

Please consult your tax professional for more details about these special propane service incentives. For more ways to save with propane services, contact ThompsonGas today at 800-768-6612 or click here.


  1. Dan Maday on March 6, 2014 at 6:08 pm

    Does our new generator qualify for the propane service tax credit?

  2. pmwebmaster on March 19, 2014 at 1:30 pm

    Dan, it should qualify, but we recommend you check with your accountant before filing your taxes.