Florida – Exemption for Natural Gas and Natural Gas Fuels

SALT Report 2584 – The Florida House of Representatives enacted legislation that creates a sales and use tax exemption for natural gas and natural gas fuel when placed into the fuel supply system of a motor vehicle. In addition to the sales and use tax exemption, the Bill also includes the following provisions:

  • The annual decal fee program for motor vehicles powered by alternative fuels is repealed effective January 1, 2014,
  • Establishes a fuel tax structure for natural gas used as a motor fuel similar to that for diesel fuel beginning January 1, 2019.  This provision exempts natural gas fuel from fuel taxes for five years
  • Expands the definition of “energy efficiency improvement” to include “installation of systems for natural gas fuel”
  • Creates the Natural Gas Fuel Fleet Vehicle Rebate Program to provide rebates for up to 50% of the costs of converting certain vehicles to natural gas-powered vehicles, and
  • Provides $6 million per year for 5 years from the General Revenue Fund to provide rebates to offset the costs of converting certain vehicles to natural gas-powered vehicles

The effective date of this Bill is January 1, 2014; however, the rebate provisions of the bill will take effect on July 1, 2013.

For Further Information

Florida House of Representatives – House Bill 579, Laws 2013