Even with relatively lower energy prices forecasted for 2016, business owners can receive financial incentives for investing in alternative fuels. The U.S. Congress extended the Alternative Fuel Infrastructure Tax Credit through December 31, 2016, which includes a $30,000 tax incentive for businesses to install propane refueling equipment.
More American businesses are turning to propane as a cleaner and more cost-effective fuel for many applications. Propane’s industrial uses are steadily increasing, from commercial lawnmowers to forklifts, and research continues to find new ways to use this valuable fuel.
A growing number of business owners with small to mid-sized fleets are capitalizing on historically low propane prices by converting gasoline or diesel-powered vehicles to run on propane. Propane typically costs 50 percent less than diesel fuel, so businesses can quickly recoup the cost of engine conversion. Because it burns cleaner than many other fuels, using propane can help engines last longer with fewer scheduled maintenance intervals.
Some municipalities are also making the switch to propane for their fleets. School districts are switching to propane-powered school buses, which are cheaper to operate than standard buses and start easily even when temperatures plummet to 40 degrees below zero. And propane-fueled buses warm up in about 10 minutes, reducing idling time and fuel use. Propane’s high octane provides plenty of power, while engines run more quietly with fewer emissions.
Consumers can also qualify for financial incentives to install propane refueling equipment for residential use. Under the same Alternative Fuel Infrastructure incentive, consumers can qualify for a $1,000 home refueling tax credit for 2016.
Currently, propane is the most widely used alternative fuel for home cooking and heating in the United States, but consumers have found additional ways to use propane around the home. For example, tankless water heaters save energy and need less space, while providing plenty of hot water. Unlike water heaters that hold hot water in tanks, always using energy, tankless heaters heat the water only when the faucet is turned on. For homeowners who value flexibility and reliability, propane is fast becoming a smart energy source for many home uses.
Cenex propane is available through select distributors. Your local dealer can answer any questions you may have about propane and related services for your business or home. To find a propane supplier near you, visit the Cenex dealer locator.