Michigan Propane Fleet Vehicles
One-stop for huge savings on vehicle fuel, maintenance, fueling infrastructure, and tailpipe emissions.
Propane Fleet Vehicle Types
Dedicated & Bi-Fuel Propane Engines
Dedicated Engine
Propane fueled vehicles are available from original equipment manufacturers (OEMs) and can be ordered from the OEMs direct.
Contact your local vehicle dealer and ask them about ordering your dedicated propane engine vehicle.
Bi-Fuel Engine
Vehicles can be converted by a qualified system retrofitter (QSR) to light, medium or heavy-duty vehicles.
Propane conversions take up to two days to install.
Michigan Propane Conversion Companies
Qualifying Models: Ford, Dodge, GMC, RAM, Toyota, and many more.
Any 2015 ICE or newer can be converted (MPGA requires 2020 or newer).
Autogas Technical Training Available
Autogas Technical Training Available
Qualifying Models: Ford
2012 or newer ICE vehicle can be converted (MPGA requires 2020 or newer).
Autogas Technical Training Available
Qualifying Models: Ford, Lincoln and Mercury, Chevrolet and GMC*
2020 and older vehicles can be converted (MPGA requires 2020 or newer).
* Certain engines qualify. See EPA certified list.
Easy to Install Infrastructure
| Options | Onsite Standard Private station | Onsite Advanced Private station |
|---|---|---|
|
Fleet Size
|
Best for a fleet of less than 50 |
Best for 50+ vehicles |
|
Set-Up
|
Onsite 1,000 – 3,000-gallon tank |
Larger gallon tank, canopy & multiple dispensers |
|
Propane Supplier Owns Infrastructure |
The fleet is responsible for site preparation: crash protection and electrical.
Cost for Fleet: $1,500-$15,000 (site preparation) |
The fleet is responsible for site preparation: crash protection and electrical for a two-dispenser setup.
Cost for Fleet: $5,000-$75,000 (site preparation) |
|
Fleet Owns Infrastructure |
The fleet will need to account for purchasing the propane tank, pump, motor, and dispenser.
Cost for Fleet: $20,000-$60,000 (infrastructure) + $1,500-$15,000 (site preparation) |
The fleet is responsible for site preparation: crash protection and electrical for a two-dispenser setup.
Cost for Fleet: $60,000-$225,000 (infrastructure) + $5,000-$75,000 (site preparation) |
|
Private or Public Network |
|---|
|
Fleets with limited space, or fleets needing more fueling locations along their routes can take advantage of this option with no infrastructure investment. Network refueling stations are accessible 24/7 through a card lock system.
If a network is not currently available in your area, a propane supplier may create one for your fleet, if it’s large enough. Alternatively, multiple fleets can team up to provide adequate load for requesting a refueling network. |
Propane Infrastructure Installers
Work With Your Propane Provider to
Get the Lowest Cost Per Mile
There are 380 Propane Marketers in Michigan, Use the Map to Find One in Your Local Area
Propane Public Fueling Stations
& Service Centers
Rebate Application
Receive up to $16,000 from the MPGA
The MPGA is offering fleet owners propane vehicle rebates
Apply Today! Rebates are available first come, first serve, while funding lasts.
- New Propane Vehicle – $4,000/vehicle, up to $16,000
New Propane Vehicle Conversion (EPA) – $4,000/unit, up to $16,000
- New propane school bus – $4,000/bus, up to $16,000
- Used propane school bus (not lease) –$2,000/bus, up to $4,000
- Vehicle Information
- Applicant information
- Propane Supplier information
- Attach invoice for new propane vehicle or propane retrofit system
Return completed application in 1 of 3 ways:
- Email to: mpga@kdafirm.com
- Fax to: (517) 485-9408
- Mail to:
MPGA
629 W. Hillsdale St.
Lansing, MI 48933OR
- Upload Completed Application Below
Questions? Contact the Rebate Team: (517) 312-0097
Michigan Grants
COMING SOON
Includes propane vehicles. Buses, medium heavy-duty or heavy heavy-duty trucks, marine engines, locomotives, non-road engines, equipment, or vehicles used in: construction, handling of cargo (including at a port, airport, or train yard), agriculture, mining, industry and energy production.
A total of $375,960 is available. All grant proposals should be between $25,000 (the minimum) and $375,960 (the maximum).
CONTACT:
Dan Zbozien, EGLEZbozienD@Michigan.gov(517) 290-5722
MI Clean School Bus Grant – $125 million to purchase no- or low-greenhouse gas emission school buses, including alternative fuel vehicles, such as fueling stations, as eligible expenses.
Who Can Apply:
- Any School District
- School District must be the applicant, no third-party vendors
What:
Propane School Buses:
- 40% Costs Covered – prioritized school districts
- 25% Costs Covered – non-prioritized school districts
- 1 School Bus minimum, 10 School Bus maximum, or 50% of your fleet, whichever is fewer.
Detail Launch:
November 4th, 2024
Grant Deadline:
May 2nd, 2025
Contact:
Troy Hansbarger, Michigan Dept. of Education
hansbargert@michigan.gov
Katrina Morris, Executive Director, Michigan Association of Pupil Transportation
kmorris@wsesd.org
Add-Ons (Each qualifying add-on increases the funding amount by 5%):
High need district/SAIPE: School Districts listed in the Small Area Income and Poverty Estimates (SAIPE) School District estimates for 2022 as having 15% or more students living in poverty.
Tribal School: School districts that are federally funded through the Bureau of Indian Affairs, School districts that receive basic support payments under section 7703(b)(1) of Title 20 for children who reside on Indian land
NAAQS: School districts residing in a county currently designated as in nonattainment or maintenance status for NAAQS
Free/Reduced Lunch: School Districts with the percentage of students receiving free and reduced lunch for the 2022-23 school year greater than or equal to 70%
Rural School District: Limited to school districts identified with locale codes “42 rural distant or “43 rural remotes” by the National Center for Educational Statistics
ADA-Accessible Bus School districts wishing to utilize funding to purchase an ADFA-accessible school bus
The Michigan Department of Education (MDOE) encourages school districts to stack funding; Stackable funding must be received on January 1st or after. The Michigan Propane Gas Association’s propane vehicle rebate qualifies as additional funding. If you apply, stack the MPGA’s rebate funding with it!
National EPA Grants
CLOSED
Includes propane vehicles. Eligible diesel vehicles, engines, and equipment include School buses, Class 5 – Class 8 heavy-duty highway vehicles, Locomotive engines, Marine engines, Non-road engines, equipment or vehicles used in construction, handling of cargo (including at ports or airports), agriculture, mining or energy production (including stationary generators and pumps).
CONTACT:DERA Helplinedera@epa.gov877-623-2322
Low-No Program funds will be awarded to assist the purchase or lease of buses that use low- or no-emission propulsion technologies, including related equipment or facilities. At least 25% of funds are reserved for low-emission projects, which include propane vehicles.
Eligible applicants for the Low- or No-Emission Program include designated recipients, States (including territories and Washington D.C.), local governmental authorities, and Indian Tribes. Except for projects proposed by Indian tribes, all proposals for projects in rural (non-urbanized) areas must be submitted by a State, either individually or as a part of a statewide app
If you have difficulty accessing the full announcement electronically, please contact:
FTA Office of Program Management
Eligible applicants for the Low- or No-Emission Program include designated recipients, States (including territories and Washington D.C.), local governmental authorities, and Indian Tribes. Except for projects proposed by Indian tribes, all proposals for projects in rural (non-urbanized) areas must be submitted by a State, either individually or as a part of a statewide app
If you have difficulty accessing the full announcement electronically, please contact:
FTA Office of Program Management
National Tax Credit Information
If you’re installing propane fueling infrastructure between January 1, 2023, and December 31, 2032, you may qualify for the Alternative Fuel Vehicle Refueling Property Credit. Businesses can receive:
- 6% of installation costs (up to $100,000), or
- 30% of installation costs (up to $100,000) if labor and apprenticeship rules are met.
This credit applies to fuel dispensers and essential parts like installation labor. Tax-exempt entities, including state and local governments, may also qualify for the same credit.
For residential installations, consumers can claim a credit of up to 30% of the cost (up to $1,000) for propane fueling equipment installed at their homes.
To qualify, fueling equipment must be installed in a low-income or rural area. Check if your location qualifies using the 30C Tax Credit Eligibility Locator.
For more information, see IRS Form 8911.
The Section 45Z Clean Fuel Production Credit, established under the Inflation Reduction Act, offers a tax incentive for U.S. producers of clean transportation fuels, including propane, based on the fuel’s lifecycle greenhouse gas (GHG) emissions. Beginning in 2025, Section 45Z replaces the Section 40A and 40B tax credits for producing clean transportation fuel. The 45Z credit is available for fuels produced and sold between January 1, 2025, and December 31, 2027.
For more, see the IRS guidance and FAQs on this credit.
