There are multiple methods of measuring a taxpayer’s use of CNG.
Dedicated CNG Meter
If you have a dedicated CNG meter at your fueling station, take the month end meter reading and subtract the prior month’s month-end meter reading. Report the resulting cubic feet on your tax return.
If your meter measures at different level, such as CCF (100 cubic feet) or MCF (1,000 cubic feet), you need to convert it to CF.
If it is in CCF (100 cubic feet), multiply by 100 and report that number on your tax return.
If it is in MCF (1,000 cubic feet), multiply by 1000 and report that number on your tax return.
Retail or Private Pump
If you have a retail pump or private pump that reports GGEs of CNG for each disbursement, take the total GGEs for the month and multiply it by 126.67 to get your total cubic feet. Report that number on your tax return.
Monthly Utility Bill
If you are using your monthly utility bill from your natural gas provider, use only the dedicated meter for motor fuel and verify that the unit of measure reported on the bill is in CF. If it is in CF, report that number on your tax return.
If it is in CCF (100 cubic feet), multiply by 100 and report that number on your tax return.
If it is in MCF (1,000 cubic feet), multiply by 1000 and report that number on your tax return.
If it is in therms, you must convert therms into CF per 900 BTUs (British Thermal Units).
To determine CF per 900 BTUs, multiply the therms by 100,000, then divide that total by 900. Report that number on your tax return.
