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Rebates & Incentives

The Minnesota Propane Association (MPA) and National Propane Gas Association (NPGA) currently have several incentives available to promote safe and expanded propane use. We want to share these available programs with you and help you to take full advantage of these incentives to improve your propane system. Please contact us to discuss these incentives and ensure that program funding is still available prior to beginning your project. We would be more than happy to help you!


Appliance Rebate Programs

The following rebates apply to new construction, change of energy source, or replacement:

  • Save $800 when you install a propane water heater!

  • Save $400 when you install a propane furnace or boiler!

  • Save $100 when you install a propane clothes dryer!

  • Save $1,000 when you install a combination boiler (space heating and hot water)!

Please contact McMahon Oil prior to replacing or installing your new propane appliances for additional information and requirements on the Appliance Rebate Programs.

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Autogas Incentive

Residents of MN that purchase a new propane autogas vehicle or convert an existing gasoline engine or install a propane diesel injection system with an EPA certified system may qualify for a $4,000 incentive. All eligible purchases or retrofit installations must occur during the incentive program period. All other program requirements must be met, contact us for additional information.


Please contact McMahon Oil prior to converting or purchasing an autogas vehicle for additional information and requirements on the Autogas program. Program is scheduled to end when funds are exhausted.


Energy Pod

The Propane Energy Pod is a home energy package that delivers superior comfort and efficiency compared with all-electric homes. Using high-efficiency propane gas appliances for major applications provides optimal energy performance unmatched by electric alternatives. For a competitive advantage in home performance, comfort, and efficiency, build your propane homes with these five applications:


  • Space Heating: Cost-efficient heating with a more comfortable and consistent warmth.

  • Water Heating: Faster hot water with up to 50 percent cost savings compared with electric options.

  • Cooking: The joy and control of cooking with gas, just like the professionals do.

  • Clothes Drying: Faster drying for up to 20 percent reduced energy use.

  • Fireplaces: Significantly warmer and more energy efficient than electric or wood fireplaces.


See a listing of available Energy Pod packages here, or contact McMahon Oil for additional information.

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Farm Incentive Program

Sponsored by the Propane Education & Research Council (PERC), the Propane Farm Incentive Program is a research program that documents the performance of today’s high-efficiency, propane-powered equipment and technologies used on the farm. Farmers who enroll in the program can earn a financial incentive up to $5,000 in exchange for simply reporting the real-world performance data of their equipment. If you haven’t looked at propane-powered equipment yet, you should. Compared with diesel or gasoline equipment, it can cut fuel costs, has fewer harmful emissions, and offers proven refueling options delivered directly to your farm. Additionally, propane irrigation engines are also less expensive than equivalent horsepower diesel engines. Qualifying equipment includes specific models of:


  • Irrigation Engines

  • Grain Dryers

  • Generators

  • Barn & Greenhouse Heaters

  • Flame Weed Control Units


Please contact McMahon Oil for additional information and requirements on the Farm Incentive program or visit for additional information.

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