Montana Electric Laws and Incentives

State Incentives

Alternative Fuel Vehicle (AFV) Conversion Tax Credit

An income tax credit is available to businesses or individuals for up to 50% of the equipment and labor costs for converting vehicles to operate using alternative fuels. Qualified alternative fuels are compressed and liquefied natural gas, liquefied petroleum gas, hydrogen, electricity, and fuel containing at least 85% ethanol or methanol. A maximum credit of $500 is available for the conversion of vehicles with a Gross Vehicle Weight Rating (GVWR) of 10,000 pounds (lbs.) or less and $1,000 for vehicles with a GVWR of more than 10,000 lbs. The credit must be applied in the year the conversion is made, and the seller of an alternative fuel may not receive a credit for converting their own vehicles to operate on the alternative fuel they sell. (Reference Montana Code Annotated 15-30-164)

State Laws and Regulations

Medium-Speed Electric Vehicle Access to Roadways

A medium-speed electric vehicle, which has a maximum speed of 35 miles per hour (mph), a gross vehicle weight of 5,000 pounds or less, and is in compliance with Title 49 of the Code of Federal Regulations, part 565, may only be operated on a highway for which the posted speed limit does not exceed 45 mph. A medium-speed electric vehicle must be treated as a light vehicle for purposes of titling and registration. (Reference Senate Bill 72, 2009, and Montana Code Annotated 61-1-101)

Alternative Fuel Promotion

The state of Montana encourages the use of alternative fuels and fuel blends to the extent that doing so produces environmental and economic benefits to the citizens of Montana. The state legislature recommends several guidelines for the development of a state alternative fuels policy, including the following: 1) encourage the use of self-sufficient markets; 2) any state alternative fuels program should have measurable benefits and be communicated to the public; 3) state and local governments should be encouraged to set an example with their vehicle fleets by using alternative fuels and fuel blends. The state also encourages production of alternative fuels and fuel blends. (Reference Montana Code Annotated 90-4-1011)