Missouri Laws and Incentives

Listed below are the summaries of all current Missouri laws, incentives, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

State Incentives

Alternative Fueling Infrastructure Tax Credit

For tax years beginning on or after January 1, 2015, an income tax credit is available for the cost of constructing a qualified alternative fueling station. The credit is 20% of the costs directly associated with the purchase and installation of any alternative fuel storage and dispensing equipment or electric vehicle supply equipment (EVSE), up to $1,500 for individuals or $20,000 for businesses. Tax credits may be carried forward for two years and may be transferred or sold, but will be forfeited if a tax credit recipient stops dispensing alternative fuel or electricity for vehicle charging. Eligible fuels include any mixture of biodiesel and diesel fuel, as well as fuel containing at least 70% of the following alternative fuels: ethanol, compressed natural gas, liquefied natural gas, liquefied petroleum gas (propane), hydrogen, and electricity. This tax credit expires on January 1, 2018. For more information, see the Missouri Alternative Fuel Infrastructure Tax Credit website. (Reference Missouri Revised Statutes 135.710)

Idle Reduction Weight Exemption

Any vehicle equipped with qualified idle reduction technology may exceed the state's gross and axle weight limits by up to 550 pounds to compensate for the additional weight of the idle reduction technology. The vehicle operator must be able to provide proof of the weight of the idle reduction technology and that it is fully functional at all times. (Reference Missouri Revised Statutes 304.180)

Natural Gas Vehicle (NGV) Weight Exemption

A vehicle primarily powered by natural gas may exceed the state's gross vehicle weight limits by a weight equal to the difference between the weight of the vehicle with the natural gas tank and fueling system and the weight of a comparable vehicle with a diesel tank and fueling system. The NGV maximum gross weight may not exceed 82,000 pounds. (Reference Senate Bill 8, 2017, and Missouri Revised Statutes 304.180)

Alternative Fuel Vehicle (AFV) Emissions Inspection Exemption

Vehicles powered exclusively by electricity, including low-speed vehicles, hydrogen, or fuels other than gasoline that are exempt from motor vehicle emissions inspection under federal regulation, are exempt from state emissions inspection requirements. (Reference Missouri Revised Statutes 643.315)

Liquefied Petroleum Gas (Propane) Equipment Exemption

An individual that operates a propane fueling station equipped with a quick-connect nozzle may sell propane without verifying that vehicles re-fueling at the station have a valid Missouri alternative fuel decal, as long as the appropriate motor fuel tax is collected at the time of fueling. (Reference Senate Bill 8, 2017, and Missouri Revised Statutes142.869)

Laws and Regulations

Renewable Fuel Distributor and Vehicle Manufacturer Liability Protection

Renewable fuel refiners, suppliers, terminals, wholesalers, distributors, retailers, and motor vehicle manufacturers and dealers are not liable for property damages related to a customer's purchase of renewable fuel, including blends, if the consumer selected the fuel for use. Motor fuel blended with any amount of renewable fuel will not be considered a defective product provided the fuel compiles with motor fuel quality regulations. (Reference Missouri Revised Statutes 414.255)

State Energy Plan

The Missouri Department of Economic Development's Division of Energy developed a comprehensive state energy plan to include information related to alternative fuels and advanced vehicles, as well as electric generation, fuels and resource extraction, energy distribution, energy usage, energy storage, energy-related land use issues, energy prices, energy security, and emergency resource planning. For more information, see the Missouri Energy Plan website. (Reference Executive Orders 15-02, 2015, and 14-06, 2014)

Ethanol Blend Mandate

All gasoline offered for sale at retail stations within the state must contain 10% ethanol (E10). This requirement is waived only if a distributor is unable to purchase ethanol or ethanol-blended gasoline at the same or lower price as unblended gasoline. Premium gasoline is exempt from this requirement. Ethanol is defined as fuel that is derived from an agricultural source and that meets ASTM specification D4806. (Reference Missouri Revised Statutes 414.255)

Alternative Fuel Tax

Compressed natural gas (CNG) used as a vehicle fuel is taxed on a gasoline gallon equivalent (GGE) basis as follows:

  • $0.05 per GGE until December 31, 2019;
  • $0.11 per GGE from January 1, 2020, until December 31, 2024; and
  • $0.17 per GGE from January 1, 2025, and beyond.

Liquefied natural gas (LNG) used as a vehicle fuel is taxed on a diesel gallon equivalent (DGE) basis as follows:
  • $0.05 per DGE until December 31, 2019;
  • $0.11 per DGE from January 1, 2020, until December 31, 2024; and
  • $0.17 per DGE from January 1, 2025, and beyond.

Liquefied petroleum gas (propane) used as a vehicle fuel is taxed on a gasoline gallon basis as follows:
  • $0.05 per gallon until December 31, 2019;
  • $0.11 per gallon from January 1, 2020, until December 31, 2024; and
  • $0.17 per gallon from January 1, 2025, and beyond.

In the absence of a National Institute of Standards and Technology definition of GGE, a GGE will be equal to 5.66 pounds (lbs) of natural gas for CNG and a DGE will be equal to 6.06 lbs. for LNG. If natural gas is used for fueling vehicles as well as for another use, such as home heating, the tax applies to the entire amount of natural gas consumed, unless the Missouri Department of Revenue approves a separate meter and accounting system.

(Reference Senate Bill 8, 2017, and Missouri Revised Statutes 142.803 and 142.869)

Alternative Fuel Vehicle (AFV) Decal

The state motor fuel tax does not apply to passenger vehicles, certain buses, or commercial vehicles that are powered by an alternative fuel, if the vehicles obtain an AFV decal. Owners or operators of such vehicles that also own or operate a personal fueling station must pay an annual alternative fuel decal fee, as listed below. Alternative fuel motor vehicles licensed as historic vehicles are exempt from the alternative fuel decal requirement.

Gross Vehicle Weight (GVW)Type of VehicleDecal Fee
18,000 pounds (lbs.) or lessPassenger, School Bus, or Commercial$75
18,001 lbs.-36,000 lbs.Farm or Farming Transportation with an 'F' License Plate$100
18,001 lbs.-36,000 lbs.Passenger-Carrying and Other Motor Vehicles$150
36,000 lbs. or moreFarm or Farming Transportation with an 'F' License Plate$250
36,000 lbs. or moreAll Other Motor Vehicles$1,000

Model year 2018 and later plug-in hybrid electric vehicles have a decal fee of one-half of the annual decal fees listed above for their corresponding vehicle type and GVW.

Owners and operators of passenger motor vehicles, buses, or commercial motor vehicles that are powered by compressed natural gas (CNG), liquefied natural gas (LNG), or liquefied petroleum gas (propane), may continue to apply for and use the alternative fuel decal in lieu of paying the CNG, LNG, and/or propane tax, as long as the owner/operator has installed a fueling station used solely to fuel his or her vehicle(s). If an owner or operator of a motor vehicle powered by propane that bears an alternative fuel decal refuels at an unattended propane fueling station, such owner or operator shall not be eligible for a refund of the motor fuel tax paid at the time of refueling. For more information, see the Missouri Department of Revenue Special Fuel Decals page.

(Reference Senate Bill 8, 2017, and Missouri Revised Statutes 142.803 and 142.869)

Liquefied Petroleum Gas (Propane) License

Any individual that transports, handles, or sells propane at retail, or is in the business of installing or modifying related equipment, must first register with the Missouri Department of Agriculture. (Reference Missouri Revised Statutes 323.060)

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled vehicle with a maximum speed of 25 miles per hour (mph) that is manufactured in compliance with safety standards specified in Title 49 of the Code of Federal Regulations, section 571.500. A low-speed vehicle may not operate on a street or highway with a posted speed limit greater than 35 mph. (Reference Missouri Revised Statutes 304.029)

Biodiesel Use Requirement

At least 75% of the Missouri Department of Transportation (MoDOT) vehicles and heavy equipment that use diesel fuel must be fueled with biodiesel blends of at least 20% (B20), if such fuel is commercially available. The blended biodiesel fuel will be considered commercially available if the incremental purchase cost compared to conventional diesel fuel is not more than $0.25. To the maximum extent practicable, MoDOT may obtain funding for the incremental cost of the blended biodiesel fuel from the state's Biodiesel Fuel Revolving Fund. (Reference Missouri Revised Statutes 414.365 and 414.407)

Alternative Fuel Vehicle (AFV) Acquisition and Alternative Fuel Use Requirements

A state agency that operates a vehicle fleet consisting of 15 vehicles or more must ensure that at least 50% of new vehicles purchased over a defined biennial period are capable of operating using an alternative fuel. Excess acquisitions of AFVs may be credited towards future biennial goals. If a state agency fails to meet a biennial acquisition goal, purchases of any non-AFVs are not permitted until the goals are met or an exemption or goal reduction has been granted. In addition, 30% of the fuel purchased annually for use in operating state fleet vehicles must be alternative fuels. (Reference Missouri Revised Statutes 414.400 and 414.410)

Alternative Fuel Promotion

The Missouri Alternative Fuels Commission (Commission) promotes the continued production and use of alternative transportation fuels in Missouri. The Commission submits a report annually to the governor and general assembly and provides recommendations on changes to state law to facilitate the sale and distribution of alternative fuels and alternative fuel vehicles; promotes the development, sale, distribution, and consumption of alternative fuels; promotes the development and use of alternative fuel vehicles and technology that will enhance the use of alternative and renewable transportation fuels; educates consumers about alternative fuels; and develops a long-range plan for the state to reduce consumption of petroleum fuels. For more information, see the Missouri Alternative Fuels Commission page. (Reference Missouri Revised Statutes 414.420)

State Fleet Biodiesel Fuel Use

The Missouri Biodiesel Fuel Revolving Fund uses the money generated by the sale of Energy Policy Act of 1992 credits to cover the incremental cost of purchasing fuel containing biodiesel blends of at least 20% (B20) for state fleet vehicle use. (Reference Missouri Revised Statutes 414.407)