Montana Laws and Incentives
Listed below are the summaries of all current Montana 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
Montana’s National Electric Vehicle Infrastructure (NEVI) Planning
The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Montana Department of Transportation (MDT) to submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted plans must be established according to NEVI guidance.
For more information about MDT’s collaboration with the Energy Office at the Montana Department of Environmental Quality for the NEVI planning process, see the Montana DEQ Alternative Fuels & Transportation website. To review Montana’s NEVI plan, see the Joint Office State Plans for EV Charging website.
Heavy-Duty Vehicle Replacement Grants
The Montana Department of Environmental Quality (DEQ) offers grants for the replacement of qualified medium- and heavy-duty diesel transit buses with new all-electric, diesel hybrid, compressed natural gas, or propane shuttle or transit buses. Funding is also available for the replacement of school buses and airport ground support vehicles with all-electric vehicles. The program is funded by Montana’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including program guidance and the application, see the DEQ Alternative Fuels & Transportation website.
Ethanol Production Incentive
Montana-based ethanol producers are eligible for a tax incentive of $0.20 per gallon of ethanol produced solely from Montana agricultural products or ethanol produced from non-Montana agricultural products when Montana products are unavailable. If the producer uses non-Montana based agricultural products, the amount of the tax incentive per gallon is reduced proportionately, based on the percentage of non-Montana based agricultural or wood products used in production. The tax incentive is available to a facility for the first six years from the date production begins and is available for ethanol distributors starting the first quarter after production begins.
Ethanol eligible for the incentive must be blended with gasoline for sale as ethanol-blended gasoline in Montana, exported from Montana for sale as ethanol-blended gasoline, or used in the production of ethyl butyl ether for use in reformulated gasoline. To receive the tax incentive, an ethanol producer must use at least 20% Montana products to produce the ethanol in the first year of production, must use at least 25% Montana products in the second year of production, and must increase the amount of Montana products by 10% each year thereafter.
(Reference Montana Code Annotated 15-70-522)
Ethanol Production Facility Property Tax Exemption
Equipment used to produce ethanol from grain is exempt from state property taxes during construction of an ethanol manufacturing facility and for 10 years after the manufacturing facility construction is complete.
(Reference Montana Code Annotated 15-6-220)
Biodiesel Tax Refund
A licensed distributor who pays the special fuel tax on biodiesel may claim a refund equal to $0.02 per gallon of biodiesel sold during the previous quarter if the biodiesel is made entirely from components produced in Montana. Additionally, the owner or operator of a retail motor fuel outlet may claim a refund equal to $0.01 per gallon of biodiesel purchased from a licensed distributor if the biodiesel is made entirely from components produced in the state. Refund requests must be filed on a quarterly basis.
(Reference Montana Code Annotated 15-70-433)
Biodiesel Tax Exemption
Biodiesel producers that produce biodiesel from waste vegetable oil feedstock are exempt from the state special fuel tax. Waste vegetable oil is used cooking oil gathered from restaurants or commercial food processors. Biodiesel producers must annually register with the Montana Department of Transportation and report biodiesel production and consumption by February 15 of the following year.
(Reference Montana Code Annotated 15-70-401 and 15-70-405)
Alternative Fuel Production Property Tax Incentives
Biodiesel, ethanol, renewable diesel, and sustainable aviation fuel production facilities may be eligible for property tax abatements. Additional terms and conditions apply.
(Reference Montana Code Annotated 15-6-157, 15-6-158, 15-24-3111)
Utility / Private Incentives
Northwestern Energy - Montana
Northwestern Energy is an investor-owned utility (IOU) that operates in Montana. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Northwestern Energy website.
Residential Incentives
No incentives currently offered
No incentives currently offered
No incentives currently offered
Non-Residential Incentives
No incentives currently offered
No incentives currently offered
No incentives currently offered
Northwestern Energy - Montana
Northwestern Energy is an investor-owned utility (IOU) that operates in multiple states. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Northwestern Energy website.
Residential Incentives
No incentives currently offered
No incentives currently offered
No incentives currently offered
Non-Residential Incentives
No incentives currently offered
No incentives currently offered
No incentives currently offered
Laws and Regulations
Carbon Penalty Prohibition
Local governments are prohibited from imposing penalties, fees, or taxes on carbon or carbon use, including but not limited to the carbon content of fuels or electricity in the transportation sector.
(Reference Montana Code Annotated 7-1-111 )
Public Utility Definition
An entity that operates electric vehicle supply equipment is not defined as a public utility.
(Reference Montana Code Annotated 69-8-803)
Regional Electric Vehicle (REV) West Plan
Montana joined Arizona, Colorado, Idaho, Nevada, New Mexico, Utah, and Wyoming (Signatory States) in signing the REV West memorandum of understanding (MOU) to create an Intermountain West Electric Vehicle (EV) Corridor that will make it possible to seamlessly drive an EV across the Signatory States’ major transportation corridors.
In 2019, the Signatory States signed a revised REV West MOU to update their EV corridor goals based on progress to date. Signatory States are committed to:
- Educate consumers and fleet owners to raise EV awareness, reduce range anxiety, and increase EV adoption;
- Coordinate on EV charging station locations to achieve a consistent user experience across Signatory States;
- Use and promote the REV West Voluntary Minimum Standards for EV charging stations and explore opportunities for implementing the standards in Signatory States;
- Identify and develop opportunities to incorporate EV charging stations into planning and development processes such as building codes, metering policies, and renewable energy generation projects;
- Encourage EV manufacturers to stock and market a wide variety of EVs within the Signatory States;
- Identify, respond to, and collaborate on funding opportunities to support the development of the plan; and
- Support the build-out of direct current (DC) fast charging stations along EV corridors through investments, partnerships, and other mechanisms.
The Signatory States maintain a coordination group composed of senior leadership from each state who meet on a quarterly basis and report on the above actions. For more information, see the REV West website.
Fuel-Efficient Vehicle Acquisition Requirements
All vehicles purchased for state agency use must meet or exceed the current federal Corporate Average Fuel Economy standard and agencies must develop and implement programs to reduce fuel consumption in agency vehicles. Certain state vehicles are exempt from these requirements.
(Reference Montana Code Annotated 2-17-416 and 2-17-417)
Ethanol Fuel Blend Use Requirement
State government agencies and universities owning or operating motor vehicles capable of using ethanol-blended gasoline must take all reasonable steps to ensure that the operators of those vehicles fuel with ethanol-blended gasoline if it is commercially available within the vehicle’s operating area and competitively priced as compared to conventional gasoline.
(Reference Montana Code Annotated 2-17-414)
Electric Vehicle (EV) and Plug-In Hybrid Electric Vehicle (PHEV) Annual Fee
In addition to standard registration fees, EVs and PHEVs are subject to an annual fee. Fee amounts vary based on gross vehicle weight rating (GVWR):
| GVWR | Annual EV Registration Fee | Annual PHEV Registration Fee |
|---|---|---|
| 5,999 pounds (lbs.) or below | $130 | $70 |
| 6,000 lbs. to 10,000 lbs. | $190 | $100 |
| 10,001 lbs. to 26,000 lbs. | $340 | $210 |
| Greater than 26,001 lbs. | $1,100 | $700 |
The revenue from the annual fee will be apportioned to the highway restricted account. Beginning July 1, 2028, EV registration fees will be reduced by 30% for private residents.
(Reference Montana Code Annotated 61-3-572 15-70-126)
Electric Vehicle (EV) and Plug-In Hybrid Electric Vehicle (PHEV) Permanent Registration Fee
In addition to standard registration fees, EVs and PHEVs are subject to a one-time registration fee. Fee amounts vary based on gross vehicle weight rating (GVWR):
| GVWR | One-Time EV Registration Fee | One-Time PHEV Registration Fee |
|---|---|---|
| 5,999 pounds (lbs.) or below | $260 | $140 |
| 6,000 lbs. to 10,000 lbs. | $380 | $200 |
The revenue from the annual fee will be apportioned to the highway restricted account.
(Reference Montana Code Annotated 61-3-562 and 61-3-573)
Compressed Natural Gas (CNG) and Propane Tax
Retail sales for CNG and propane used to operate vehicles are subject to a modified tax based on energy content. CNG is taxed per 120 cubic feet, measured at 14.73 pounds per square inch absolute base pressure. Propane is taxed per gallon. Exceptions may apply.
(Reference Montana Code Annotated 15-70-711)
Compressed Natural Gas (CNG) and Propane Dealer License
A person may not act as a CNG or propane dealer unless the person holds a valid CNG or propane dealer’s license issued by the Montana Department of Transportation.
(Reference Montana Code Annotated 15-70-702)
Energy Performance Contract Authorization
Government entities in Montana are authorized to enter into energy performance contracts to pay for energy efficiency improvements with energy savings, including savings from the use of energy-efficient vehicles.
(Reference Montana Code Annotated 90-4-1101)
Low-Speed Electric Vehicle (EV) Access to Roadways
A low-speed EV may operate only on highways with posted speed limits up to 25 miles per hour (mph) and may not cross a highway with a posted speed limit greater than 45 mph. A low-speed EV must have four wheels, reach speeds of at least 20 mph but not more than 40 mph, and may only be operated by a person with a low-speed restricted driver’s license. A low-speed EV must comply with Title 49 of the Code of Federal Regulations, section 565.
(Reference Montana Code Annotated 61-1-101, 61-5-122, 61-8-378)
Electric Vehicle (EV) Charging Station Tax and Electric Meter Requirement
The sale of electricity by public EV charging stations is subject to a tax of $0.03 per kilowatt-hour. EV charging stations at private residences or homeowners’ associations are exempt. Tax revenue will be apportioned to the highway restricted account.
Beginning July 1, 2025, all new public charging stations and all public legacy charging stations must install a meter capable of measuring electricity delivered to the charging station. Additionally, beginning July 1, 2028, all public legacy charging stations must be equipped with a metering device capable of measuring electricity delivered to motor vehicles. The charging station owner is responsible for paying the cost of meter installation.
(Reference Montana Code Annotated 15-70-803)
Medium-Speed Electric Vehicle (EV) Access to Roadways
A medium-speed EV may operate only on highways with posted speed limits up to 45 miles per hour (mph). A medium-speed EV must be treated as a light-duty vehicle for purposes of titling and registration. A medium-speed vehicle is one that has a maximum speed of 45 mph, a gross vehicle weight rating of 5,000 pounds or less, and complies with Title 49 of the Code of Federal Regulations, section 565.
(Reference Montana Code Annotated 61-1-101 and 61-8-377)