Montana EV Tax Credits & Incentives

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Thinking of opting for an electric model of some sort in the Helena area and wondering if there is any MT EV tax incentives that you may be eligible for? Currently, the state of Montana only has fundings for non-individual organizations, so if you’re buying a personal EV, you won’t be able to enjoy any of the state tax credits and incentives. However, you may qualify for the federal EV tax credit and there is many Honda specials at Honda of Great Falls. If you’re curious about what available Montana electric vehicle tax credits and incentives there are, keep on reading below!


Available Montana EV Tax Credits & Incentives 

Heavy-Duty Vehicle Replacement Grants

The Montana Department of Environmental Quality (DEQ) has grants when qualified medium- and heavy-duty diesel transit buses are replaced with new all-electric, diesel hybrid, compressed natural gas, or propane shuttle or transit buses. Funding is also available for replacing school buses and airport ground support vehicles with all-electric vehicles. 

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. Here are other key details of this MT EV tax incentive:

  • This tax incentive is available to a facility for the first six years from the date 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.

Ethanol Production Facility Property Tax Exemption

The 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. 

Biodiesel Tax Refund

A licensed distributor who pays the special fuel tax on biodiesel may be able to 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. Also, 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. 

Alternative Fuel and Vehicle Production Property Tax Incentive

Alternative fuel production facilities– including biodiesel, biomass, biogas, and ethanol production facilities– may qualify for a reduced property tax rate of 3% of market value. Renewable energy manufacturing facilities also qualify. Also, temporary property tax rate abatements are available for qualified biodiesel, biomass, biogas, and ethanol production facilities. The tax abatements are available during facility construction and for the first 15 years after the facility begins operation. The total time of the qualifying period may not exceed 19 years. 

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 if they want to be elibile for this tax exemption. 

Private Electric Vehicle Incentive 

Besides MT EV tax incentives, there is also one that’s private, which is known as the Plug-In Electric Vehicle (PEV) Infrastructure Support. Montana utilities has joined the National Electric Highway Coalition (NEHC) to build a network of direct current fast (DC Fast) charging stations connecting major highway systems from the Atlantic Coast to the Pacific of the US. This will include efficient and effective fast charging deployment plans that enable long distance EV travel, avoid duplication among coalition utilities, and complement existing corridor DC fast charging sites. Thanks to this incentive, you’ll be able to go far from Missoula and nearby areas while finding fast charging more accessible. 

Learn More About Montana EV Tax Credits from Honda of Great Falls 

Have any more questions about Montana electric vehicle tax credits and incentives? Feel free to reach out to us! Our finance experts in Great Falls can also help you secure you a competitive price for a new Honda electric or hybrid model.

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