Biodiesel Laws and Incentives in Montana

The list below contains summaries of all Montana laws and incentives related to biodiesel.

State Incentives

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)

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)

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)

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 )

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)

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