Electricity Laws and Incentives in Montana
The list below contains summaries of all Montana laws and incentives related to electricity.
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 )
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)
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)
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)
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.
State Incentives
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.
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.
More Laws and Incentives
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