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 7-1-116)
Electric Vehicle (EV) Charging Station Requirements
The sale of electricity by public EV charging stations with a capacity greater than 25 kilowatts 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.
Public charging stations must register with MDT within 30 days of operation and the rate must be posted at the charging site. As of 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 Senate Bill 228, 2025 and Montana Code Annotated 15-70-801 through 805 )
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 vehicle class (unladen gross weight):
| Vehicle Class | Annual EV Registration Fee | Annual PHEV Registration Fee |
|---|---|---|
| Class 1: 5,999 pounds (lbs.) or below | $130 | $70 |
| Class 2: 6,000 lbs. to 10,000 lbs. | $190 | $100 |
| Class 3: 10,001 lbs. to 26,000 lbs. | $340 | $210 |
| Class 4: 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 and 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 vehicle class (unladen gross weight):
| Vehicle Class | One-Time EV Registration Fee | One-Time PHEV Registration Fee |
|---|---|---|
| Class 1: 5,999 pounds (lbs.) or below | $260 | $140 |
| Class 2: 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)
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 required the Montana Department of Transportation (MDT) to submit an annually updated EV Infrastructure Deployment Plan (Plan) for fiscal years 2022 through 2026 to their FHWA Division Office, describing how the state intended to distribute NEVI funds and their physical and cybersecurity strategies, and including a Community Engagement Outcomes Report. The submitted plans must address updated 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.
More Laws and Incentives
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