Electricity Laws and Incentives in Minnesota

The list below contains summaries of all Minnesota laws and incentives related to electricity.

State Incentives

Electric School Bus and Infrastructure Grants

The Minnesota Department of Commerce provides grants to public, private, and charter school districts for the purchase of new electric school buses or repower of existing school buses with electricity. Grant awards may cover up to 95% of vehicle and associated infrastructure costs. For more information, see the Minnesota Department of Commerce Electric School Bus Program website.

(Reference Minnesota Statutes 216C.374)

Electric Vehicle (EV) Charger Grants

The Minnesota Pollution Control Agency provides grants of up to $150,000 for the installation of public direct-current (DC) fast chargers. Eligible DC fast chargers must be dual port and have a capacity of at least 150 kilowatts. Grantees must provide a 20% funding match. Eligible applicants include businesses; nonprofit organizations; and, state, local, and Tribal governments. Additional access and uptime requirements apply. This program is funded by Minnesota’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including funding amounts and eligibility requirements, see the Minnesota Pollution Control Agency’s Volkswagen Settlement Grants and EV Fast Chargers Grant websites.

Electric Vehicle (EV) Toll Credit Pilot Program

The Minnesota Department of Transportation (MnDOT) is offering a one-time account credit to eligible EV drivers for use in Minnesota toll lanes. Drivers who purchase or lease a new or used plug-in hybrid electric vehicle may receive a $125 credit, and drivers who purchase or lease a new or used all-electric vehicle may receive a $250 credit. Eligible vehicles must be purchased or leased between November 1, 2019, and October 31, 2025. For more information, see the MnDOT E-ZPass website.

Minnesota’s National Electric Vehicle Infrastructure (NEVI) Planning

The U.S. Department of Transportation’s (DOT) NEVI Formula Program required the Minnesota Department of Transportation (MnDOT) 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 Minnesota’s NEVI planning process, see the MnDOT EV Infrastructure Plan website.

Laws and Regulations

Electric Vehicle (EV) Charger Intentional Damage or Theft Regulation

Individuals may not damage, steal, remove, sever, or break energy transmission equipment, including EV chargers. Violators may face imprisonment and a maximum fine of $10,000.

(Reference Minnesota Statute 609.593)

Electric Vehicle (EV) Charger Requirements

EV chargers installed in Minnesota must:

1. Be able to charge any make, model, or type of EV;
2. Comply with state safety standards and standards set by the Society of Automotive Engineers; and
3. Be capable of bi-directional charging once electrical utilities achieve a cost-effective ability to draw electricity from EVs connected to the utility grid.

These requirements may not apply if the installations require significant upgrades.

(Reference Minnesota Statutes 325F.185)

Electric Vehicle (EV) Charging Tariff

Each public utility selling electricity for retail must file a tariff with the Minnesota Public Utilities Commission (PUC) to allow a customer to purchase electricity solely for the purpose of charging a EV, neighborhood electric vehicle, or medium-speed electric vehicle. The tariff must:

• Contain either a time-of-day or off-peak electricity rate;
• Allow the customer to purchase electricity from the utility’s current mix of energy supply sources or from entirely renewable energy sources; and
• Be available to the residential customer class.

The public utility will make the tariff available to customers within 60 days of PUC approval. At any time, the utility may make revisions to the tariff based on changing costs or conditions. Each public utility providing an EV charging tariff must report quarterly to the PUC on the number of customers who have participated in the tariff, the total amount of electricity sold under the tariff, and any other data the PUC requires.

(Reference Minnesota Statutes 216B.1614)

Electric Vehicle (EV) and Natural Gas Vehicle (NGV) Initiatives

All solicitation documents that include the purchase of passenger automobiles issued under the jurisdiction of the Minnesota Department of Administration must assert the intention of the state to begin purchasing all-electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), neighborhood electric vehicles (NEVs), and natural gas vehicles (NGVs). For this requirement to apply, vehicles must meet the state’s performance specifications and have a total life-cycle cost of ownership less than or comparable to that of gasoline-powered vehicles.

An EV is defined as a motor vehicle that can be powered by an electric motor drawing current from rechargeable storage batteries, fuel cells, or other portable sources of electrical current, and meets or exceeds applicable requirements in Title 49 of the Code of Federal Regulations, section 571, and future regulations. A PHEV is defined as an EV that contains an internal combustion engine and uses a battery-powered electric motor to deliver power to the drive wheels. When connected to the electrical grid via an electrical outlet, the vehicle must be able to recharge its battery. The vehicle must have the ability to travel at least 20 miles powered substantially by electricity. A NEV is defined as an electrically powered motor vehicle with three or four wheels that can attain a speed of at least 20 miles per hour but not exceed 25 miles per hour. An NGV is defined as motor vehicle that is capable of being propelled by natural gas, including compressed natural gas and liquefied natural gas.

(Reference Minnesota Statutes 16C.138 and 169.011)

Electric Vehicle (EV) and Plug-In Hybrid Electric Vehicle (PHEV) Registration Fees

Beginning Jan. 1, 2026, the Minnesota Driver and Vehicle Services will adjust EV and PHEV registration fees by an amount relative to the vehicle’s manufacturer’s suggested retail price. Between Jan. 1, 2026, and June 30, 2027, the additional registration fee will be a minimum of $150 for EVs and $75 for PHEVs. Beginning July 1, 2027, the additional registration fee will be a minimum of $100 for EVs and $50 for PHEVs. For more information, including the fee schedule, see the Driver and Vehicle Services Vehicle Fees website.

(Reference Minnesota Statutes 168.013)

Electricity as Vehicle Fuel Working Group

The commissioners of transportation, public safety, management and budget, revenue, and commerce must convene an Electricity as Vehicle Fuel Working Group to:

• Evaluate, promote, and provide recommendations to facilitate the development and integration of electricity as vehicle fuel within the state’s transportation, energy, commercial, industrial, and residential sectors;
• Analyze opportunities and barriers to the use of electricity as vehicle fuel;
• Develop a roadmap with policy and funding recommendations to address electric vehicle (EV) surcharges; and
• Analyze policies in other states related to fuel assessment methodology for EVs.

The working group must convene by Sept. 15, 2025, and submit a report of its recommendations to the governor and relevant legislative committees by Feb. 13, 2026. For more information, see the Legislative Coordinating Commission Working Group website.

(Reference Chapter 8, Article 2, Section 118 of the 1st Special Session Laws, 2025)

Public Electric Vehicle (EV) Charger Operator License Requirement

Beginning July 1, 2027, public EV charger operators must obtain a license to operate as a public EV charger from the commissioner at the Minnesota Department of Revenue. Operators must renew their license annually. Additional requirements apply.

(Reference Minnesota Statute 296A.051)

Public Electric Vehicle (EV) Charger Tax

Beginning July 1, 2027, public EV charger operators must pay an excise tax of $0.05 per kilowatt-hour of electricity used to charge EVs. Public EV chargers that provide electricity at no cost and EV chargers with a capacity less than 50 kilowatts are exempt. Operators must report total kilowatt-hours sold each month. Additional requirements apply.

(Reference Chapter 8, Article 2, Sections 76-77 of the Legislature’s 1st Special Session Laws, 2025 and Minnesota Statutes 296A.073 and 296A.075)

Public Utility Definition

An individual, corporation, or other legal entity that resells compressed natural gas as a vehicular fuel or electricity to recharge a battery that powers an electric vehicle is not defined as a public utility.

(Reference Minnesota Statutes 216B.02)

Regional Electric Vehicle (REV) Midwest Plan

Minnesota joined Illinois, Indiana, Michigan, and Wisconsin (Signatory States) in signing the REV Midwest memorandum of understanding (MOU) to accelerate vehicle electrification in the Midwest. Signatory States are committed to:

• Accelerate medium- and heavy-duty fleet electrification;
• Collaborate on regional electric vehicle (EV) charger siting and deployment analyses with a focus on commercial routes;
• Standardize regulations, messaging, and customer experience related to EVs across state lines;
• Evaluate opportunities for workforce development;
• Identify historically disadvantaged communities for equitable EV charger development and EV adoption; and,
• Educate consumers and fleet owners to raise EV awareness, reduce range anxiety, and increase EV adoption.

The Signatory States maintain a coordination group composed of senior leadership from each state who meet and report on the above actions. For more information, see the REV Midwest Partnership Announcement.

Retail Electric Vehicle (EV) Charging Equipment Labeling and Inspection Requirements

Retail EV chargers must display the price per kilowatt-hour in whole cents or tenths of a cent or indicate that the electricity is free of charge. If more than one price might apply, the terms that determine each price must be displayed. Retail EV chargers must also display the power level of the EV charger, type of energy transfer, and cost of any additional fees that may apply to use the EV charger. Labeling must be compliant with Title 16 of the Code of Federal Regulations, Section 309, and with the National Electric Code NFPA 70, Article 625. The Minnesota Department of Commerce must inspect EV chargers for compliance annually. EV charger owners must pay an inspection fee of $100 per port. Additional requirements apply.

(Reference Reference Minnesota Statute 239.90)

State Agency Vehicle Acquisition and Management Requirement

When purchasing motor vehicles, state agencies must prioritize vehicles that operate on alternative fuels. Priority is based on fuel type in the following order:

1. Electric vehicles
2. Hybrid electric vehicles
3. Vehicles that use alternative fuels, including biodiesel blends of 20% (B20) or greater, compressed or liquefied natural gas, ethanol blends of 70% (E70) or greater, hydrogen, or propane
4. Gasoline or diesel vehicles

High priority vehicle types may be rejected if the vehicle type is incapable of carrying out its purpose or the total cost of ownership is more than 10% higher than the next vehicle in the preference list. Emergency and law enforcement vehicles are exempt from this requirement. State agencies must also, among other things, encourage state employees to fuel vehicles with alternative fuels when available and increase the use of renewable fuels derived from agricultural products. The Minnesota Department of Administration, in collaboration with the Departments Agriculture, Commerce, Natural Resources, and Transportation, as well as the Pollution Control Agency, must report progress on fleet vehicle acquisitions in the public dashboard for state fleet reporting and information management. The dashboard must also include recommendations for new or adjusted goals, directives, or legislative initiatives to meet fleet vehicle acquisition requirements. For more information, see the Minnesota Office of Enterprise Sustainability website.

(Reference Minnesota Statutes 16C.135, 16C.137, and 16C.138)

Zero Emission Vehicle (ZEV) Sales Requirements and Low Emission Vehicle (LEV) Standards

Minnesota has adopted the California motor vehicle emissions standards and compliance requirements specified in Title 13 of the California Code of Regulations. Beginning January 1, 2024, these regulations apply to all passenger cars, light-duty trucks, and medium-duty vehicles. Manufacturers must meet the greenhouse gas emissions standard and the ZEV production and sales requirements. For more information, see the Clean Cars Minnesota website.

(Reference Minnesota Administrative Rules Chapter 7023.025 and 7023.0300)

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