Hydrogen Laws and Incentives in North Carolina

The list below contains summaries of all North Carolina laws and incentives related to hydrogen.

Laws and Regulations

Advanced Technology Vehicle Purchase Policy for Dealerships

Vehicle manufacturers may not prevent rural and other franchised dealers from obtaining, selling, or leasing electric, hydrogen, or automated vehicles.

(Reference North Carolina General Statues 20-305 and Senate Bill 356, 2023)

Alternative Fuel Vehicle (AFV) Acquisition Goal

North Carolina established a goal that at least 75% of new or replacement state government light-duty cars and trucks with a gross vehicle weight rating of 8,500 pounds or less must be AFVs or low emission vehicles.

(Reference North Carolina General Statutes 143-215.107C)

Clean Transportation Plan

The North Carolina Department of Transportation (DOT) must develop and submit a state-wide Clean Transportation Plan (Plan) by April 7, 2023, to meet North Carolina’s emission reduction and zero emission vehicle (ZEV) goals. The Plan must recommend actionable strategies for decarbonizing the transportation sector by:

• Increasing ZEV availability, sales, and usage to levels beyond current market projections;
• Reducing statewide vehicle miles traveled;
• Investing in clean transportation infrastructure;
• Increasing equitable access to clean mobility options;
• Increasing availability of non-vehicle transportation modes; and,
• Transitioning registered vehicles to zero- and low-emission fuels.

The Plan must also include considerations for transitioning medium- and heavy-duty (MHD) vehicles to ZEVs, as directed by the state’s participation in the Multi-State MHD ZEV Memorandum of Understanding.

(Reference Executive Order 80, 2018, and Executive Order 246, 2022)

Medium- and Heavy-Duty (MHD) Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of MHD ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the MHD ZEVs: Action Plan Development Process website.

Zero Emission Vehicle (ZEV) Deployment and Emissions Reductions Goals

North Carolina established the following goals to reduce statewide greenhouse (GHG) emissions:

• GHG emissions must be at least 50% below 2005 levels by 2030;
• Achieve net-zero emissions by 2050;
• Register at least 1,250,000 ZEVs by 2030; and,
• Increase the share of new passenger vehicle sales to 50% ZEVs by 2030.

To meet these goals, the North Carolina Policy Office must conduct a GHG emission analysis by January 8, 2023, that evaluates potential pathways for achieving net-zero GHG emissions across the state by 2050 and interim targets.

(Reference Executive Order 246, 2022)

Zero Emission Vehicle (ZEV) Requirements

State-owned vehicle fleets must prioritize ZEVs in the purchase or lease of new vehicles and use ZEVs for agency travel when feasible. Cabinet agencies must prioritize ZEVs in the purchase or lease of new medium- and heavy-duty (MHD) vehicles with a gross vehicle weight rating greater than 8,500 pounds. The Department of Administration (Department) developed the North Carolina Motor Fleet ZEV Plan (Plan). The Plan identifies the types of trips for which ZEV-use is feasible, recommends infrastructure necessary to support ZEV use, and develops ZEV procurement options and strategies. The Department provides information about each agency’s ZEV acquisitions and miles driven by vehicle type annually. For more information, see the Department’s Climate Change & Clean Energy: Plans & Progress website.

(Reference Executive Order 80, 2018 and Executive Order 271, 2022)

Zero Emission Vehicle (ZEV) Support

The North Carolina Department of Transportation (NCDOT), in coordination with the Department of Environmental Quality, developed a ZEV Plan to guide ZEV adoption in North Carolina and increase the number of ZEVs in the state to at least 80,000 by 2025. The ZEV Plan provides guidelines for establishing state-wide vehicle corridors, installing charging stations and other infrastructure, and incorporating best practices for increasing ZEV adoption. For more information, including the current number of ZEV registrations, see the NCDOT Climate Change & Clean Energy: Plans & Progress website.

(Reference Executive Order 80, 2018)

State Incentives

Alternative Fuel Tax Exemption

The retail sale, use, storage, and consumption of alternative fuels is exempt from the state retail sales and use tax.

(Reference North Carolina General Statutes 105-164.13 and 105-449.130)

Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Emissions Inspection Exemption

Qualified light-duty EVs and FCEVs are exempt from state emissions inspection requirements. Other restrictions may apply.

(Reference North Carolina General Statutes 20-4.01 and 20-183.2)

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