Natural Gas Laws and Incentives in Idaho

The list below contains summaries of all Idaho laws and incentives related to natural gas.

State Incentives

Alternative Fuels Tax Exemption and Refund for Government Fleet Vehicles

State excise tax does not apply to special fuels, including gaseous special fuels, when used in state or federal government owned vehicles. Special fuels include natural gas, propane, hydrogen, and fuel suitable for use in diesel engines. In addition, state excise tax paid on special fuels used in state or federal government vehicles is subject to a refund, as long as the tax was originally paid directly to a special fuel vendor. The tax refund is not available for special fuels used while idling. Idling means a period of time greater than 15 minutes when the motor vehicle is stationary with the engine operating. (Reference Idaho Statutes 63-2401, 63-2402, and 63-2423)

Medium- and Heavy-Duty Diesel Vehicle Replacement Rebates

The Idaho Department of Environmental Quality (DEQ) offers rebates for the replacement of qualified medium- and heavy-duty diesel vehicles with new diesel or alternative fuel vehicles. Rebates are available for medium- and heavy-duty trucks; school, shuttle, and transit buses; freight switchers; airport ground support equipment; and forklifts and port cargo handling equipment. Vehicles must meet model year requirements, which vary by vehicle type. Funding amounts are based on vehicle type, fuel type (e.g., diesel, alternative fuel, all-electric), and applicant type (e.g., government, non-government). Funding is competitively awarded, and special consideration is given for projects located in air quality priority areas, areas with higher impact on sensitive populations, and oxides of nitrogen priority counties. First-round applications are due January 31, 2019. The program is funded by Idaho's portion of the Volkswagen Environmental Mitigation Trust. For more information, including program guidance and the application, see the DEQ Volkswagen Settlement website.

Laws and Regulations

Natural Gas Tax

Compressed natural gas used as a special motor fuel is subject to the state fuel excise tax rate of $0.32 per gasoline gallon equivalent, measured at 5.66 lbs. or 126.67 cubic feet at a base temperature of 60 degrees Fahrenheit and a pressure of 14.7 lbs. per square inch. Liquefied natural gas is also subject to the excise tax rate of $0.349 per diesel gallon equivalent, measured at 6.06 lbs. (Reference Idaho Statutes 63-2402 and 63-2424)

More Laws and Incentives

To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.