Natural Gas Laws and Incentives in Montana

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

State Incentives

Alternative Fuel Vehicle (AFV) Conversion Tax Credit

Businesses and individuals are eligible for an income tax credit of up to 50% of the equipment and labor costs for converting vehicles to operate using alternative fuels. Qualified alternative fuels are natural gas, propane, hydrogen, electricity, and fuels containing at least 85% ethanol, methanol, ether, or another alcohol. The maximum credit is $500 for the conversion of vehicles with a gross vehicle weight rating (GVWR) of 10,000 pounds (lbs.) or less and $1,000 for vehicles with a GVWR of more than 10,000 lbs. The credit is only available for the year the business or individual converts the vehicle. An alternative fuel seller may not receive a credit for converting its own vehicles to operate on the alternative fuel it sells. (Reference Montana Code Annotated 15-30-2320)

Laws and Regulations

Compressed Natural Gas (CNG) and Propane Dealer License

A person may not act as a CNG or propane dealer unless the person holds a valid CNG or propane dealer's license issued by the Montana Department of Transportation. (Reference Montana Code Annotated 15-70-702)

Compressed Natural Gas (CNG) and Propane Tax

Retail sales for CNG and propane used to operate vehicles are subject to a modified tax based on energy content. CNG is taxed per 120 cubic feet, measured at 14.73 pounds per square inch absolute base pressure. Propane is taxed per gallon. (Reference Montana Code Annotated 15-70-711)

More Laws and Incentives

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