Idaho Laws and Incentives

Listed below are the summaries of all current Idaho laws, incentives, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

State Incentives

Medium- and Heavy-Duty Diesel Vehicle Replacement Rebates

The Idaho Department of Environmental Quality (IDEQ) 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, 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. The program is funded by Idaho's portion of the Volkswagen (VW) Environmental Mitigation Trust. For more information, including program guidance and the application, see the IDEQ VW Settlement website.

Electric Vehicle Supply Equipment (EVSE) Funding

The Idaho Department of Environmental Quality (IDEQ) is accepting applications for funding of direct current (DC) fast charging EVSE in strategic locations within Idaho. EVSE along specific highway corridors will be prioritized, as will stations within 0.5 miles of a major highway with 24 hour public access.

The program is funded by Idaho's portion of the Volkswagen (VW) Environmental Mitigation Trust. For more information, including how to apply and prioritized EVSE site characteristics, see the IDEQ VWSettlement website.

Plug-In and Hybrid Electric Vehicle Exemption from Vehicle Testing Requirements

Electric vehicles, plug-in hybrid electric vehicles, and hybrid electric vehicles are exempt from state motor vehicle inspection and maintenance programs. For more information, see the Idaho Vehicle Inspection Program website. (Reference Idaho Statutes 39-116B)

License Exemptions for Biodiesel Production for Personal Use

A biodiesel producer that produces up to 5,000 gallons of biodiesel fuel in a calendar year for personal consumption is exempt from the requirement to obtain an Idaho motor fuel distributor's license. (Reference Idaho Statutes 63-2427A)

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)

Utility/Private Incentives

Commercial Electric Vehicle Supply Equipment (EVSE) Incentive - Idaho Power

Eligible Idaho Power business customers may apply for funding to install EVSE for electric passenger vehicles, forklifts, or other transportation technologies. Incentives are offered in the following amounts for the purchase and installation of EVSE:

Fleet EVSE ApplicationMaximum AmountLimit per Customer
Passenger vehicles50% of project costs, up to $7,500 per site for Level 1 or 2 EVSE$15,000
Forklifts50% of project costs, up to $7,500 per site for EVSE$7,500
Buses, refrigerated trucking, refuse trucks, and airport ground support equipment50% of project costs, up to $20,000 per site for EVSE$20,000

Additional terms and conditions apply. For more information, visit the Idaho Power EVSE Incentive Offering website.

Laws and Regulations

Regional Electric Vehicle (REV) West Plan

Idaho joined Arizona, Colorado, Montana, Nevada, New Mexico, Utah, and Wyoming (Signatory States) in signing the REV West memorandum of understanding (MOU) to create an Intermountain West Electric Vehicle (EV) Corridor that will make it possible to seamlessly drive an EV across the Signatory States' major transportation corridors.

In 2019, the Signatory States signed a revised REV West MOU to update their EV corridor goals based on progress to date. Signatory States are committed to:
  • Educate consumers and fleet owners to raise EV awareness, reduce range anxiety, and increase EV adoption;
  • Coordinate on EV charging station locations to achieve a consistent user experience across Signatory States;
  • Use and promote the REV West Voluntary Minimum Standards for EV charging stations and explore opportunities for implementing the standards in Signatory States;
  • Identify and develop opportunities to incorporate EV charging stations into planning and development processes such as building codes, metering policies, and renewable energy generation projects;
  • Encourage EV manufacturers to stock and market a wide variety of EVs within the Signatory States;
  • Identify, respond to, and collaborate on funding opportunities to support the development of the plan; and
  • Support the build-out of direct-current fast charging stations along EV corridors through investments, partnerships, and other mechanisms.
The Signatory States maintain a coordination group composed of senior leadership from each state who meet on a quarterly basis and report on the above actions. For more information, see the REV West website.

Support for Autonomous Vehicles

Under direction of the Office of the Governor, the Idaho Transportation Department (ITD) established the Connected and Autonomous Vehicle (CAV) Testing and Deployment Committee (Committee). The Committee will work to identify state agencies with jurisdiction to support the testing and deployment of CAVs, coordinate with the identified agencies about how to administer the testing of CAVs on roads, review existing state statues and administrative rules that impede the testing and deployment of CAVs on roads, and identify strategic partnerships to leverage the benefits of CAVs. ITD submitted a report on the Committee's findings to the Office of the Governor on November 1, 2018. (Reference Executive Order 2018-01)

Electric Vehicle Supply Equipment Regulation Exemption

Individuals, corporations, or other legal entities that sell electricity for the purpose of charging plug-in electric vehicles are not under the jurisdiction of the Idaho Public Utility Commission. (Reference Idaho Statutes 61-119)

Propane Dealer Requirements

Propane dealers must meet education, experience, and examination qualifications, and hold a valid individual license. Each propane fueling facility must be licensed. A fee of up to $500 is required for each license application, original license, and annual license renewal. (Reference Idaho Statutes 54-5301 to 54-5318)

Biodiesel Definition

Biodiesel is defined as any fuel derived in whole or in part from agricultural products, animal fats, or the wastes from these products, and is suitable for use in diesel engines. A biodiesel blend is defined as any fuel produced by blending biodiesel with petroleum-based diesel to produce a fuel suitable for use in diesel engines. (Reference Idaho Statutes 63-2401)

Ethanol Blended Fuel Definition

Ethanol blended fuel, such as gasohol, is defined as any gasoline blended with 10% or more of anhydrous ethanol. (Reference Idaho Statutes 63-2401)

Plug-In Electric Vehicle (PEV) Fee

In addition to standard registration fees, all-electric vehicle owners must pay an annual fee of $140 and plug-in hybrid electric vehicle owners must pay an annual fee of $75. Neighborhood electric vehicles are exempt from the fee. (Reference Idaho Statutes 49-457)

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 pounds (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. For more information, see the Idaho Fuels Taxes and Fees website. (Reference Idaho Statutes 63-2402 and 63-2424)

Neighborhood Electric Vehicle (NEV) Access to Roadways

An NEV is defined as a self-propelled, electrically-powered, four-wheeled motor vehicle that does not produce emissions and conforms to the definition and requirements for low-speed vehicles specified in Title 49 of the Code of Federal Regulations, section 571.500. An NEV must be titled, registered, and insured according to state law and may only be operated by a licensed driver. NEVs may not be driven on any highway with a speed limit greater than 35 miles per hour (mph), or across any highway with a speed limit greater than 45 mph. (Reference Idaho Statutes 49-123, 49-402, and 49-663)