Search Federal and State Laws and Incentives

Alternative Fuel Tax Exemption

Taxes imposed on alternative fuels used in official vehicles for the United States government or any Delaware state government agency, including volunteer fire and rescue companies, are waived. Alternative fuel retailers must obtain a fuel supplier’s license from the Delaware Department of Transportation (DelDOT), and operators or owners of vehicles using alternative fuel must obtain either a special fuel user’s license from DelDOT or pay the special fuel tax.

(Reference Delaware Code Title 30, Chapter 51, Subchapter II)

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled motor vehicle, other than a truck, with a gross vehicle weight rating of less than 2,500 pounds that is capable of operating at a speed of at least 20 miles per hour (mph) but not greater than 25 mph on a paved surface. A low-speed vehicle may not operate on roads with a posted speed limit greater than 35 mph but may cross a highway that has a posted speed limit greater than 35 mph. The vehicle must comply with safety standards contained in Title 49 of the Code of Federal Regulations, section 571.500, and meet state insurance, titling, and registration requirements.

(Reference Delaware Code Title 21, Chapter 21, Subchapter I, Section 2113A)

Idle Reduction Requirement

On-road heavy-duty motor vehicles with a gross vehicle weight rating of greater than 8,500 pounds may not idle for more than three consecutive minutes when the vehicle is stationary. Violators are subject to penalties of up to $500 for each offense. Heavy-duty vehicles subject to this regulation include long-haul and delivery trucks as well as transit and school buses. Emergency fire, rescue, and lifesaving vehicles are exempt. Additional exemptions may also apply.

(Reference Delaware Administrative Code Title 7, Section 1145-5.0)

Idle Reduction Weight Exemption

Any motor vehicle equipped with qualified idle reduction technology may exceed the state gross, axle, tandem, or bridge weight limits by up to 400 pounds to account for the weight of the technology. The additional weight may not exceed the actual weight of the idle reduction unit. To qualify for the exemption, the vehicle operator must also be able to prove the weight of the idle reduction technology and demonstrate that the technology is fully functional.

(Reference Delaware Code Title 21, Chapter 45, Section 4503f)

Vehicle-to-Grid Energy Credit

Retail electricity customers with at least one grid-integrated electric vehicle (EV) may qualify to receive kilowatt-hour credits for energy discharged to the grid from the EV’s battery at the same rate that the customer pays to charge the battery. A grid-integrated EV is defined as a battery-powered motor vehicle that has the ability for two-way power flow between the vehicle and the electric grid as well as communications hardware and software that allow for external control of battery charging and discharging.

(Reference Delaware Code Title 26, Chapter 10, Section 1001 and 1014g)

Low Emission Vehicle (LEV) Standards

All Model Year (MY) 2014 and later passenger cars and light- and medium-duty vehicles must meet California motor vehicle emissions and compliance requirements specified in Title 13 of the California Code of Regulations. Certain exceptions apply, including the zero emission vehicle sales requirements.

(Reference Delaware Administrative Code Title 7, Sections 1140-6.0)

Alternative Fuel Vehicle (AFV) Rebates

As part of the Delaware Clean Transportation Incentive Program, the Delaware Department of Natural Resources and Environmental Control (DNREC) offers rebates for the purchase or lease of a new AFV. The following rebate amounts are applicable for vehicles purchased or leased before December 31, 2022:

Eligible EVs and PHEVs may not have a retail price above $60,000. Eligible applicants include Delaware residents, businesses, organizations, and government entities. Rebates are limited to six vehicles per fleet. Additional terms and conditions apply. For more information, including application guidelines and participating dealerships, see the DNREC Clean Vehicle Rebate Program website.

Electric Vehicle (EV) Charging Station Rebates

As part of the Delaware Clean Transportation Incentive Program, Delaware Department of Natural Resources and Environmental Control (DNREC) offers rebates of up to $3,500 per port for the purchase of Level 2 EV charging stations for use at public, workplace, commercial, and multi-unit dwelling (MUD) locations. Installation, labor, and other costs are not eligible. The maximum number of rebates an applicant may receive varies based on applicant type and EV charging station locations:

Rebates are available on a first-come, first-served basis. Eligible applicants include MUDs, businesses, organizations, non-profits, government entities, schools, colleges, and universities. Additional terms and conditions apply. For more information, including application guidelines, see the DNREC Electric Vehicle Charging Equipment Rebates website.

Heavy-Duty Natural Gas Vehicle (NGV) Rebates

As part of the Delaware Clean Fuel and Transportation Incentive Program, the Delaware Department of Natural Resources and Environmental Control (DNREC) offers rebates of up to $20,000 for new or leased Class 7 or Class 8 dedicated NGVs. Eligible applicants include individuals, businesses, non-profits, or governmental entities located in Delaware or who have an in-state affiliate. Applicants must submit proof of order and payment to receive the rebate; a copy of the lease agreement is required for leased vehicles. Fleets are limited to five rebates per funding cycle. All vehicles purchased through this rebate program must be titled and registered in the state. Rebates are awarded on a first-come, first-served basis. Additional terms and conditions apply. For more information, including application deadline and eligibility requirements, see the Delaware Heavy-Duty Vehicle Rebate Program website.

Electric Vehicle (EV) Charging Station Rebate - Delaware Electric Cooperative (DEC)

DEC offers a one-time $200 rebate, in the form of a bill credit and an additional $5 monthly bill credit to customers if they do not charge their EVs during Beat the Peak alerts. For more information, including eligibility requirements, see the DEC Beat the Peak website.

Medium- and Heavy-Duty (MHD) Emissions Reductions Funding

The Delaware Department of Natural Resources and Environmental Control (DNREC) provides funding for MHD on-road and limited off-road emission reduction projects. This grant program is funded by Delaware’s portion of the Volkswagen (VW) Environmental Mitigation Trust. For more information, including program guidance, application deadlines, and funding availability, see the DNREC VW Mitigation Plan website.

Electric Cooperative Investments

Unclaimed electric cooperative capital credits may be used on transportation electrification investments. Credit allocation reports are required annually by January 20.

(Reference Delaware Code Title 26, Chapter 9, Subchapter I, Section 909)

Smart Grid Infrastructure Development

All grid-integrated, plug-in electric vehicles in use by eligible customers must meet applicable safety and performance standards put forth by the National Electric Code, Institute of Electric and Electronic Engineers, UL, and the Society of Automotive Engineers to ensure that net metering customers comply with the electric supplier’s interconnection tariffs and operating guidelines.

(Reference Delaware Code Title 26, Chapter 10, Section 1014e)

Public Utility Definition

An entity that owns, operates, controls, or manages a facility that supplies electricity to the public exclusively to charge plug-in electric vehicles is not defined as a public utility.

(Reference Delaware Public Service Commission 19-0377)

Electric Vehicle (EV) Time-Of-Use (TOU) Rate– Delmarva Power

Delmarva Power offers a TOU rate option to residential customers that own EVs. For more information, see the Delmarva Power EV Programs website.

State Agency Electric Vehicle (EV) Fee Authorization

State agencies may charge a use fee for EV charging station operated on state-owned or -leased property. The fee may not exceed the combined costs of electricity used by the EV charging station and EV charging station maintenance.

(Reference Senate Bill 21, 2021, 83 Del.Laws, c.179, Section 1, and amends Delaware Code Title 29, Chapter 80, Subchapter 2, Section 8062)

Climate Action Plan

The Delaware Department of Natural Resources and Environmental Control (DNREC) released the Delaware Climate Action Plan(Plan) with strategies and actions the state can take to reduce greenhouse gas (GHG) emissions by 26% to 28% from 2005 levels by 2025. The Plan includes reducing transportation sector GHG emissions by promoting the shift to zero emission vehicles and expanding access to vehicle charging infrastructure. The Plan also recommends a goal of 17,000 electric vehicle sales per year by 2030. For more information, see the DNREC Climate Action Plan page.

Electric Vehicle (EV) Infrastructure Support

Delaware utilities joined the National Electric Highway Coalition (NEHC), committing to create a network of direct current fast charging (DCFC) stations connecting major highway systems from the Atlantic Coast to the Pacific of the United States. NEHC utility members agree to ensure efficient and effective fast charging deployment plans that enable long distance EV travel, avoiding duplication among coalition utilities, and complement existing corridor DCFC sites. For more information, including a list of participating utilities and states, see the NEHC website.

Delaware's National Electric Vehicle Infrastructure (NEVI) Planning

The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Delaware Department of Transportation (DelDOT) to submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office) beginning August 1, 2022, describing how the state intends to distribute NEVI funds. The submitted plan must be established according to NEVI guidance.

For more information about Delaware’s NEVI planning process, see the DelDOT Delaware’s Vehicle Electrification Future website. To review Delaware’s NEVI plan, see the Joint Office State Plans for EV Charging website.

Electric Vehicle (EV) Charging Station Local Permitting Policies

By July 1, 2023, municipalities having a population of more than 30,000 people must adopt an ordinance that establishes a permitting procedure for the installation of curbside residential EV charging stations. The ordinance must

• Require EV charging station installation is completed by a licensed electrician;
• Require the written permission of the owner of the property on which the EV charging station will be installed;
• Establish reasonable restrictions on the type of EV charging stations that may be installed;
• Provide that the municipality must approve or deny a permit within 90 days of receipt of a permit application; and,
  
• Provide that an EV charging station may not affect a proposed State right-of-way or easement area without approval by the Department of Transportation.

(Reference Senate Bill 187, 2022 and Delaware Administrative Code Title 22, Chapter 1, Section 119)