Search Federal and State Laws and Incentives

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)

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.

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 (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 and the Diesel Emissions Reduction Act. For more information, including program guidance and the application, see the IDEQ VW Settlement website.