Search Federal and State Laws and Incentives

Alternative Fuel Vehicle Annual Fee

Owners of natural gas vehicles (NGVs) and propane powered vehicles are required to pay an annual license fee, based on gross vehicle weight rating (GVWR), instead of motor fuel excise taxes. The fee is calculated as follows:

To determine the actual annual license fee imposed per registration year, multiply the appropriate dollar amount given in the above schedule by the motor vehicle fuel tax rate in cents per gallon effective on July 1 of the preceding calendar year, and divide the resulting amount by $0.12. There is an additional $5 handling fee for each license issued.

(Reference Revised Code of Washington 82.38.075)

Alternative Fuel Vehicle (AFV) Emissions Inspection Exemption

AFVs powered exclusively by electric, natural gas, and propane vehicles are exempt from state emissions control inspections. Plug-in hybrid electric vehicles that obtain a U.S. Environmental Protection Agency fuel economy rating of at least 50 miles per gallon during city driving are also exempt from these inspections. (Reference Revised Code of Washington 46.16A.060)

Alternative Fuel Vehicle Labeling Requirement

Every alternative fuel automobile, truck, motorcycle, motor home, or off-road vehicle must bear a reflective placard from the National Fire Protection Association indicating that the vehicle is powered by an alternative fuel. Alternative fuels include propane and natural gas. (Reference Revised Code of Washington 46.37.467)

Alternative Fuel Vehicle (AFV) Car Share Pilot Program

The Washington State Department of Transportation (WSDOT) will develop a pilot program to provide AFV use opportunities to underserved and low-income communities and to those without easy access to transportation corridors. (Reference Revised Code of Washington 47.04.355)

Alternative Fuel Vehicle (AFV) Retail Sales and Use Tax Exemption

The retail sales and state use tax of 6.5% does not apply to the sale or lease of new or used passenger vehicles, light-duty trucks, and medium-duty passenger AFVs. AFVs powered by natural gas, propane, hydrogen, and electricity are eligible. Vehicles must not have a selling price plus trade-in property value that exceeds $45,000 for new vehicles and $30,000 for used vehicles. The maximum eligible amount for used purchased or leased vehicles is $16,000. The maximum eligible amounts for new purchased or leased vehicles are as follows:

For more information, see the Renewable Energy/Green Incentives section of Washington Department of Revenue's Incentives Programs website.

(Reference Revised Code of Washington 82.12.9999)

Alternative Fuel Vehicle (AFV) Technical Assistance and Education Program

The Washington State University (WSU) Energy Program must establish and administer a technical assistance and education program on the use of AFVs for public agencies, including state and local governments. For more information, visit the WSU Energy Program Green Transportation Program website. (Reference Revised Code of Washington 28B.30.903)