Montana Policy Data

Summary

	Montana offers an AFV conversion tax credit of up to 50% of the equipment and labor costs for vehicle conversion, with limits of $500 or $1000 based on vehicle weight. The Montana Legislature passed a bill promoting the state-wide use of alternative fuels in both public and private endeavors, and Montana set a special tax rate for Compressed Natural Gas and an energy equivalency formula for determining a gallon-equivalent for CNG. Finally, Montana has setup requirements and licensing for CNG fuel dispensers. Click here to download the state profile sheet.

Vehicles

Current Estimated Fleet-based NGVs in Montana

0

Vehicles by Fuel Type

Stations

Current Public NGV Fueling Stations - 0

Private NGV Fueling Stations - 1

NGV Station Listing

Fuel Taxes

Montana Motor Fuel Taxation Website

CNG - 7.0 ¢ / Gallon Equivalent - Reference

LNG - 27.75 ¢ / Gallon Reference (15-70-201.11)

Gasoline - 27. 0 ¢ / Gallon - Reference

Diesel - 27.75 ¢ / Gallon - Reference

**LNG is not specifically listed, however the law details out fuel types of specifications and LNG fits within the parameters of the spec.

IFTA - IFTA taxes are applied to vehicles of 3+ axles, or weighing more than 26,000 pounds. IFTA tax tables can be found here.

Incentives

Alternative Fuel Vehicle (AFV) Conversion Tax Credit

Businesses or 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 compressed and liquefied natural gas, liquefied petroleum gas (propane), hydrogen, electricity, and fuel containing at least 85% ethanol or methanol. 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 during the year that the business or entity converts the vehicle. An alternative fuel seller may not receive a credit for converting its own vehicles to operate on the alternative fuel they sell. (Reference Montana Code Annotated 15-30-2320)

Laws & Regs

Legislative Session Dates:	Bi-Annual Legislature - Jan 2nd to Late April, 2017
Legislature Website:	http://leg.mt.gov/css/

Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) Tax

Retail sales for CNG and LPG used to operate vehicles are subject to a modified tax based on energy content. (Reference Montana Code Annotated 15-70-711)

Compressed Natural Gas (CNG) or Liquefied Petroleum Gas (LPG) License

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

Proposed Bills

2015 Session - Proposed Legislation

SB-155

Establishes fees for petroleum and natural gas dispensing meters, and inspection requirements. Fee is $27 and inspection required every 2 years for dispensers capable of providing 20 gallons or less per minute. Reference - SB155 Bill History, Reference - SB155 Bill Text

SB-171

Would repeal significant number of tax credits including alternative fuel vehicle credits. Reference - SB171 Bill History, Reference - SB171 Bill Text Status: To Governor 4/27/15; vetoed by the Governor on 5/4/15

2014 Session - Proposed Legislation

Montana has no 2014 proposed NGV legislation as of this update

2013 Session - Proposed Legislation

HB-532

Very long bill. Repeals tax credit for alternative fuel vehicle conversions for consumers and other non-corporate entities, also repeals the small business conversion credits. Reference - HB532 Bill History, Reference - HB532 Bill Text 2013-04-24 - (H) Died in Standing Committee (H) Taxation

HB-581

Very long bill. Repeals alternative fuel conversion tax credits. Reference - HB581 Bill History, Reference - HB581 Bill Text Action: 2013-04-24 - (S) Died in Standing Committee (S) Taxation

SB-282

Very long bill. Repeals tax credit for alternative fuel vehicles found in sections 15-30-2320 and 15-31-137 of MT Code. Reference - SB282 Bill History, Reference - SB282 Bill Text Action: 2013-05-06 - (S) Died in Process

This state was last examined and updated in May, 2016.

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