U.S. Department of Energy - Energy Efficiency and Renewable Energy
Alternative Fuels & Advanced Vehicles Data Center
Montana Incentives and Laws
Alternative Fuel Vehicle (AFV) Conversion Tax Credit
An income tax credit is available to businesses or individuals for up to 50% of the equipment and labor costs for converting vehicles to operate on alternative fuels. The maximum credit is $500 for the conversion of vehicles of 10,000 pounds (lbs.) or less Gross Vehicle Weight Rating (GVWR) and $1,000 for vehicles over 10,000 lbs. GVWR. The credit must be applied in the year the conversion is made, and the seller of an alternative fuel may not receive a credit for converting their own vehicles to operate on the alternative fuel they sell. (Reference Montana Code Annotated 15-30-164)