Green Driver State Incentives in Idaho

Idaho's green drivers can save time and money with a few incentives for eco-friendly driving. Keep reading for more on money-saving state and federal incentives designed to encourage drivers to opt for a hybrid, electric car (EV), alternative fuel vehicle (AFV), and other fuel-efficient automobiles.

Idaho Registration Emissions Testing Exemptions for Fuel Efficient Vehicles

For the purposes of first-time Idaho vehicle registration and registration renewal, the ID Division of Motor Vehicles exempts the following fuel-efficient vehicles from emissions testing:

  • Electric vehicles.
  • Hybrids.
  • Newer model vehicles (five years from model year and newer).

For a full list of vehicles exempt from Idaho's emissions testing requirement, consult our ID Smog & Emissions Checks page or the Idaho Vehicle Inspection Program's FAQs page. Also, Idaho Statutes (Title 39-116B) fully details this exemption from the vehicle inspection and maintenance program.

If your vehicle requires an emissions test, scroll down to our locator widget at the bottom of the page to find the nearest testing facility.

ID Auto Insurance Discounts for Eco-Friendly Driving and Green Vehicles

As an environmentally conscious driver, you can also save money on auto insurance rates. How? Certain Idaho auto insurance providers offer insurance discounts for having green driving habits and/or driving a fuel-efficient vehicle. Perks include:

  • Hybrid auto discounts.
  • Alternative fuel vehicle (AFV) discounts.
  • Economy car discounts.
  • Low-mileage discounts.
  • Pay as you drive discounts.

Inquire with your car insurance company, being aware these discounts vary by provider and circumstances. For example, you might receive a 10% discount on car insurance for owning or leasing a hybrid car, while maintaining low mileage can earn you up to a 30% auto insurance discount.

If your current Idaho auto insurance carrier doesn't reward eco-friendly driving, find one that does. Compare auto insurance rates online and save some green for going green.

Idaho Tax Incentives for Green Drivers

Navigating your way through state and federal tax incentives can be tricky. Therefore consider consulting your preferred tax professional, the Idaho State Tax Commission, or your local IRS Taxpayer Assistance Center if any of the following tax breaks apply to you.

ID Special Fuels Excise Tax Exemption and Refund

You might be exempt from paying state excise taxes on what Idaho defines as special fuels. This includes:

  • Compressed natural gas (CNG).
  • Liquified natural gas (LNG).
  • Liquified petroleum gas (or propane).
  • Hydrogen.
  • Diesel engine fuels.

Also, if you drive a state- or federal-owned vehicle, you can seek a refund—as long as the fuel was purchased from a special fuel vendor.

For more information, reference Idaho Statutes 63-2401, 63-2402, and 63-2423 or contact the State Tax Commission at (800) 972-7660.

Federal Tax Credits for Fuel-Efficient Vehicle Owners

In addition to state incentives, there are a number of federal tax credits for fuel-efficient vehicle owners. You might also qualify for tax credits offered by the IRS if you own a:

  • Hybrid.
  • Plug-in hybrid.
  • Electric car.
  • Diesel vehicle.
  • Alternative fuel vehicle.

To find out if you're eligible to save even more money, check out the government's Tax Incentive Information Center.

Find a Nearby Idaho Emissions Testing Station

Remember, there are several kinds of AFVs, but unless it's an electric or a hybrid you must bring your vehicle in for emission testing. Locate the nearest Idaho emissions testing station using the locator below.

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