Green Driver State Incentives in Oregon
- OR Emissions Test Exemptions for Green Vehicles
- Auto Insurance Discounts for Eco-Friendly Driving and Green Vehicles
- State and Federal Tax Incentives
- Oregon Alternative Fuel Vehicle Loans
- OR Idle Reduction System Weight Exemption
- Keep Current with the Latest Oregon Green Driver Incentives
- Find a Nearby Oregon Emissions Testing Station
To maintain its top ranking among the greenest states in the U.S., and to encourage residents to go green, Oregon offers numerous eco-friendly driver incentives. These include electric car (EV) emissions test exemptions, state and federal tax incentives, alternative fuel vehicle (AFV) loans, auto insurance discounts, and more. Keep reading for specifics on how to take advantage of these Oregon green driver incentives.
OR Emissions Test Exemptions for Green Vehicles
Oregon exempts low-speed and all-electric vehicles from emissions testing as a requirement of OR vehicle registration. This excludes most hybrids* and any other alternative fuel vehicles capable of running on gasoline or diesel fuel. For example, if your vehicle runs on propane, and it is registered within OR's emissions testing boundary (see subsection below), it must undergo an emissions test.
*Hybrids registered in the Medford area that are over 20 years old and hybrids registered in the Portland area with a model-year older than 1975 are exempt from emissions testing.
If your vehicle is emissions test exempt, you might need to submit a completed Declaration of Exemption form (Form 735-1400) to the Oregon Driver and Motor Vehicle Services Division (DMV) during registration renewal. Download the form online or request one by calling the DEQ at (971) 673-1630 or (877) 476-0583 (toll free).
Emissions Testing Boundaries
Keep in mind that emissions test requirements only apply to vehicles registered in and around the Medford and Portland Metro areas. Determine if your vehicle is registered within a Department of Environmental Quality emissions testing area using the Vehicle Inspection Program (VIP) Boundary-Address Matching tool.
For more on obtaining a Certificate of Compliance, refer to the Oregon VIP page and our vehicle inspections page. If your vehicle requires an emissions test, find a nearby inspection center using our locator widget at the bottom of this page.
Auto Insurance Discounts for Eco-Friendly Driving and Green Vehicles
Some Oregon auto insurance providers offer insurance discounts for having green driving habits and/or driving a fuel-efficient vehicle. Consult your car insurance company about potential green vehicle discounts such as:
- Hybrid auto discounts.
- Alternative fuel vehicle (AFV) discounts.
- Economy car discounts.
- Low-mileage discounts.
- Pay as you drive discounts.
. You might receive a 10% discount on car insurance for owning or leasing a hybrid car. Discounts vary by provider and circumstances.
If your current OR 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.
State and Federal Tax Incentives
State and federal tax incentives abound for Oregon's eco-friendly drivers and businesses. Read on for full details on tax exemptions, federal tax credits, and more.
If you have tax incentive-related questions, consider contacting a tax professional, the OR Department of Revenue, and/or your local IRS Taxpayer Assistance Center when it comes time to file.
Biodiesel Fuel Excise Tax Exemption
Typically, Oregon imposes an excise tax—at a rate of $.30 per gallon—on the use of fuel in a motor vehicle. However, it exempts diesel fuel blended with at least 20% biodiesel derived from used cooking oil, except when this biodiesel blend is either:
- Used in motor vehicles with a gross vehicle weight rating (GVWR) of 26,001 lbs. or more.
- Not sold in retail operations.
- Sold in operations that involve fleet fueling or bulk sales.
For specifics, refer to Oregon Revised Statutes 319.530.
Residential EV Charging and CNG Fueling Station Tax Credits
Oregon offers tax credits for residential alternative fuel vehicle infrastructure projects such as:
- Electric vehicle charging stations.
- Compressed natural gas (CNG) fueling stations.
The AFV fueling or charging infrastructure tax incentive equals 50% of the eligible cost of related equipment, with a $750 maximum. Consult the DOE's AFV Fueling and Charging page and application form for full details.
Business Energy Incentives and Tax Credits
Oregon business owners might be eligible for a maximum project tax credit of up to 35% of eligible costs associated with projects involving:
- Alternative fuel vehicle infrastructures—Projects such as electric vehicle charging, blender pump, and compressed natural gas systems.
- Transit services—Projects involving regular public transportation (excluding school bus, charter, or intercity passenger rail transportation) that reduce energy consumption.
The Oregon Department of Energy publishes the latest info on available tax dollars, application deadlines, requirements, and more. Consult the DOE’s Business Energy Incentives page for available incentives. It also gives the option to sign up for e-mail updates on Oregon energy incentive programs.
Federal Tax Incentives for Green Vehicles
Oregon drivers might be eligible for a tax break by purchasing a fuel-efficient vehicle. The government offers federal tax credits to those who buy new eco-friendly cars such as:
- Electric cars (EV).
- Plug-in hybrids (PHEV).
- Alternative fuel vehicles (AFV).
To find out if you're eligible to save even more money, check out fueleconomy.gov.
Oregon Alternative Fuel Vehicle Loans
Oregon's Alternative Fuel Vehicle Revolving Loan Fund helps support the expansion of alternative fuel vehicle fleets with a goal of reducing carbon emissions. This continual, revolving fund is open to local, state, and special governments, and Oregon's nine federally recognized tribes. This includes school districts.
Borrowers can use loan funds to:
- Buy new alternative fuel vehicles.
- Convert existing gasoline- and diesel-powered vehicles to run on alternative fuels.
- Offset AFV purchase and/or conversion costs incurred no more than 60 days prior to the Department of Energy receiving your loan application.
Keep in mind you must also register and use these vehicles in Oregon.
The Oregon Department of Energy administers these revolving funds through its Small-scale Energy Loan Program (SELP). Because the Department uses loan repayments to help fund the projects of new borrowers, it maintains a revolving pool of resources.
OR Idle Reduction System Weight Exemption
Vehicles equipped with idle reduction systems may exceed Oregon's maximum weight limits by up to 40 lbs. The weight exemption compensates for the extra weight that equipment designed to reduce the amount of fuel and emissions caused by engine idling adds to a vehicle. Refer to Oregon Revised Statutes 818.030 for more.
Keep Current with the Latest Oregon Green Driver Incentives
These money-saving incentives and related green vehicle laws are subject to change. Keep up with the latest by also periodically consulting your local Oregon Driver and Motor Vehicle Services Division (DMV) branch and the Oregon Department of Energy.
Find a Nearby Oregon Emissions Testing Station
Locate the closest OR smog and emissions testing station with the widget below:
Declaration of Exemption - 735-1400
Use this form to claim exemption from Oregon's required emissions inspection.