Alternative fuel vehicles

From the 2024 DOR Tax Exemption Study

82.08.9999; 82.12.9999 - Alternative fuel vehicles Description A sales and use taxes exemption is provided for sales of new and used passenger cars, light duty trucks, and medium duty passenger vehicles which meet one of the following: - Are exclusively powered by a clean alternative fuel. - Use at least one method of propulsion that is capable of being recharged from an external source of electricity and are capable of traveling at least 30 miles using only battery power. "Clean alternative fuel" includes natural gas, propane, hydrogen, and electricity. New vehicles with a selling price less than $45,000, which includes the trade-in value, qualify for this exemption. Through July 31, 2021, the exemption is a maximum of $25,000 of a vehicle’s selling price or the total lease payments made plus the selling price of the leased vehicle if the original lessee purchases the leased vehicle. Beginning August 1, 2021, the exemption is a maximum of $20,000 and decreases to $15,000 on August 1, 2023. The qualification period end date is August 1, 2025. Used vehicles with a selling price less than $30,000, which includes the trade-in value, qualify for this exemption. The first $16,000 of the