Rhode Island Incentives and Laws

Last Updated September 2006

State Incentives

Alternative Fuel Vehicle (AFV) Loans

The Rhode Island State Energy Office offers loans of up to five years, with low administrative fees, to state agencies and municipal governments to cover the incremental cost of purchasing original equipment manufactured AFVs.

Point of Contact

Tim Howe
Principal Planner
Rhode Island State Energy Office
Phone (401) 222-3370 x104
Fax (401) 222-1260
timh@gw.doa.state.ri.us
http://www.riseo.state.ri.us/programs/revloan.html
 

Electric Vehicle (EV) Tax Credit

A taxpayer entitled to the federal qualified EV tax credit is also entitled to a state tax credit equal to 25% of the federal qualified EV tax credit. (Reference Rhode Island Code 44-30-2.6)

Alternative Fuel Vehicle (AFV) and Refueling Infrastructure Tax Credit

The Alternative Fueled Vehicle and Filling Station Tax Credit entitles taxpayers to a tax credit equal to 50% of the capital, labor, and equipment costs incurred for the construction of, or improvement to, any alternative fuel refueling or recharging station providing domestically produced alternative fuel. For the purpose of this tax credit, the definition of alternative fuel includes ethanol fuel and biodiesel produced from feedstocks including virgin vegetable oil, yellow grease, waste vegetable oil, and animal fats and tallows. Taxpayers are also entitled to a tax credit equal to 50% of the incremental cost incurred for the purchase of an AFV or the capital, labor, and equipment cost of converting a motor vehicle to operate on an alternative fuel. Taxpayers may carry forward any unused credits or any unused portion of the credit for up to five years. This incentive is effective until January 1, 2008. (Reference Senate Bill 2498Aaa, 2006, and Rhode Island Code 44-39.2-2)

Alternative Fuel Tax Deduction

Corporations that sell alternative fuels are allowed a deduction from the gross earnings from sales reported in the corporations' tax returns. The deduction is equal to the total of gross earnings from the sale of alternative fuels when used as separately metered motor fuels that power motor vehicles. This incentive is valid from January 1, 1998, to December 31, 2007. (Reference Rhode Island Code 44-13-5)

Biodiesel Tax Exemption

Organically produced biodiesel fuels are exempt from motor fuel tax. (Reference Rhode Island Code 31-36)

Alternative Fuel Vehicle (AFV) Tax Exemption – Warren

The town of Warren may allow excise tax exemptions of up to $100 for qualified AFVs registered in Warren. For the vehicles to qualify, they must be primarily fueled by an electric motor drawing current from rechargeable batteries or fuel cells, and gas produced from biomass, where biomass is defined as any organic material other than oil, natural gas, and coal. (Reference House Bill 8064, 2006, and Rhode Island Code 44-34-14)

State Laws and Regulations

Low Emission Vehicle Requirements

The Rhode Island Department of Environmental Management has adopted California low emission vehicle regulations applicable to passenger vehicles, light-duty trucks, and medium-duty vehicles. All 2008 Model Year and subsequent Model Year passenger cars and light-duty trucks, and 2009 Model Year and subsequent model year medium-duty vehicles offered for sale or lease, imported, delivered, or registered in the state must meet California exhaust emissions standards for greenhouse gas emissions under Title 13 of the California Code of Regulations. (Reference Rhode Island Department of Environmental Management Regulation No. 37)

Point of Contact

Office of Air Resources
Rhode Island Department of Environmental Management
Phone (401) 222-2808
Fax (401) 222-2017
http://www.dem.ri.gov/programs/benviron/air/index.htm
 

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Acquisition Requirements

In order to reduce fuel consumption, improve fuel efficiency to a minimum of federal Corporate Average Fuel Economy standards, and reduce pollution emissions and purchase vehicles that provide the best value on a lifecycle cost basis, the state is required to take actions including the following: 1) At least 75% of state motor vehicle acquisitions must be AFVs, and the remaining 25% must be HEVs to the greatest extent possible; 2) All new light-duty trucks in the state fleet must achieve a minimum city fuel economy of 19 miles per gallon (mpg) and achieve a minimum certification of a low emission vehicle, and all new passenger vehicles in the state fleet must achieve a minimum city fuel economy of 23 mpg. The state is also required to prepare an annual report to the Governor on the state’s compliance with these goals. (Reference Executive Order 05-13, 2005)

Idle Reduction Requirement

Unnecessary operation of the engine of a motor vehicle while stopped, in excess of five consecutive minutes in any 60 minute period, is not permitted. Unnecessary idling does not include periods and circumstances exempted by regulations adopted by the Rhode Island Department of Environmental Management, such as when it is necessary to operate heating and cooling equipment to ensure the health or safety of drivers and passengers. These requirements do not apply to the following: 1) emergency response, public safety, or military vehicles; 2) armored vehicles being loaded or unloaded; 3) non-road vehicles; 4) vehicles making deliveries of fuel or energy products. Violators of these regulations will be fined up to $100 for the first offense and up to $500 for each succeeding offense. (Reference House Bill7757Aaa, 2006, and Rhode Island Code23-23 and 31-16.1)

Low-Speed Vehicle Access to Roadways

Low-speed vehicles may be operated upon the roadways of Prudence Island. A low-speed vehicle is defined as a motor vehicle that is a self-propelled, electric or gas powered, designed to carry four or fewer persons, and conforms to the maximum safety equipment requirements as adopted in the Federal Motor Vehicle Safety Standard Number 500 (Code of Federal Regulations Part 49, Section 571.500). A low-speed vehicle may not be operated on a road with a posted speed limit greater than 25 miles per hour and may only be operated during the hours of 6:00 a.m. through 6:00 p.m. (Reference Rhode Island Code 31-19.4-1)

Utilities/Private Incentives

There are currently no known utility or private incentives offered in Rhode Island

Rhode Island Points of Contact: