Alternative Fuel Tax Exemption

Idaho offers distributors of alternative fuels an exemption of up to 10% off the state excise tax on fuels. The 10% exemption is equivalent to a 2.5-cents per gallon exemption; the state tax on fuels is 25-cents per gallon. The exemption applies to gasohol and biodiesel. Gasohol is defined as gasoline containing a mixture of no more than 10% blend anhydrous ethanol. Biodiesel is defined as any fuel or mixture of fuels that is derived in whole or part from agricultural products or animal fats for the waste of such products, and is suitable for use as fuel in diesel engines.