Adds to existing law to provide a partial sales and use tax exemption for qualified vehicles, to provide a definition of “qualified vehicle” and to provide limitations.

This legislation serves as a pilot project that supports the adoption of alternative fuel vehicles in the State of Idaho. Expanding the adoption of Natural Gas, propane or electrically propelled and other alternative fuel vehicles allows Idahoans to consume Idaho-produced fuels, helping to reduce Idaho's current reliance on imported transportation fuels. This legislation may also encourage automobile manufacturers to deliver more vehicles to Idaho to be sold by Idaho dealers, in turn spurring the Idaho economy. This legislation also seeks to mitigate the issues surrounding non-attainment for air quality standards throughout Idaho. Alternatively fueled vehicles produce less particulates and nitrogen oxides that are a leading cause of Idaho's air quality challenges. This proposed legislation accomplishes all of this by adding a new section of code that allows purchasers of new vehicles, propelled by alternative fuels (compressed natural gas, liquid natural gas, propane or plug in electric) to pay 50% less sales tax, if the vehicle is originally registered in Idaho.