International Fuel Tax Agreement (IFTA) Zero-emission vehicles (Electric/Hydrogen) Frequently Asked Questions (FAQs)
Open All Close AllWhat is a zero-emission vehicle?
A zero-emission vehicle, or ZEV, is a vehicle that does not emit exhaust gas or other pollutants from the onboard source of power.
What types of vehicles are considered zero-emission vehicles?
There are two types of zero-emission vehicles. The first are battery electric vehicles, which run on batteries that are recharged with electricity. The second are hydrogen fuel cell electric vehicles, which run on electricity from a fuel cell using compressed hydrogen.
Do I have to register for an International Fuel Tax Agreement (IFTA) license, if all my qualified motor vehicles are zero-emission vehicles?
IFTA, Inc. has announced the addition of electricity and hydrogen as fuel types to the IFTA tax rates matrix. Therefore, if you have qualified motor vehicles that are propelled using electricity and/or hydrogen, your vehicles should be registered for an IFTA license.
I already have an IFTA license, and I just added two new motor vehicles. One uses electricity and the other one uses hydrogen. Both vehicles are qualified motor vehicles based on the definition of qualified motor vehicle under the IFTA, Articles of Agreement, Section R245. Do I need to include the two vehicles to my IFTA fleet and purchase decals?
Yes, you should be including both vehicles to your IFTA fleet and purchase decals from your base jurisdiction.
Do I have to report miles driven by my electric and/or hydrogen motor vehicles on my IFTA quarterly tax return?
Yes, you have to report all miles driven on your IFTA quarterly tax return.
How do I report my electric kilowatt hours (KWh) and hydrogen fuel on my IFTA quarterly tax return?
Although many jurisdictions don’t have a tax rate established for these fuel types, carriers who utilize electricity or hydrogen in the power unit(s) of their vehicle(s) must report the purchases of these fuels on their IFTA returns using gallon equivalents.
What is the California IFTA tax rate for electricity and hydrogen fuel use?
Currently, there is not an established California IFTA tax rate for either electricity or hydrogen fuel types.
Why am I reporting the miles for my electric and hydrogen vehicles on my IFTA quarterly tax return if there is no IFTA tax rate for these fuel types?
You are required to report all IFTA decaled vehicles, including your electric and hydrogen vehicles on your IFTA quarterly tax return.