Alternative Fuel Stations in Memphis, TN

Tax incentives and/or other rebates, credits, incentives or related initiaves for drivers of alternative fuel vehicles or for other uses of alternative fuel in Memphis, TN.

Low- and Medium-Speed Vehicle Access to Roadways

A low-speed vehicle is any four-wheeled electric vehicle, excluding golf carts, that achieves speeds of at least 20 miles per hour (mph) but not more than 25 mph. Low-speed vehicles may access roadways with speed limits of up to 35 mph. A medium-speed vehicle is any four-wheeled electric or gasoline vehicle that has a maximum speed of over 30 mph, but not more than 35 mph. Medium-speed vehicles may not operate on interstate highways. Low- and medium-speed vehicles must comply with the safety standards in Title 49 of the Code of Federal Regulations, section 571.500.

(Reference Tennessee Code 55-8-101 and 55-8-191)

Compressed Natural Gas (CNG) Permit

CNG dealers must apply for and obtain a permit from the Tennessee Department of Revenue (Department). The permit authorizes the dealer to collect and remit taxes on CNG delivered to motor vehicles by means of a dispenser with meter capability. The permit will remain valid as long as the dealer provides timely reports and remits taxes when due, or until surrendered or cancelled. All CNG meters and dispensers are subject to inspection and verification by the Tennessee Department of Agriculture’s Weights and Measures enforcement provisions.

A CNG vehicle user must apply for and obtain a CNG user’s permit from the Department unless the user purchases CNG from a dealer through a metered dispenser.

For more information, see the Department’s CNG Tax Return for Dealers fact sheet and the Motor Fuel Taxes website.

(Reference Tennessee Code 67-3-1119 and 67-3-1120)

Alternative Fuel Tax

Compressed natural gas (CNG) and liquefied gas used for operating motor vehicles on public highways are subject to excise tax of $0.21 and $0.22, respectively, imposed on a per gallon basis. For the purposes of this tax, the Tennessee Department of Revenue uses a CNG gallon equivalent factor of 5.66 pounds (lbs.) and a liquefied gas gallon equivalent factor of 6.06 lbs. Liquefied gas includes combustible gas that exists in the gaseous state at 60 degrees Fahrenheit and at a pressure of 14.7 lbs. per square inch, but does not include gasoline, diesel fuel, or CNG. Government agencies are exempt from this tax.

(Reference Tennessee Code 67-3-1101 to 67-3-1103 and 67-3-1113)

Electric Vehicle (EV) Fee

In addition to standard registration fees, EV owners must pay an annual fee of $100. Beginning January 1, 2024, annual EV registration fees increase according to the following schedule:

Years	Annual EV Fee
2024 to 2026	$200
2027	$274
2028 and later	$274, adjusted for annual inflation

Beginning January 1, 2024, in addition to standard registration fees, hybrid electric vehicle (HEV) and plug-in hybrid electric vehicle (PHEV) owners will be subject to the following annual fees:

Years	Annual EV Fee
2024 to 2028	$100
2028 and later	$100, adjusted for annual inflation

Low-speed and medium-speed vehicles are exempt from the fee.

(Reference Tennessee House Bill 321, 2023 and Tennessee Code 55-4-116)

Electric Vehicle (EV) Charging Station Rebate – Knoxville Utility Board (KUB)

KUB offers residential customers a rebate up to $400 for the purchase and installation of a Level 2 EV charging station. For more information, including the application, please visit the KUB Electric Vehicle website.

Electric Vehicle (EV) Infrastructure Support

Tennessee utilities joined the National Electric Highway Coalition (NEHC), committing to create a network of direct current fast charging (DCFC) stations connecting major highway systems from the Atlantic Coast to the Pacific of the United States. NEHC utility members agree to ensure efficient and effective fast charging deployment plans that enable long distance EV travel, avoiding duplication among coalition utilities, and complement existing corridor DCFC sites. For more information, including a list of participating utilities and states, see the NEHC website.