Financial Incentives

Of all the air quality strategies aimed at reducing diesel exhaust, installing advanced exhaust controls, or retrofitting existing diesel vehicles and equipment is the most cost effective strategy (cost per ton of pollutant reduced) and yields the greatest environmental benefit. However, it involves a significant investment. The State offers tax credits to help with the cost of retrofits and repowers (replacing existing engine with cleaner engine). Grant funding is periodically available, but grants are competitive whereas tax credits are not.

More information about financial incentives

Tax Credits

Clean diesel tax credits are available for:

Up to 50% of the certified cost of a qualifying Oregon diesel engine retrofit, and
Up to 25% of the certified cost of a qualifying Oregon nonroad diesel engine repower.

For more information, visit Clean Diesel Tax Credit Program

Grants

Periodically, state and federal funds are available to help with the cost of retrofitting and repowering vehicles and equipment. Previous grants have been awarded to a number of clean diesel projects including the following:

Retrofit Projects

Construction equipment
Garbage trucks
Public transit buses
School buses
Package delivery vehicles

Repower Projects

Towboats (that were decades-old)
Construction equipment
Ferry

Reduced Idling Projects

Locomotives (installed auxiliary power units)
Installed electrified parking spaces at 7 Oregon truck stops (resulted in significant fuel savings and reduced emissions while still providing cab comfort)

DEQ’s Diesel Web Page
Look for the envelope on the far left hand side to sign up for information about state funding and clean diesel topics.

EPA’s National Clean Diesel Funding
Scroll to the bottom of the page to sign up for information about federal funding.