Electricity Laws and Incentives in Arkansas

The list below contains summaries of all Arkansas laws and incentives related to electricity.

Laws and Regulations

Alternative Fuel Vehicle Conversion Notification

Any individual or company who converts a vehicle to operate on an alternative fuel must report the conversion to the Arkansas Department of Finance and Administration (DFA) within 10 days of the conversion. An owner or operator who fails to report such a conversion may be subject to a penalty. For more information, including reporting forms, see the DFA website. (Reference Arkansas Code 26-56-315 and 26-62-214)

Alternative Fuels Tax and Reporting

Excise taxes on alternative fuels are imposed on a gasoline gallon equivalent (GGE) basis. The tax rate for each alternative fuel type is based on the number of motor vehicles licensed in the state that use the specific fuel, not including vehicles the federal government owns or leases. The Arkansas Department of Finance and Administration (DFA) and the Arkansas State Highways and Transportation Department must prepare an annual report with the number of alternative fuel vehicles licensed in the state and the tax revenue generated. The DFA must establish the tax rate annually by April 1. Licensed alternative fuel suppliers must pay alternative fuel taxes for product dispensed, sold to a dealer or user, or used in a motor vehicle owned or operated by the alternative fuel supplier. Alternative fuel suppliers must prepare a monthly report on the number of GGEs of alternative fuels sold and possess a sufficient number of credits (also known as sales tickets) to cover the alternative fuel sales tax. (Reference Arkansas Code 19-6-301, 26-56-502, 26-56-601, and 26-62-201 through 26-62-209)

Hybrid Electric Vehicle (HEV) and Plug-In Electric Vehicle (PEV) Fee

HEV and PEV owners must pay an annual fee in addition to other registration fees. The fee is $200 for all-electric vehicles and $100 for plug-in hybrid electric vehicles. Beginning January 1, 2022, HEV owners must pay an annual fee of $50 for HEVs. Fees contribute to the State Highway and Transportation Department Fund. Vehicles that are registered with a special license plate or special license plate with permanent decal pursuant to Arkansas Code 27-24-201 are exempt from the annual fee. (Reference Senate Bill 225, 2021, Senate Bill 246, 2021, and Arkansas Code 27-14-614 and 27-24-201)

Public Utility Definition

A person or corporation that supplies electricity to the public exclusively to charge plug-in electric vehicles is not defined as a public utility. (Reference Arkansas Code 23-1-101(9))

State Incentives

Electric Vehicle Supply Equipment (EVSE) Grants

The Arkansas Department of Environmental Quality's (ADEQ) Level 2 EVSE Rebate program offers rebates to government, private, and non-profit entities for the construction and installation costs of Level 2 EVSE. Funding is available in the following amounts:

AccessApplicant TypeMaximum Rebate (One EVSE Port)Maximum Rebate (Two or More EVSE Ports)
PublicGovernment$6,850$9,300
PublicNon-Government$5,325$7,225
PrivateWorkplace$1,875$3,375
PrivateMulti-Unit Dwelling$1,875$3,375

Rebates are awarded on a first-come, first served basis. The program is funded by Arkansas's portion of the Volkswagen Environmental Mitigation Trust. For more information, including eligibility and how to apply, see the ADEQ's Volkswagen Settlement website. (Reference Arkansas Code 15-10-101 and 19-5-1273)

More Laws and Incentives

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