Arkansas Laws and Incentives

Listed below are the summaries of all current Arkansas laws, incentives, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

State Incentives

Arkansas' National Electric Vehicle Infrastructure (NEVI) Planning

The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Arkansas Department of Transportation (ARDOT) to submit an EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office by August 1, 2022, describing how the state intends to distribute NEVI funds. Plans must be established according to NEVI guidance.

For more information about Arkansas’ NEVI planning process, see the ARDOT Electric Vehicle Infrastructure Deployment Plan website.

Idle Reduction Technology Loans

The Arkansas Department of Environmental Quality (ADEQ) provides small business loans to institute pollution control and prevention measures. Idle reduction technologies for heavy-duty trucking applications are eligible. The maximum loan amount is $45,000, with a $65,000 lifetime maximum for one business, with loan terms up to 10 years. An eligible business must employ 100 individuals or less and demonstrate proof of profitability and the ability to repay the loan. For more information, including a loan application, see the ADEQ Environmental Assistance Low-Interest Loans for Small Businesses website.

Electric Vehicle (EV) Charging Station Corridor Grants

The Arkansas Department of Environmental Quality’s (ADEQ) Direct Current Fast Charge (DCFC) Financial Assistance program provides grants to public and private entities to install 150-kilowatt DCFC stations along major interstates and transportation corridors. Grants are available for 75% of the total project costs, up to $350,000 per site. To be eligible, sites must be within 50 miles of an exit from a designated Alternative Fuels Corridor, publicly accessible 24 hours daily, and well-lit. The program is funded by Arkansas’s portion of the Volkswagen Environmental Mitigation Trust. For more information, see ADEQ’s DCFC Financial Assistance Program website. (Reference Arkansas Code 15-10-101 and 19-5-1273)

Electric Vehicle (EV) Charging Station Grants

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

Access Applicant Type Maximum Rebate (One Port) Maximum Rebate (Two or More Ports)
Public Government $6,850 $9,300
Public Non-Government $5,325 $7,225
Private Workplace $1,875 $3,375
Private Multi-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 ADEQ’s Level 2 Rebate Program website.

(Reference Arkansas Code 15-10-101 and 19-5-1273)

Utility/Private Incentives

Electric Vehicle (EV) Infrastructure Support

Arkansas 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.

Laws and Regulations

Hybrid Electric Vehicle (HEV) and Electric Vehicle (EV) Fee

HEV and EV owners must pay an annual fee in addition to other registration fees. The fee is $200 for all-electric vehicles, $100 for plug-in hybrid electric vehicles, and $50 for HEVs. Fees contribute to the State Highway and Transportation Department Fund. Vehicles that are registered with a military service and veterans special license plate with permanent decal pursuant to Arkansas Code 27-24-201 are exempt from the annual fee. (Reference Arkansas Code 19-6-301(265), 27-14-614, and 27-24-201)

Public Utility Definition

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

Autonomous Vehicle (AV) Pilot Program

AVs may operate in Arkansas under a pilot program established by the State Highway Commission if an exemption is granted by the Arkansas Department of Transportation. To participate in the pilot program, an AV must have proof of insurance, be capable of complying with all traffic laws, including the ability to safely operate at a railroad crossing, and have safety mechanisms in place in the event of a failure. Under the pilot program, a person may operate an AV that is not equipped with seatbelts, a steering wheel, or a rearview mirror, and may operate a maximum of three AVs simultaneously. (Reference Arkansas Code 27-51-2002)

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)

Liquefied Natural Gas (LNG) and Propane Tax and User Permit

LNG and propane are subject to a per mile excise tax of $0.075 per gallon. In lieu of the excise tax, LNG and propane users may pay an annual flat fee for a special fuel user’s permit. The fee is based on the vehicle’s gross vehicle weight rating. For each vehicle fueled by LNG or propane, the vehicle owner must apply for and obtain a liquefied gas special fuel user’s permit from the Arkansas Department of Finance and Administration (DFA). For more information, including fees and applications, see the DFA website. (Reference Arkansas Code 26-56-102, 26-56-301 and 26-56-304)

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)

Natural Gas Metering

Individuals who use natural gas for residential or other tax-free purposes may not use natural gas in motor vehicles unless the natural gas is obtained through a separate meter which the alternative fuels supplier installed for such purposes. (Reference Arkansas Code 26-62-203)

Alternative Fuel Definition and Specifications

An alternative fuel is defined as biofuel, ethanol, methanol, hydrogen, coal-derived liquid fuels, electricity, natural gas, propane gas, or a synthetic transportation fuel. Biofuel is defined as a renewable, biodegradable, combustible liquid or gaseous fuel derived from biomass or other renewable resources that can be used as transportation fuel, combustion fuel, or refinery feedstock and that meets ASTM standards and federal quality requirements for each category or grade of fuel. Biofuel includes biodiesel or renewable diesel, renewable gasoline, renewable jet fuel and naphtha, biocrude, biogas, and other renewable, biodegradable, mono alkyl ester combustible fuel derived from biomass. Ethanol is ethyl alcohol derived from biomass that meets ASTM Standard D4806-04a and federal quality requirements. Synthetic transportation fuel is a liquid fuel produced from biomass by a gasification process or other refining process that meets any applicable state or federal environmental requirement. (Reference Arkansas Code 15-13-102 and 26-62-102)

Biodiesel Use Requirement

All diesel-powered motor vehicles, light trucks, and equipment owned or leased by a state agency must operate using diesel fuel that contains a minimum of 2% biodiesel (B2). For the purpose of this requirement, biodiesel includes renewable diesel and other renewable, biodegradable mono alkyl ester combustible fuel derived from biomass. The Department of Finance and Administration may grant waivers to the B2 requirement for state agency vehicles if the fuel is not available in certain geographic areas, the fuel price is at least $0.15 more per gallon then the petroleum equivalent, or compliance with the standard is not otherwise economically feasible. (Reference Arkansas Code 15-13-101, 15-13-102, and 15-13-202 to 15-13-203)

Low-Speed Vehicle Definition

A low-speed vehicle is defined as a four wheeled vehicle that has a maximum speed greater than 20 miles per hour (mph) but not more than 25 mph and has a gross vehicle weight rating less than 3,000 pounds. (Reference Arkansas Code 23-112-103(18))