Expired, Repealed, and Archived Arkansas Incentives and Laws

The following is a list of expired, repealed, and archived incentives, laws, regulations, funding opportunities, or other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality.

Alternative Fuel Vehicle and Infrastructure Rebate Program

Archived: 02/01/2019

The Office of Energy, a division of the Arkansas Department of Environmental Quality, administers the Arkansas Alternative Fuel Vehicle Rebate Program (Program), funded by the Alternative Motor Fuel Development Fund. The Program provides 50% of the incremental cost, up to $4,500, to purchase a qualified hydrogen fuel cell, natural gas, or propane vehicle, 50% of the conversion cost, up to $2,500, for converting a hydrogen fuel cell, natural gas, or propane vehicle, and 50% of the incremental cost, up to $2,500, to purchase a qualified plug-in electric vehicle.

Rebates are available for natural gas and propane fueling stations in the amount of 75% of qualifying costs, up to $400,000, and up to 50% of qualifying costs for private and public electric vehicle supply equipment, up to $900 and $5,000 respectively. Compressed natural gas (CNG) must be delivered to a vehicle at 3,000 pounds (lbs.) per square inch and metered on a gasoline gallon equivalent (GGE); liquefied natural gas (LNG) must be metered on a diesel gallon equivalent (DGE). One GGE of CNG is equal to 5.66 lbs. and one DGE of LNG is equal to 6.22 lbs.

The Office of Energy reviews and processes vehicle rebate applications on a first-come, first-served basis. The Program is currently closed and no funding is available (verified April 2018)

(Reference House Bill 1735, 2017, and Arkansas Code 15-10-901 to 15-10-904 and 19-5-1249)

Compressed Natural Gas School Buses Grant and Loan Pilot Program

Archived: 06/01/2016

A pilot program will provide grants to four public school districts to purchase 10 compressed natural gas (CNG) school buses each during fiscal years 2014 and 2015. Each congressional district in the state may have one public school district participating in the program, and any school district in the state may apply to participate. In addition to the grants, each school district participating in the pilot program may borrow up to $1.5 million through the Arkansas Revolving Loan Fund for the purchase of additional CNG school buses. To participate in the program, each school district must either have access to a CNG fueling station or agree to construct a new public-access fueling station. (Reference Arkansas Code 6-19-128 and 6-20-803)

Personal Use Biofuel Reporting

Archived: 06/01/2016

Taxpayers producing and using biodiesel and ethanol for personal use must report the total gallons of fuel produced by year and the portion of fuel used on-road and off-road to the Arkansas Department of Finance and Administration (DFA). Taxpayers must then submit a tax payment for the portion of biodiesel and ethanol used for on-road purposes. For more information, including instructions and forms, see the DFA website. (Reference Arkansas Code 15-4-2802)

Natural Gas Vehicle (NGV) Production Support and Procurement

Archived: 04/01/2016

In 2012, Arkansas joined Colorado, Kentucky, Louisiana, Maine, Mississippi, New Mexico, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming in signing a memorandum of understanding (MOU) to stimulate the production and demand for original equipment manufacturer (OEM) NGVs. The MOU aims to encourage OEMs to offer functional and affordable light- and medium-duty NGVs, aggregate state vehicle procurement through a joint request for proposals (RFP), boost private investment in natural gas fueling infrastructure, and encourage greater coordination between state and local agencies. In 2012, National Association of State Procurement Officials coordinated the solicitation of a joint RFP, which the Oklahoma Department of Central Services (DCS) issued on behalf of the MOU signatories and additional states. As a result, state fleets have access to more affordable NGVs through dealerships now included in state vehicle purchasing bids. For more information, including awarded vehicles by state and vehicle purchase information for state fleets, see the DCS Statewide Contract for NGVs solicitation page.

Alternative Fuel Grants and Rebates

Archived: 02/01/2015

The Arkansas Alternative Fuels Development Program (Program) provides grants to alternative fuel producers, feedstock processors, and alternative fuel distributors. Producers may be eligible to receive $0.20 per gallon of alternative fuels produced, not to exceed $2 million. Feedstock processors may be eligible to receive up to $3 million or 50% of the project cost, whichever is less, for the construction, modification, alteration, or retrofitting of a feedstock processing facility that is located and operated in Arkansas. Alternative fuel distributors may be eligible to receive up to $300,000 or 50% of the project cost, whichever is less, for assisting with the distribution and storage of alternative fuels or alternative fuel mixtures at distribution facilities that are located and operated in Arkansas. Alternative fuels include biofuel, ethanol, compressed natural gas, or a synthetic transportation fuel.

The Program also provides rebates for the cost of converting diesel or gasoline vehicles to dedicated or bi-fuel natural gas or propane vehicles. The rebate amount is 75% of the conversion system and incremental conversion costs and is determined by the gross vehicle weight rating (GVWR) as shown in the table below.

GVWR Rebate Amount
0-8,500 lbs. $5,000
8,501-14,000 lbs. $8,000
14,001-26,000 lbs. $20,000
Over 26,000 lbs. $32,000

A public entity, company, organization, or affiliate may receive up to $50,000 per fiscal year for conversion costs. Other restrictions and requirements may apply. For more information, see the Arkansas Agriculture Department Programs page.

The Arkansas Agriculture Department must prepare and submit an annual progress report to the governor and the legislative council to include the amount and purpose of each rebate, the total amount expended by the rebate recipient for conversion costs, and the results produced or the progress made in converting conventional vehicles to operate on natural gas or propane.

(Reference Arkansas Code 15-13-101, 15-13-102, 15-13-301 to 15-13-306, and 19-6-809)

Idle Reduction Weight Exemption

Archived: 02/01/2014

Any vehicle equipped with idle reduction technology may exceed the state's axle and gross vehicle weight limits by up to 400 pounds to compensate for the additional weight of the idle reduction technology. (Reference Arkansas Highway Police Enforcement Policy 07-03-030)

State Agency Strategic Energy Plans

Archived: 02/01/2014

Each Arkansas state agency must develop an individual strategic energy plan to reduce its energy consumption and environmental impact. The plans may include criteria for vehicle purchases that, to the extent appropriate for the vehicles' intended use, will result in a more fuel-efficient fleet. (Reference Executive Order 09-07, 2009)

Electric Vehicle (EV) Equipment and Fuel Cell Income Tax Credit

Repealed: 03/06/2009

The following was repealed by House Bill 2081, 2009: An income tax credit is available to Arkansas taxpayers to offset the costs of an Arkansas-based facility that designs, develops, or produces advanced technologies, including EV equipment and fuel cells. The credit is equal to 50% of the amount spent during the taxable year to purchase or construct the facility, including land acquisition, infrastructure improvements, renovation, building improvements, machinery, and other manufacturing equipment. This credit does not apply to any portion of facility costs that were provided by federal, state, or local grants. (Reference Arkansas Code 15-4-2104 and 15-4-2105)

Biodiesel Income Tax Credit

Expired: 12/31/2007

An income tax credit was authorized to biodiesel suppliers for up to 5% of the costs of the facilities and equipment used in the wholesale or retail distribution of biodiesel fuels. Additionally, the Alternative Fuels Commission may provide grants of up to $0.10 per gallon for the production of biodiesel, up to 5 million gallons per producer per year, for a period not to exceed five years. Fundng for this incentive ended ini 2007. (Reference Arkansas Code 15-4-2803 and 15-4-2804)

Biodiesel Tax Refund

Expired: 06/30/2007

A biodiesel supplier is entitled to a tax refund of $0.50 per gallon of biodiesel fuel used by the supplier to produce a biodiesel blend that contains not more than 2% biodiesel by volume and that is for sale by the supplier or for use by the supplier in a trade or business. In order to qualify for the tax refund, a supplier must meet the following requirements: 1) sign a financial incentive agreement with the Arkansas Department of Economic Development; 2) obtain approval from the Arkansas Alternative Fuels Commission and the Department of Finance and Administration as a biodiesel producer and have the production capacity to produce at least one million gallons of biodiesel in a 12-month period; and 3) certify that it will produce biodiesel fuel that meets the appropriate federal and state standards. This incentive expires June 30, 2007. (Reference Arkansas Code 15-4-2803)

Hybrid Electric Vehicle (HEV) Rebate

Expired: 03/01/2007

The HEV Rebate Program, administered by the Arkansas Energy Office, provides an incentive to state agencies to purchase new HEVs. The rebate is equivalent to the amount of the sales tax paid for the HEV, and a completed application must be submitted within six months of the delivery and registration of the vehicle. Qualified HEVs must have a hybrid drive train, regenerative braking, and an energy storage device. Rebates are available on a first-come, first-served basis until available funds are exhausted; please check with the Energy Office for availability of funds prior to purchasing a vehicle.

Alternative Fuels Commission

Archived: 03/01/2007

The Arkansas Alternative Fuels Commission Act of 2003 established a seven-member alternative fuels commission to develop, coordinate, and promote the utilization of alternative fuels throughout the state, with emphasis on the production, development, promotion, and utilization of alternative fuels in transportation. The Commission is in charge of making grants and loans, and controls the Alternative Fuels Fund. (Reference Arkansas Code 15-10-601 and 15-10-701)

Rebate Fund for Converting Vehicles

Expired: 03/01/2005

The Arkansas Department of Economic Development established a rebate fund for the cost of converting vehicles to operate on alternative fuels. The fund provides a 50% rebate of up to $2,000 for each vehicle converted to operate on CNG, LNG, and electricity, and up to $1,000 for each vehicle converted to operate on LPG, methanol, and ethanol. The 50% rebate is also available for the incremental cost of purchasing an OEM AFV, with a maximum of $2,000 per rebate. Local governments and private individuals are eligible for these rebates; however, fuel suppliers and state governments are not.