Search Federal and State Laws and Incentives

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)

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)

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))

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)

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:

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)

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.

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)

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. For more information about Arkansas’ NEVI plan, see the Joint Office’s State Plans for EV Charging website.

Regional Electric Vehicle (EV) and Autonomous Vehicle (AV) Support

Arkansas joined Oklahoma (Signatory States) in signing a memorandum of understanding (MOU) to support advanced mobility solutions, including EVs, AVs, and battery manufacturing. Signatory States are committed to:

• Establishing a launch pad for research and commercialization of EVs, AVs, and battery manufacturing;
• Collaborating with industry leaders and fueling stations;
• Supporting workforce development opportunities; and,
• Coordinating EV, AV, and battery manufacturing economic development efforts across the region.

For more information, see the Arkansas Governor’s Office press release.