Arkansas Incentives and Laws for Propane (LPG)
The list below contains summaries of all Arkansas incentives and laws related to Propane (LPG).
Laws and Regulations
Alternative Fuel Definition and Specifications
Alternative fuels include biofuel, ethanol, compressed 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 specifications and federal quality requirements for each category or grade of fuel. Biofuel includes biodiesel or renewable diesel, renewable gasoline, renewable 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 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 Senate Bill 875, 2011; House Bill 1452, 2011; and Arkansas Code 15-13-102)
Alternative Fuel Vehicle (AFV) Conversion
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 within 10 days of the conversion. An owner or operator who fails to report such a conversion may be subject to a penalty. (Reference Arkansas Code 26-62-214)
Alternative Fuels Tax
Excise taxes on alternative fuels are imposed on a gasoline gallon equivalent basis. The tax rate for each alternative fuel type is based on the number of motor vehicles licensed in the state that uses that type, not including vehicles the federal government owns or leases. (Reference Arkansas Code 26-62-201)
Liquefied Natural Gas (LNG) and Propane Tax and User Permit
LNG and propane (liquefied petroleum gas or LPG) used as motor fuel are taxed on a per vehicle basis through an annual flat fee 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. (Reference Arkansas Code 26-56-301 and 26-56-304)
