Arizona Incentives and Laws for HEVs / PHEVs

The list below contains summaries of all Arizona incentives and laws related to HEVs / PHEVs.

State Incentives

Electric Vehicle (EV) Charging Equipment Tax Credit

A tax credit of up to $75 is available to individuals for the installation of an EV charging outlet in a house or housing unit that they have built. To qualify, the outlet must meet certain codes and standards. (Reference Arizona Revised Statutes 43-1090 and 43-1176)

Alternative Fuel Vehicle (AFV) Parking Incentive

An individual driving an AFV may park without penalty in parking areas that are designated for carpool operators provided the vehicle is using alternative fuel. Recognized alternative fuels include propane, natural gas, electricity, hydrogen, and a blend of hydrogen with propane or natural gas. (Reference Arizona Revised Statutes 28-877)

Alternative Fuel and Alternative Fuel Vehicle (AFV) Tax Exemption

The Arizona use tax does not apply to the following: natural gas or liquefied petroleum gas (propane) used to propel a motor vehicle; AFVs, if the AFV was manufactured as a diesel fuel vehicle and converted to operate on an alternative fuel; and equipment that is installed on a conventional diesel fuel motor vehicle to convert the vehicle to operate on an alternative fuel. Recognized alternative fuels include propane, natural gas, electricity, hydrogen, and a blend of hydrogen with propane or natural gas. (Reference Arizona Revised Statutes 42-5159)

Utility/Private Incentives

Plug-In Electric Vehicle (PEV) Charging Rate - APS

The Arizona Public Service Company (APS) offers an electricity rate option to residential customers who own a qualified PEV. To be eligible, customers must have an Advanced Metering Infrastructure meter in place. Additional restrictions apply. The rate will be available through December 31, 2014. For more information, see the APS Electric Vehicle Rate Impact website.

Laws and Regulations

Joint Use of Government Fueling Infrastructure

To the extent practical, a state agency or political subdivision that operates an alternative fueling station must allow vehicles other state agencies or political subdivisions own or operate to fuel at the station. Recognized alternative fuels include propane, natural gas, electricity, hydrogen, and a blend of hydrogen with propane or natural gas. (Reference Arizona Revised Statutes 49-572)

Federal Fleet Operation Regulations

Federal fleets based in Arizona that operate primarily in counties with a population of more than 1.2 million people must be comprised of at least 90% alternative fuel vehicles. Alternatively, federal fleets may meet acquisition requirements through alternative fuel use or apply for waivers. Recognized alternative fuels include propane, natural gas, electricity, hydrogen, qualified diesel fuel substitutes, E85, and a blend of hydrogen with propane or natural gas. (Reference Arizona Revised Statutes 49-573)