Arkansas Expired Incentives and Laws

Expired State Incentives

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.

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

Expired: 04/09/2007
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 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)

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. (Reference Arkansas Code 15-4-2803 and 15-4-2804) Update: Funding for these provisions was repealed in 2007.

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 breaking, 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.

Expired State Laws and Regulations

Alternative Fuels Commission

Expired: 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)

Expired Utilities/Private Incentives

There are currently no expired utility or private incentives for Arkansas.