Arizona Laws and Incentives for Vehicle Owner/Driver

The list below contains summaries of all Arizona laws and incentives related to Vehicle Owner/Driver.

State Incentives

Alternative Fuel Vehicle (AFV) High Occupancy Vehicle (HOV) Lane Exemption

Dedicated AFVs are permitted to use HOV lanes, regardless of the number of passengers. Qualified vehicles must display AFV special plates or stickers, which are available from the Arizona Department of Transportation Motor Vehicle Division. Recognized alternative fuels are propane, natural gas, electricity, hydrogen, and a blend of hydrogen with propane or natural gas. (Reference Arizona Revised Statutes 28-337 and 28-2416)

Residential Electric Vehicle Supply Equipment (EVSE) Tax Credit

A tax credit of up to $75 is available to individuals for the installation of EVSE 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 and 28-4032)

Reduced Alternative Fuel Vehicle (AFV) License Tax

The AFV license tax is $4 for every $100 in assessed value. During the first year after initial registration, the AFV's assessed value is 1% of the manufacturer's base retail price (compared to 60% for conventional vehicles). For each succeeding year, the original value of the AFV is reduced by 15%. The minimum amount of the annual AFV license tax is $5. For the purpose of this tax, AFVs include those powered by propane, natural gas, electricity, hydrogen, and a blend of hydrogen with propane or natural gas. (Reference Arizona Revised Statutes 28-5805 and 28-5801)

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)

Idle Reduction Weight Exemption

A heavy-duty vehicle that is equipped with qualified idle reduction technology may exceed the Arizona weight limitations specified in Arizona Revised Statutes 28-1100A by up to 400 pounds to accommodate the weight of the idle reduction technology. (Reference Arizona Revised Statutes 28-1100)

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

Alternative Fuel Vehicle (AFV) Special License Plate

A registered AFV must display an AFV license plate. State or agency directors who conduct activities of a confidential nature and use AFVs are exempt from the requirement to display an AFV special license plate. The Arizona Department of Transportation has the authority to issue regular plates to AFVs used by law enforcement agencies and the federal government. Recognized alternative fuels include propane, natural gas, electricity, hydrogen, and a blend of hydrogen with propane or natural gas. (Reference Arizona Revised Statutes 28-2511 and 38-538.03B)

Alternative Fuel Vehicle (AFV) Emissions Test Requirement

All AFVs, except electric and hydrogen powered vehicles, registered in, or used to commute into, the metropolitan areas of Phoenix or Tucson must complete emissions testing before the vehicle can be registered. Alternatively, a fee may be paid for Model Year 2010 and newer original equipment manufacturer AFVs instead of testing. The testing requirement does not apply to new AFVs being registered for the first time, but emissions testing will be required before an updated registration is granted in subsequent years. For the purpose of this requirement, alternative fuels include propane and natural gas. For more information, visit the Arizona Department of Environmental Quality website. (Reference Arizona Revised Statutes 49-542 and 49-542.05)

Electric Vehicle (EV) Parking Space Regulation

An individual is not allowed to stop, stand, or park a motor vehicle within any parking space specifically designated for parking and charging EVs unless the motor vehicle is an EV and has been issued an alternative fuel vehicle special plate or sticker. A person who is found responsible for a violation may be subject to a civil penalty of at least $350. (Reference Arizona Revised Statutes 28-876)

Neighborhood Electric Vehicle (NEV) Access to Roadways

NEVs may not operate at speeds greater than 25 miles per hour (mph) and are only allowed access to roadways with speed limits of up to 35 mph. NEVs must display a notice of the operational restrictions (either painted or otherwise permanently attached) on the vehicle in a location that is in clear view of the driver. (Reference Arizona Revised Statutes 28-966 and 28-2157)