IFTA - IFTA taxes are applied to vehicles of 3+ axles, or weighing more than 26,000 pounds. IFTA tax tables can be found here.
Alternative Fuel Vehicle and Infrastructure Rebate Program
The Arkansas Energy Office, a division of the Arkansas Economic Development Commission, administers the Arkansas Gaseous Fuels Vehicle Rebate Program (Program), funded by the Clean-Burning Motor Fuel Development Fund. The Program provides 50% of the conversion or incremental cost, up to $4,500, specifically for compressed natural gas (CNG), liquefied natural gas (LNG), or liquefied petroleum gas (propane) vehicle purchases or conversions. CNG must be delivered to a vehicle at 3,000 pounds per square inch and metered on a gasoline gallon equivalent (GGE) or diesel gallon equivalent (DGE) basis. One GGE of CNG is equal to 5.66 pounds (lbs.) and one DGE of LNG is equal to 6.22 lbs. The Arkansas Energy Office reviews and processes vehicle rebate applications on a first-come, first-served basis. Rebates are also available for CNG, LNG, and propane fueling stations in the amount of 75% of qualifying costs, up to $400,000. The Program is currently closed and no funding is available (verified July 2015). (Reference Arkansas Code 15-10-901 to 15-10-904 and 19-5-1249)
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)
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 19-6-301, 26-56-502, 26-56-601,Arkansas Code 26-62-214)
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 (Now Act 347), 2011; and Arkansas Code 15-13-102)
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 annual tax rate by April 1st. Alternative fuel taxes must be paid by licensed alternative fuel suppliers 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 26-62-201)
Natural Gas Metering
Individuals who use natural gas for residential or other tax-free purposes may not use natural gas in motor vehicles unless the natural gas is removed through a separate meter installed by the alternative fuels supplier for such purposes. (Reference Arkansas Code 26-62-203)
Appropriations bill. Reappropriates various funds for natural gas vehicles and fueling stations in three separate amounts: not to exceed $5 million, not to exceed $800,500, and not to exceed $100,000. Reference - SB10 Bill History, Reference - SB10 Bill Text Status: previously this bill was prefiled but has now been introduced; to Joint Committee on Budget 4/13/16; passed Senate 5/3/16, passed House 5/4/16; enacted 5/9/16.
2015 Session - Proposed Legislation
Amends the fuel tax code so that CNG pays tax on 125 cu. ft. (instead of current 100 cu. ft.), and LNG pays on gallon basis. Also, imposes new tax rate schedule as follows: 7/1/15 - 5 cent; 7/1/16 - 8 cent, 7/1/17 - 11 cent; 7/1/18 - 17 cent and 7/1/19 and thereafter 21.5 cent for CNG and 22.5 cent for LNG. The current tax rate on CNG and LNG is 5 cent. 3/17/15 amendments include 126.67 cu. ft. and 5.66 lb. GGE for CNG and use DGE of 6.06 lb for LNG gallon.Reference - HB1703 Bill History, Reference - HB1703 Bill Text Status: Failed on April 22 2015.
Amends the requirements for qualifying vehicles under the rebate program so that rebates are only given to vehicles that are new or are 1 model year old at the time of the rebate request. 3/9/2015 - Amends the requirements for qualifying vehicles under the rebate program so that rebates are only given to vehicles that are new or are 1 model year old at the time of the rebate request. Reference - SB990 Bill History, Reference - SB990 Bill Text Status: Failed on April 22 2015.
Rebate. Amends the Arkansas Alternative Fuels Development Program to expand the vehicle incentives to all types of motor vehicles, dedicated and bi-fuel natural gas and propane vehicles as well as conversions. Current program only encourages natural gas school bus conversions. Under this program, the Arkansas Agriculture Dept. will administer a rebate program to pay for the incremental cost of natural gas and propane vehicles. This will be effective after July 1, 2013. The rebate amount is worth 75% of the incremental cost or conversion cost, and no entity may receive more than $50,000 per year in rebates. Reference - SB-125 Bill History, Reference - SB-125 Bill Text Enacted 2/26/2013; Act No. 152
Rebate. Amends the Arkansas Alternative Fuels Development Program to expand the vehicle incentives to all types of motor vehicles, dedicated and bi-fuel natural gas and propane vehicles but it appears to be limited to conversions. Current program is limited to natural gas school bus conversions. This will be effective after July 1, 2013. All types of entities may apply for rebate, which is worth 50% of the incremental cost or conversion cost: maximum credit of $5,000 for vehicles with GVWR of 8,500 or less; $8,000 for 8,501 - 14,000 GVWR vehicles; $32,000 for vehicles above 26,000 GVWR. No entity may receive more than $75,000 per year in rebates. Like before, the bill leaves out vehicles from 14,001 - 25,999 lbs.Reference - SB-185 Bill History, Reference - SB-185 Bill Text Engrossed 2/27/2013; major difference here is that this bill does NOT include propane unlike SB 125
Loan program. Creates a new loan program for natural gas school buses; includes conversion cost and incremental purchase costs of vehicles, and cost of fueling infrastructure. Loans must be repaid over a 12 year period and the loan rate is 0 percent. The program includes a forgiveness clause that forgives up to 50% of the cost of vehicles or 75% of the cost of fueling infrastructure. School districts participating in the program earn forgiveness at a rate of 1/12 of 50% or 1/12 of 75% for each year they are in the loan program. Reference - HB1834 Bill History, Reference - HB1834 Bill Text Engrossed 3/25/2013
General Improvement Distribution Act of 2013. Provides funding for various alternative fuel initiatives. $1 million for SB 435 program; SB 711 $10,000; SB 435 again $50,000. Need to verify whether the latter amounts are for administration. Reference - HB2232 Bill History, Reference - HB2232 Bill Text Enacted 4/23/2013; Act 1518
Appropriations measures provide $5 million in funding for the development of CNG and LNG stations, and clean-burning vehicle property. The language says for rebates, grants, and incentives. Reference - SB435 Bill History, Reference - SB435 Bill Text Passed Senate 3/12/2013; passed House 3/19/2013; Enacted 4/4/2013; Act 611
Very similar language to SB 435 and offered by Senator Teague. Difference is this bill transfers funds to the Clean Burning Motor Fuel Development Fund from the General Improvement Fund and then makes it available for CNG and LNG stations and clean-burning vehicles. Reference - SB439 Bill History, Reference - SB439 Bill Text Enacted 4/4/2013; Act 613
Arkansas Clean -Burning Motor Fuel Development Act. Vehicle rebates for OEM and converted CNG and LNG vehicles; rebate for vehicles is lesser of 50% of cost of qualified equipment or $4,500. Fueling station rebate worth lesser of 75% of the cost or $400,000; home fueling equipment rebate is lesser of 50% or $2,500. Must apply for the rebates. In order to qualify for the credits the stations must dispense CNG in GGE units defined as 126.67 cubic feet or 5.66 pounds, and LNG in DGE units defined as 6.22 pounds of natural gas. The vehicle rebate requires installation by a certified mechanic even for OEM vehicles. Also note that the GGE and DGE do not actually require this in all cases or use this for taxation purposes; appears to only relate to the rebate program. Reference - SB792 Bill History, Reference - SB792 Bill Text Signed by the Governor 3/28/2013; Act 532
Amends the Arkansas Alternative Fuels Development Program which is essentially a rebate program to include a tax credit for alternative fuel production. The production credits are worth $0.10 per gallon of alternative fuel produced. The legislative impact statement accompanying this bill says that it does include compressed natural gas but does not say LNG is included. Reference - SB933 Bill History, Reference - SB933 Bill Text 3/13/2013 Engrossed.
Amends the motor fuel excise tax to clarify that a GGE of CNG in addition to being 5.66 pounds of CNG is also 125 cubic feet. Appears to tie LNG to diesel fuel but is not clear if adjusts for energy content or not. Does not specify a specific standard for a DGE of LNG. Also adjusts the tax rates imposed in Arkansas as follows (July 1): 2013 5 cents; 2014, 8 cents, 2015 11 cents, 2016 17 cents, 2017 and thereafter 21.5 cents for CNG and 22.5 cents for LNG. Reference - SB1075 Bill History, Reference - SB1075 Bill Text Engrossed 3/14/2013.
To Provide For The Use Of Natural Gas As A Fuel Alternative; To Provide For The Conversion Of Public Transportation Fleet Vehicles; And To Promote The Creation Of A Network Of Compressed Natural Gas Refueling Stations. Reference - SB1104 Bill History, Reference - SB1104 Bill Text Action: 2013-05-17 - Sine Die adjournment
Establishes a Natural Gas School Bus Pilot Program. It is a one year program to place NG buses in four public school districts. The bill says schools will receive grant for the purchase of 10 CNG buses; they also must agree to purchase 10 additional CNG buses. Also amends the current loan program for local school districts to increase the amount from $500,000 to $1,500,000 for the purchase, operation and maintenance of CNG school buses. Reference - SB1146 Bill History, Reference - SB1146 Bill Text Passed Senate 4/2/2013 Signed by Governor 41/12/2013; Act No. 1195[printfriendly]
This state was last examined and updated in August, 2016.