Tax Credits and Incentives for Electric Vehicles

Rising fuel prices have many Arkansans re-thinking their gas guzzlers. Electric vehicles (EVs), hybrids, and plug-in hybrid vehicles (PHEVs) are looking good right about now.

What many folks want to know is, are there any incentives or EV tax credits to offset the cost?

Arkansas PHEV and EV Credits

Let’s look close to home first. Unlike many states, Arkansas does not offer tax credits for EVs, hybrids, or PHEVs. The state does, however, offer EV Supply Equipment grants that offset charging stations for government and non-government fleet use, private workplaces, and private multi-unit dwellings.

Federal Incentives for EVs and Plug-In Hybrids

The United States government is slightly more generous with EV and PHEV tax credits. Forbes identifies a long list of EVs and PHEVs that qualify for one-time tax credits ranging from $4,500 to $7,500 depending on their EPA fuel economy ratings.

However, it’s worth noting that some models will be absent from this list because they’ve sold in sufficient numbers that the tax credit has been judged unnecessary.

What’s the Catch?

As of now, there are two. First, Arkansas imposes annual fees for alternate fuel vehicles to offset owners’ lower gas tax contributions; those fees are $200 for EVs, $100 for plug-in hybrids, and $50 for conventional hybrids.

Furthermore, the credits and incentives are available only to the first owner. This means that lessees and buyers of pre-owned alternative fuel vehicles would not qualify. However, this may change thanks to legislation currently working its way through Congress.

Buying “Green” Vehicles at Superior MAZDA

With lower fuel spending and lower maintenance, you’ll still leverage significant savings from an EV regardless of its eligibility for incentives. Superior Mazda can help you navigate these questions, or any others brought on by new technology, so visit us today!