Alternative Fuel Vehicles Tax Exemption

June 02, 2023


Per Arizona state law, alternative fuel vehicles receive a 100% use tax exemption if the vehicle was manufactured as a diesel vehicle and was converted to run on alternative fuel. This tax exemption is also available for equipment that is installed in a diesel fuel motor to convert it to run on alternative fuel.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Arizona
Incentive Type: Personal Tax Exemption
Web Site:
Start Date:
Eligible Renewable/Other Technologies:
  • Medium-Duty Electric Vehicles
  • Heavy-Duty Electric Vehicles
Incentive Amount: 100% use tax exemption


This program has 1 incentives
Technologies: Medium-Duty Electric Vehicles, Heavy-Duty Electric Vehicles
Sectors: Residential
Parameters: The incentive is 100.00 % of cost


Name: ARS 42-5159

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.