Alternative Fuel Vehicle Conversion Rebate Program

August 01, 2002


This program, which is administered by the Arkansas Department of Economic Development, provides a 50% rebate for the cost of conversion of a vehicle to alternative fuels. Eligible renewable fuels include: liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), electricity, ethanol or methanol. For CNG, LNG and electric conversions, the maximum rebate is $2,000 and, for LPG, ethanol and methanol, the maximum rebate is $1,000. The rebate is also available for the purchase of a new, factory-equipped alternative fuel vehicle. In this case, the rebate totals 50% of the added cost of the vehicle being adapted for alternative fuel use. The original allocated fund for these rebates totaled $250,000. To date, 90 rebates have been made (28 for CNG and 62 for LPG) totaling $76,700. Rebates will be available on a first come, first serve basis until the funds are exhausted. It should be noted that those eligible for this program may be eligible for one of two federal tax deduction programs. The Federal government offers a deduction of up to $2,000 for the conversion of vehicles to qualified clean fuel burning vehicles, and a deduction of 10% of the purchase price up to $4,000 for electric vehicles.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Arkansas
Incentive Type: Rebate Program
Web Site:
Administrator: Arkansas Department of Economic Development
Start Date:
Eligible Renewable/Other Technologies:
  • Renewable Fuels
Incentive Amount: 50%
Maximum Incentive: $2,000 or $1,000 for ethanol, methane, LPG


Name: Reda Bowen
Organization: Arkansas Department of Economic Development
Address: One State Capitol Mall, Suite 4B/215
Little Rock AR 72201
Phone: (501) 682-6103

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.