Alternative Fuel Vehicle Conversion Rebate Program

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.