Alternative Fuel Vehicle Fee Reduction Program

March 28, 2023

Summary

Note: In accordance with Arizona Revised Statute 28-5805, alternative fuel vehicles are assessed VLT using the same formula used for traditional vehicles. Those vehicles that were intitally registered prior to 2023 will keep their current VLT formula until the vehicle ownership changes or the registration is canceled.

Vehicles that were registered prior to 2023 must use the following fuel types.

  • Electric
  • Hydrogen
  • Natural Gas
  • Solar

See this webpage for formulas.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Arizona
Incentive Type: Personal Tax Deduction
Web Site: https://azdot.gov/motor-vehicles/vehicle-services/vehicle-registration/alternative-fuel-vehicle
Administrator:
Start Date:
Eligible Renewable/Other Technologies:
  • Passenger Electric Vehicles
  • Medium-Duty Electric Vehicles
  • Heavy-Duty Electric Vehicles
Incentive Amount: $4 for every $100 in assessed value. Assessed value for vehicles registered prior to 1/1/2022 is 1% of the MSRP. For vehicles registered between 1/1/2022 and 12/31/2022, the assessed value is 20% of the MSRP

Authorities

Name: Arizona Revised Statute 28-5805

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.