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Tax incentives and/or other incentives for drivers of electric vehicles in 85360.
Dedicated AFVs qualify for an AFV special license plate, which are available from the Arizona Department of Transportation (ADOT). Recognized alternative fuels are propane, natural gas, electricity, and hydrogen. There is no limit to the number of AFV license plates ADOT can issue. For more information, see the ADOT AFV website.
In addition, certain plug-in hybrid electric vehicles are eligible for the Energy Efficient license plate from ADOT. At any time, only 10,000 eligible vehicles may be registered for the Energy Efficient license plate. ADOT has reached its maximum limit of 10,000 vehicles and the issuance of Energy Efficient license plates to new program participants has been suspended until further notice (verified June 2018). For more information, including how to apply, see the ADOT Energy Efficient Plate Program website.(Reference Arizona Revised Statutes 28-2416 and 28-2416.01)All-electric vehicles, hydrogen powered vehicles, and current model year propane and natural gas vehicles (NGVs) registered for the first time in Arizona are not required to complete emissions testing. This exemption does not apply after the first registration year. All AFVs, with the exception of electric, solar, and hydrogen powered vehicles, used to commute into Phoenix or Tucson are required to be emissions tested before they are registered. For more information, visit the Arizona Department of Environmental Quality website. (Reference Arizona Revised Statutes 49-542 and 49-542.05)
The vehicle license tax for an AFV is $4 for every $100 in assessed value. During the first year after initial registration, the AFV's assessed value is 1% of the manufacturer's suggested retail price (MSRP) compared to 60% for conventional vehicles. For each succeeding year, the original value of the AFV is reduced by 15%. The minimum amount of the annual AFV license tax is $5. For the purpose of this tax, AFVs include those powered exclusively by propane, natural gas, electricity, hydrogen, or a blend of hydrogen with propane or natural gas.
Beginning January 1, 2020, the vehicle license tax for a previously registered AFV will be a percentage of the MSRP set by Arizona Department of Transportation (ADOT). For each succeeding year, the original value of the AFV is reduced by 15%. The vehicle license tax for an AFV that is less than 10,000 pounds gross weight this is purchased on or after January 1, 2020, will be 30% of the MSRP. For each succeeding year, the original value of the AFV is reduced by 15%.For more information, see the ADOT AFV website.(Reference House Bill2166, 2018, and Arizona Revised Statutes 28-5801)An individual driving a dedicated AFV may park without penalty in parking areas that are designated for carpool operators, provided the vehicle is using alternative fuel. Recognized alternative fuels include propane, natural gas, electricity, hydrogen, and a blend of hydrogen with propane or natural gas. (Reference Arizona Revised Statutes 28-877)
NEVs may not operate at speeds greater than 25 miles per hour (mph). An NEV may not operate on a roadway with a speed limit greater than 35 mph, except to cross that roadway. NEVs must display a notice of the operational restrictions (either painted or otherwise permanently attached) on the vehicle in a location that is in clear view of the driver. (Reference Arizona Revised Statutes 28-966 and 28-2157)
An individual is not allowed to stop, stand, or park a motor vehicle within any parking space specifically designated for parking and charging EVs unless the motor vehicle is an EV and has been issued an alternative fuel vehicle special plate or sticker. A person who is found responsible for a violation may be subject to a civil penalty of at least $350. (Reference Arizona Revised Statutes 28-876)
A registered AFV must display an AFV license plate. State or agency directors who conduct activities of a confidential nature and use AFVs are exempt from the requirement to display an AFV special license plate. The Arizona Department of Transportation has the authority to issue regular plates to AFVs used by law enforcement agencies and the federal government. Recognized alternative fuels include propane, natural gas, electricity, hydrogen, and a blend of hydrogen with propane or natural gas. (Reference Arizona Revised Statutes 28-2416 and 28-2511)
The following are exempt from the Arizona use tax: natural gas or liquefied petroleum gas (propane) used to propel a motor vehicle; AFVs, if the AFV was manufactured as a diesel fuel vehicle and converted to operate on an alternative fuel; and equipment that is installed on a conventional diesel fuel motor vehicle to convert the vehicle to operate on an alternative fuel. Recognized alternative fuels include propane, natural gas, electricity, hydrogen, and a blend of hydrogen with propane or natural gas. (Reference Arizona Revised Statutes 42-5159)
SRP offers an experimental time-of-use (TOU) electricity rate for the first 10,000 customers with a qualified PEV. The TOU rate is for the super off-peak hours between 11pm and 5am daily. Participation is subject to certain equipment availability and other restrictions. For more information, see the SRP Electric Vehicle Price Plan website.
SRP customers are eligible for a $3,000 rebate for the purchase of a new 2018 Nissan Leaf at participating dealerships. Rebates are available through September 30, 2018. For more information, see the SRP Nissan Leaf Rebate Flyer.
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