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Tax incentives and/or other incentives for drivers of electric vehicles in Patagonia.
All-electric vehicles, hydrogen vehicles, and current model year propane and natural gas vehicles 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, excluding electric, solar, and hydrogen 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 registered in Arizona is $4 for every $100 in assessed value. The minimum amount of the annual AFV license tax is $5. AFV assessed values are determined as follows:
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. For more information, see the ADOT AFV website. The reduced alternative fuel vehicle license tax does not apply to any vehicle purchased on or after December 31, 2022.
(Reference 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. Violators may be subject to a civil penalty of at least $350. (Reference Arizona Revised Statutes 28-876)
The Arizona Department of Transportation (ADOT) must issue a special license plate to dedicated AFVs. Dedicated AFVs are defined as vehicles powered exclusively by propane, compressed natural gas, electricity, or hydrogen. There is no limit to the number of AFV license plates ADOT can issue. The Arizona Department of Environmental Quality (ADEQ) must inspect vehicles converted to operate solely on alternative fuel and issue an Alternative Fuel Certificate before converted vehicles may receive the AFV special 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. For more information, see the ADOT AFV and ADEQ Vehicle Emissions Testing website.(Reference Arizona Revised Statutes 28-2416)
Arizona use taxes do not apply to natural gas or propane used in an AFV, AFVs converted to operate on alternative fuels, or the equipment used to convert a diesel vehicle to an AFV. 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 a time-of-use (TOU) rate for residential customers that own or lease a plug-in hybrid electric or plug-in electric vehicle. The TOU rate applies to daily super off-peak hours and additional off-peak hours on weekends, holidays, and some weekday hours. Eligible customers must be able to separately meter EV charger usage. For more information, including how to enroll, see the SRP Electric Vehicle Price Plan website.
The Arizona Corporation Commission (Commission) defines EVs as transportation vehicles that use electricity for propulsion. The Commission issued an EV policy statement that provides guidelines on EVs, charging infrastructure, and transportation electrification to utilities the Commission regulates. The policy addresses the state of EVs in Arizona, EV benefits, and barriers to adoption. For more information, see the Commission’s EV policy statement and the Corporation Commission website. (Reference Docket RU-00000A-18-0284 decision number 77044)
TEP provides a rebate to residential customers that covers up to 75% of the cost of EVSE installation. The maximum rebate awards are $500 for a two-way charger and $250 for a one-way charger. For more information, including how to apply, see the TEP Electric Vehicles website.
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