Green Driver State Incentives in Arkansas

Arkansas drivers have multiple opportunities to save green by going green. Learn more about money-saving incentives for eco-friendly drivers below, whether you currently drive an electric car, hybrid, or alternative fuel vehicle or are in the market to buy a fuel-efficient car.

As environmental matters push to the forefront, AR's green-driving regulations might also evolve. Keep pace by checking out our page titled Green Vehicle Laws and Regulations, consulting your local Department of Finance and Administration office, and referring to the Alternative Fuels Data Center (AFDC).

Arkansas Vehicle Registration and Emissions Testing

At this time, Arkansas does not require emissions testing as a requirement of first-time vehicle registration or registration renewal. To learn more about the state's involvement in pollution-reducing efforts, check out the online driver resource of the Air Division of Arkansas Department of Environmental Quality. It covers emission facts and details on the latest Ozone Action Days. For more on how cars pollute the environment, refer to our page on smog and emissions checks.

Federal Tax Credits for Fuel-Efficient Car Buyers

Although Arkansas does not offer state tax incentives to residents who drive environmentally friendly vehicles, the Internal Revenue Service gives numerous tax breaks. Owners of the following fuel-efficient vehicles might be eligible for federal tax credits:

  • Electric cars (EV).
  • Hybrids.
  • Plug-in hybrids (PHEV).
  • Diesels.
  • Alternative fuel vehicles (AFV).

For specifics, refer to If you have tax-related questions on taking advantage of these incentives consult a tax professional or your local IRS Taxpayer Assistance Center.

Auto Insurance Discounts for Eco-Friendly Driving and Green Vehicles

Some Arkansas auto insurance providers offer insurance discounts for having green driving habits and/or driving a fuel-efficient vehicle. Consult your car insurance company about potential green vehicle discounts such as:

  • Hybrid auto discounts.
  • Alternative fuel vehicle (AFV) discounts.
  • Economy car discounts.
  • Low-mileage discounts.
  • Pay as you drive discounts.

Insurance providers and individual circumstances dictate whether you're eligible for money-saving insurance discounts. For example, you might receive up to a 10% discount on car insurance for owning or leasing a hybrid car. Low mileage can earn you even higher insurance discounts.

If your Arkansas auto insurance falls short when it comes to eco-friendly driver discounts, compare auto insurance rates online and find one that suits your budget.

Conversion Rebates for Compressed Natural Gas Vehicles

Arkansas offers two rebates to entice residents to convert their vehicles to more eco-friendly fuels. Read on for details.

According to the Alternative Fuels Data Center (AFDC), Arkansas has a program offering rebates to those who convert diesel- and gasoline-powered vehicles to run on compressed natural gas (CNG). Post conversion, your vehicle must run solely on compressed natural gas—or as a bi-fuel vehicle. Consult the AFDC and the Arkansas Agriculture Department Programs page for details.

Under this program, the State also offers grants to those who produce alternative fuel, process feedstock, and distribute alternative fuel.

Note that the Arkansas Energy Office of the Arkansas Development Commission has also decided to develop a rebate plan converting vehicles to run on the following:

  • Hydrogen fuel cells.
  • Compressed natural gas.
  • Liquefied natural gas (LNG).

Resources will come from the Clean-Burning Motor Fuel Development Fund. Consult the Arkansas Energy Office for the latest.

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