Everything You Need to Know about Arkansas EV Tax Credits & Rebates in 2025
1. Arkansas EV Tax Credits: What’s Available?
- Arkansas currently offers no state tax credits or purchase rebates for buying a new or used electric vehicle (EV or PHEV)
- The state does levy an annual registration fee of $200 for all‑electric vehicles ($100 for PHEVs, $50 for hybrid electric vehicles), which goes toward highway and municipal funds
2. Federal EV and Charger Tax Credits You Can Still Use
While there are no direct Arkansas EV Tax credits, federal benefits can still make EVs cost-effective:
🚗 Clean Vehicle Federal Tax Credit (Clean Vehicle Credit)
- Offers up to $7,500 for new EVs or PHEVs that meet eligibility standards under the Inflation Reduction Act (IRA), including assembly in North America, battery mineral sourcing, MSRP limits, and income caps
- Used EV buyers may qualify for up to $4,000 if vehicle meets age, price, and dealer-sale requirements .
- These federal credits end on September 30, 2025—so act quickly
🔌 EV Charger Installation Credit
- A federal tax credit up to $1,000 is available for installing a qualified Level 2 home EV charger located in a low‑income or rural (non-urban) IRS-defined census tract
- This charger credit extends through June 30, 2026
3. Utility & Charger Provider Rebates in Arkansas
Though the state offers no direct EV rebate, select utilities in Arkansas do provide $250 rebates on Level 2 home charger purchases for eligible customers:
- Entergy, Ozarks Electric Cooperative, and SWEPCO each offer $250 rebate to residential customers who install a Level 2 charger and enroll in EV‑charging or time‑of‑use (TOU) plans .
- These rebates are utility-specific and typically stack with federal charger credits to reduce installation costs significantly.
4. State Charging Infrastructure & Rebate Programs
Arkansas agencies have focused on building EV charging infrastructure rather than offering consumer vehicle rebates:
- Through the Arkansas Energy & Environment (E&E) Level 2 EVSE Rebate Program, government, non‑profit, and commercial entities received $629,000+ in reimbursement covering 137 Level 2 stations—but residential and post‑2022 installations were ineligible
- Arkansas has also received $54 million through the NEVI program (2022–2026) to expand charging along major highways
As of April 2025, there are over 370 public charging stations across Arkansas (about 963 ports), including ~50 DC fast charging ports and 8 Tesla Supercharger locations
✅ Summary Table
| Incentive Type | Provider/Program | Amount | Notes |
|---|---|---|---|
| New EV Purchase Credit | Federal – Clean Vehicle Credit | Up to $7,500 | Must meet IRA eligibility; ends 9/30/25 |
| Used EV Purchase Credit | Federal – Used EV Credit | Up to $4,000 | Price ≤ $25K, dealer sale, ends 9/30/25 |
| Charger Installation | Federal 30C | $1,000 | Income/nonurban census tract; ends 6/30/26 |
| Utility Charger Rebate | Entergy, SWEPCO, Ozarks Electric | $250 | Install Level 2 + enroll in TOU rate |
Final Thoughts
There are no Arkansas EV Tax Credits, but you can still save thousands by combining federal credits and utility rebates. The federal credit for new EVs (up to $7,500) and the charger installation credit (up to $1,000) remain available until late 2025 and mid‑2026, respectively. Local utility rebates of around $250 further reduce upfront cost—especially if you select a Level 2 charger and time-of-use plan.
To maximize savings:
- Choose an EV model that qualifies under IRA rules.
- Purchase before September 30, 2025.
- Install a Level 2 charger if eligible for $1,000 federal credit.
