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Arizona Law Establishes New Alternative-Fuel Incentives

by Staff
June 27, 2000
2 min to read


Alternative-fuel vehicles that were purchased or converted by Arizona businesses and residents after Jan. 1, 2000 now qualify for cash rebates or refundable tax credits for 30 to 50 percent of the cost of the vehicle. That is according to Senate Bill 1504, which was signed into law April 28, 2000 and which establishes a number of incentives for Arizona’s Alternative Fuels Program. All businesses and individuals that wish to receive alternative-fuel vehicle rebates or refundable tax credits must first apply for a rebate from the Arizona Department of Commerce Energy Office. The following alternative-fuel vehicles are eligible for Arizona’s alternative-fuel vehicle incentives: natural gas, propane, electricity, solar energy, and hydrogen. Fuels excluded from the incentives are: biodiesel, ethanol, methanol, and naptha/water blends. Factory-manufactured, converted, bi-fuel, and dedicated vehicles qualify for incentives. Some heavy-duty vehicles that are capable of using a combination of at least 70 percent alternative fuel and no more than 30 percent petroleum-based fuel also qualify. Vehicles that do not qualify for incentives include: hybrid-electric vehicles, golf carts, motorcycles, motor-driven cycles, mopeds, motorized wheelchairs, electric bicycles, forklifts, or vehicles that were not designed to be primarily driven on roadways. Rebate application forms will be available from the Energy Office on July 1, 2000. Applications will also be available at that time on the Internet at www.azcommerce.com. If and when rebate funds have been exhausted, the Energy Office will provide the business or individual with an affidavit that will qualify them to receive the same amount in a refundable tax credit. For information, call (602) 280-1300.

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