We prove a pointwise and average bound for the number of incidences between points and hyperplanes in vector spaces over finite fields. While our estimates are, in general, sharp, we observe an improvement for product sets and sets contained in a sphere. We use these incidence bounds to obtain significant improvements on the arithmetic problem of covering
F
q
{\mathbb F}_q
, the finite field with
q
q
elements, by
A
⋅
A
+
⋯
+
A
⋅
A
A \cdot A+\dots +A \cdot A
, where
A
A
is a subset
F
q
{\mathbb F}_q
of sufficiently large size. We also use the incidence machinery and develop arithmetic constructions to study the Erdős-Falconer distance conjecture in vector spaces over finite fields. We prove that the natural analog of the Euclidean Erdős-Falconer distance conjecture does not hold in this setting. On the positive side, we obtain good exponents for the Erdős-Falconer distance problem for subsets of the unit sphere in
F
q
d
\mathbb F_q^d
and discuss their sharpness. This results in a reasonably complete description of the Erdős-Falconer distance problem in higher-dimensional vector spaces over general finite fields.