About State Incentives for Hybrid Vehicles
Please note: The information below was the information known about a few representative hybrid vehicle incentives at the time this article was origianally written. Due to the possible widespread distribution of this article, the information below may have changed since then and should only be used as a guide as to what you might expect if you purchase a hybrid vehicle. Please check with your state's authorities to get the most up-to-date information.
Some states offer tax (or other) incentives for purchasing hybrid vehicles. Here is a breakdown of what each state offers.
Arizona - Special Plates/HOV Lane
As of Jul. 9, Arizona Revised Statutes from the 47th session Chapters 28-2416 and 28-737 allow hybrid vehicle owners with a $8.00 special plates/hybrid sticker that is displayed on said vehicle to use the High Occupancy Vehicle (HOV) lanes regardless of the number of passengers. Arizona has not instituted this policy as it is awaiting clairification of the federal Hybrid HOV waiver from the Environmental Protection Agency.
Colorado - Alternative Fuel Vehicle Credit:
TheColorado Department of Revenue now offers a tax credit of up to $4,713.00 for the purchase of a hybrid. For more information, including tax credit amounts for Model Years 2002 and 2003, visit http://www.revenue.state.co.us/fyi/html/income09.html.
Colorado has passed legislation that would allow hybrids to use HOV lanes with single occupants.
Connecticut - Sales Tax Exemption:
Prior to July 1, 2008, new hybrid vehicles with a U.S. Environmental Protection Agency (EPA) fuel economy rating of at least 40 mpg are exempt from sales tax. For more information see http://www.ct.gov/drs/
Florida - High Occupancy Vehicle (HOV) Decal:
An Inherently Low Emissions Vehicle (ILEV) or a hybrid vehicle certified by the U.S. Environmental Protection Agency may be driven in a High Occupancy Vehicle (HOV) lane at any time regardless of its occupancy as long as a decal is obtained. For more information see http://www.hsmv.state.fl.us/html/titlinf.html
Kentucky - CMAQ Rebates:
Organizations or individuals located in non-attainment areas are eligible for Congestion Mitigation and Air Quality Improvement Program (CMAQ) vehicle rebates for hybrid vehicles operating within a fleet. For more information see http://revenue.ky.gov/
Maine - Partial Sales Tax Credit:
A partial sales tax credit of approximately \\$500 is available for hybrid vehicles that do not have a comparable vehicle model, such as the Toyota Prius and Honda Insight. A credit of approximately $300 is available for cars that do have a comparable gasoline-powered model, such as the hybrid Honda Civic. For more information see http://www.state.me.us/revenue/
New Jersey - Alternative Fuel Vehicle Rebate Program:
New Jersey's Alternative Fuel Vehicle (AFV) Rebate Program offers rebates to local governments for hybrid vehicles. The rebate amounts vary according to the vehicle weight and class. For more information see http://www.state.nj.us/treasury/taxation/index.html
New York - Alternative Fuel (Clean Fuel) Vehicle Tax Incentive Program:
New York's Alternative Fuel (Clean Fuel) Vehicle Tax Incentive Program offers a sales tax exemption for qualified hybrid vehicles equal to \\$3,000 unless the vehicle manufacturer certifies a higher incremental cost. For more information see http://www.tax.state.ny.us
Oregon - Business Energy Tax Credit:
A Business Energy Tax Credit is available for the incremental cost of purchasing hybrid vehicles. The tax credit is 35% of the incremental cost of the system or equipment and is take over five years. For more information see http://egov.oregon.gov/DOR/
Oregon - Residential Tax Credit:
A Residential Tax Credit of up to \\$1,500 is available for the incremental cost of a hybrid vehicle. For more information see http://egov.oregon.gov/DOR/
Pennsylvania - Alternative Fuels Incentive Grant Program (AFIG):
The purchase of a hybrid vehicle is eligible for funding under the Alternative Fuels Incentive Program; funding amounts vary. For more information see http://www.dep.state.pa.us/dep/deputate/pollprev/AFIG/afvafig1.htm
Texas
At the time of writing this article, Texas had bills in their legislature offering tax breaks to buyers of hybrid cars. This bill would reduce taxes on a hybrid car on a graduated scale based on the vehicle's fuel economy. The Toyota Prius, for example, would receive one of the highest credits because it has one of the best fuel economy ratings.
Utah - Incremental Cost Credit:
Utah allows a credit for 50% of the incremental cost (\\$3,000 maximum) of a Honda Civic Hybrid.
Vermont - HOV Lane Usage:
Alternative Fuel Vehicles displaying the Virginia "Clean Special Fuels" license plate can use the Virginia HOV lanes, regardlesss of the number of occupants, until July 1, 2006. The Toyota Prius, and Honda Insight and Civic hybrid vehicles qualify. For more information see http://www.dmv.state.va.us/webdoc/citizen/vehicles/cleanspecialfuel.asp
Washington - Emissions Control Inspection Exemption:
Effective June 13, 2002, hybrid vehicles that obtain a rating by the U.S. Environmental Protection Agency (EPA) of at least 50 miles per gallon of gas during city driving are exempt from emissions control inspections.
Additionally, some municipalities are offering various incentives such as reduced parking rates for owners of hybrid cars. One source has estimated average tax savings for hybrid owners ranging between a few hundred to as much as three thousand dollars depending on where the owner resides and what sort of mileage (particularly in-city mileage) the vehicle gets. One estimate I saw, for example, showed a Toyota Prius (one of the most fuel efficient hybrid cars) getting as much as a $3,100.00 tax break.
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