State Incentives for Hybrid Vehicles
Some states offer tax (or other) incentives for purchasing hybrid vehicles. Here is a breakdown of what each state offers.
Colorado - Alternative Fuel Vehicle Credit:
For tax years beginning on or after July 1, 1998, Colorado income tax
credits are available for the purchase of an alternative fuel vehicle,
for a motor vehicle that is converted to use alternative fuel, or for
the replacement of the power source with a power source that uses
alternative fuel. To qualify, the vehicle must be titled and registered
in Colorado.
For more information see http://www.revenue.state.co.us/fyi/html/income09.html,
where specific credits are cited for specific models of hybrid
vehicles.
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
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.