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.