State and Federal Hybrid Incentives A list of all Federal and State incentives for prospective hybrid owners.

Incentives

What you will find below are hybrid vehicle incentives already enacted, and many that are still being considered. Those incentives marked "(bill)" are still under consideration. Some provide consumer tax benefits, others parking perks. Incentives that allow hybrids to use HOV lanes with only one passenger are under review in some states due to a concern that this incentive be allowed to phase out if HOV lanes become too crowded. We encourage you to contact your state and local representatives to voice your support for pending hybrid incentives in your state, or recommend to legislators in states without hybrid incentives that they introduce hybrid incentive bills on their own. We are always trying to keep this list as comprehensive as possible, so if you know of a hybrid incentive in your city, county, or state that we haven't found out about, please let us know.

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Federal

Federal Hybrid HOV Waiver: On March 10, 2006 the House of Representatives approved a $284 billion highway bill (H.R. 3) that includes a waiver for states to be allowed to open the HOV lanes to hybrid cars rated at least 45 miles per gallon. Senator Jim Talent's (R-MO) successfully introduced an amendment to the Senate highway bill that would give states the discretion to open up their HOV lanes to hybrid vehicles that achieve at least a 50 percent increase in fuel efficiency in the city and a 25 percent increase in fuel efficiency in combined city-highway miles over the non-hybrid model, regardless of the number of passengers and as long as it meets any Tier 2 federal emissions standard. This would allow vehicles such as the Ford Escape Hybrid to qualify. The House and Senate bills have been reconciled and passed as of August 1 and include the Senate language. President Bush signed H.R. 3 into law the week of August 8, 2006. The EPA provided guidance on this law on 5/17/07, noting that hybrid vehicles that achieve at least a 50 percent increase in fuel efficiency in the city and a 25 percent increase in fuel efficiency in combined city-highway miles over the non-hybrid model, and met federal Tier 2, Bin 5 emissions standards would qualify for the exemption, but states can opt to toughen EPA's criteria, though may not reduce them. Details of the EPA guidance can be found here.

Federal Tax Credits for Advanced Vehicles: On August 8, President Bush signed the comprehensive energy bill into law. Included were new tax credits for advanced vehicle technologies ranging from $250 to $3,400 depending on the vehicle's level of fuel economy improvement. For a limited time, quality hybrids like the Honda Civic Hybrid, Toyota Prius or Ford Escape Hybrid will qualify for tax credits in the range of $1,700-$3,150. The tax credits will be available beginning on January 1, 2006 and will be available through December 31, 2010, though they will expire earlier for the most popular hybrids. The full tax credits will be available until a manufacturer reaches 60,000 vehicles sold (60,000 for Toyota, 60,000 for Ford, etc.). Once a manufacturer has sold 60,000 vehicles, a one-year "phase out" will begin after the next complete calendar quarter; 50% of the credit will be available for that manufacturer's hybrids in the first two quarters of the phaseout period and 25% in the final two quarters. Preliminary IRS guidance on the tax credit can be found here.

Update: As of June 2006, Toyota officially met its 60,000 vehicle cap. Consumers of qualifying Toyota vehicles can still get the full tax credit through September 2006. Vehicles purchased from October 2006 through March 2007 will qualify for 50% of the stated tax credit. Vehicles purchased April through September 2007 will be eligible for 25% of the tax credit. After September 2007, the tax credit will no longer be available for Toyota vehicles.

As of August 2007, Honda officially met its 60,000 vehicle cap. Consumers of qualifying Honda vehicles can still get the full tax credit through December 2007. Vehicles purchased from January 2008 through June 2008 will qualify for 50% of the stated tax credit. Vehicles purchased July through December 2008 will be eligible for 25% of the tax credit. After December 2008, the tax credit will no longer be available for Honda vehicles.

More IRS information on the tax credits can be found here.

UCS estimates the following credits for each hybrid vehicle currently sold:

* Incentive numbers officially given by the Internal Revenue Service. Others are estimates calculated by UCS staff.

Insurance discount for hybrids (private): Hartford-based Travelers personal lines is offering nationwide a 10 percent discount on auto insurance to customers driving hybrid-electric models. The discount of up to 10 percent applies only to certain coverages and may not be available in all states. The discount is currently available in Alabama, Arizona, Arkansas, California, Colorado, Connecticut, District of Columbia, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana , Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey , New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, and Wisconsin.

Insurance discount for hybrids (private): Los Angeles-based Farmers Insurance Group of Companies is offering a 10 percent discount on auto insurance to customers who own a hybrid-electric or alternative fuel vehicle. The discount of up to 10 percent applies to all major coverages and is currently available in Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Wisconsin, and Wyoming. The company anticipates expanding the discount program to customers in 30 other states by 2007. All new business customers receive the discount as of the new business date, and existing customers receive the discount upon renewal.

Hotel Discounts for Hybrid Drivers (private): A number of hotels are offering discounted or free parking and special room rates to customers who own or rent a hybrid. Guests driving hybrid cars park free at the 60 Renaissance Hotels & Resorts properties across the U.S. Kimpton Hotels offers special promotions for hybrid drivers—up to $20 off rooms, half-price parking, or both—at its properties in Boston, Washington, D.C., Portland and other cities. Additional hotels in California, including the Fairmont hotel chain, the Argent Hotel in San Francisco and the Little River Inn near Mendocino provide similar perks.

Tax Credit for Plugin Hybrids (bill): The House of Representatives included a consumer incentive for the purchase of plugin hybrid vehicles in their version of the 2007 Energy Bill (HR 2776). The bill establishes a new credit for each qualified plug-in vehicle placed in service during each taxable year by a taxpayer. The base amount of the credit is $4,000. If the qualified vehicle draws propulsion from a battery with at least 5 kilowatt hours of capacity, the credit amount is increased by $200, plus another $200 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours up to 15 kilowatt hours. Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records 60,000 sales. The credit is reduced in following quarters. The credit is available against the alternative minimum tax (AMT). This proposal is estimated to cost $1.22 billion over 10 years. This credit did not appear on the Senate version of the Energy Bill. The differences between the two bills will be resolved by a conference committee after Congress' August recess.

Up to $1,000 in rebates on Escape Hybrid, 0% financing in D.C. area and California (private): As of 3/16/06, Ford Motor Company is currently offering a nationwide package of rebates and discounts that could total up to $1,000 for the Ford Escape Hybrid. Ford dealers in the Washington, D.C. area and in California are also offering 5-year 0% financing on Escape Hybrids. The financing offer cannot be combined with the rebates, and was offered for three weeks.

Domestic hybrid extended tax credit (bill): Congressman Rahm Emanuel (D-IL) has introduced H.R. 4458, the 'American Hybrid Tax Credit Act of 2005.' The bill would give an additional $3,000 tax credit over and above the currently enacted federal tax credits for "a new qualified hybrid motor vehicle which is assembled in the United States." The total tax credit would be capped at $6,000. This would currently apply to the Ford Escape Hybrid and Mercury Mariner. Models expected to be released in 2006 that would qualify for this extended credit would be the Toyota Camry Hybrid (built in Kentucky) and the Nissan Altima Hybrid (built in Tennessee). Referred to the Ways and Means Committee 12/7/05. This bill was not voted on in the 109th Congress, and was not enacted.

Lifting the 60,000 cap on the hybrid tax credit (bill): Senators Evan Bayh (D-IN), Joe Lieberman (D-CT), and Sam Brownback (R-KS) have introduced a broad bill (S. 2025) that would remove the cap on hybrid tax credits as part of a package to reduce domestic oil usage. Representative Jack Kingston (R-SC) and Elliot Engle (D-NY) introduced a similar bill (H.R. 4409) in the House. Representative Chris Shays (R-CT) introduced a broad ranging energy bill (H.R. 4384) that in addition to several incentives for renewable energy and energy efficiency across all energy sectors would remove the cap on hybrid tax credits. This bill was not voted on in the 109th Congress, and was not enacted.

Federal Tax Deduction: H.R. 1308 Sec. 319 Working Families Tax Relief Act of 2004
There is a one-time tax-deduction for clean vehicles from 2003-2006.
2004-2005--$2000.00 deduction
Eligibility for this deduction expired on January 1, 2006, and was replaced by the federal tax credit for advanced vehicles. Vehicles purchased in 2005 are still eligible for this deduction on 2005 tax forms. Claim information can be found at http://www.fueleconomy.gov/feg/tax_hybrid_old.shtml

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Alabama

Hybrid Sales and Excise Tax Credit (bill): Among its provisions, SB 341/HB 588 would provide businesses and individuals a $300 sales and excise tax credit on the in-state purchase of a qualifying fuel efficient vehicle, which includes certain hybrid vehicles. Introduced and referred to committee 3/29/07.

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Arkansas

Hybrid Tax Exemption (bill): HB 1358 would exempt the sale of qualified new hybrid vehicles from the gross receipts and compensating use tax from 07/01/07 to 06/30/11. Introduced 01/31/07 and recommended for study in the interim 03/29/07.

Hybrid Income Tax Credit (bill): For taxable years after 2006, SB 2314 would provide a $750 income tax credit for the purchase of a qualified hybrid vehicle. Introduced 03/02/07 and recommended for study in the interim 03/29/07.

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Arizona

State Hybrid HOV: As of 7/29/05 Arizona Revised Statutes from the 47th session Chapters 28-2416 and 28-737 allow hybrid vehicles that have been approved by the United States environmental protection agency as meeting, at a minimum, the United States environmental protection agency ultralow emission vehicle standard 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 clarification of the federal Hybrid HOV waiver from the Environmental Protection Agency. On 2/7/06 SB 1179 was passed by the Senate that would reaffirm the HOV benefit--pending federal clearance. On 09/08/06, Gov. Napolitano issued Executive Order 2006-13 which directs the establishment of a pilot program to allow qualified hybrid vehicles to drive in carpool lanes. On 2/8/07, Gov. Napolitano officially began the Arizona hybrid HOV program. Vehicles that achieve a 45 percent increase in combined city/highway fuel efficiency over their conventional equivalent (currently the Honda Insight, Honda Civic Hybrid and Toyota Prius) can qualify for an HOV exemption. The special license plate can be ordered online at www.servicearizona.com or by calling (602) 255-0072.

Vehicle License Tax Reduction (bill): HB 2228 makes hybrid motor vehicles eligible for the same reduced vehicle license tax as alternative fuel vehicles. The reduced vehicle license tax would be one percent of the manufacturer’s suggested retail price (MSRP) for the first twelve months. For all years after the first twelve months the MSRP is reduced by fifteen percent each year. Introduced and sent to Transportation, Appropriations, and Rules Committees 1/18/07, Second Read 1/22/07, Held 2/01/07.

Vehicle License Tax Reduction (bill): SB 1466 would reduce the annual vehicle license tax for vehicles that have the average MPG (arithmetic average of city and highway MPG), as established under federal guidelines, by the following amounts: 25 percent for a vehicle with an average MPG rating of at least 31 but less than 36. 50 percent for a vehicle with an average MPG rating of at least 36 but less than 41. 75 percent for a vehicle with an average MPG rating of at least 41 but less than 46. It sets the tax at $10 for a vehicle with an average MPG rating of 46 miles per gallon or greater. Reintroduction of SB 1466. Referred to the Finance, Rules, Appropriations, and Transportation committees 2/1/06. Passed Transportation committee 2/14/06. No further action taken -- did not pass.

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California

State Hybrid HOV: On Jan. 1, 2005, CA will allow hybrid electric vehicles that get at least 45mpg and have SULEV emissions ratings to use high occupancy vehicle (HOV) lanes without regard to the number of passengers in the vehicle. As of 8/10, this incentive is now in operation. Current eligible vehicles include the Toyota Prius, Honda Insight and Honda Civic hybrid. Vehicles must have special decals in order to use HOV lanes. Note: A total of 75,000 decals are available and will be granted on a "first come-first served" basis. For more information go to http://www.arb.ca.gov/msprog/carpool/carpool.htm

On Sept. 29, 2006, the Governor signed AB 2600, which increases the number of carpool decals available for qualified hybrid vehicles by 10,000 to 85,000. It also extends the sunset date of the program by three years to 2011. This legislation was somewhat controversial given the results of a California Department of Transportation report which found that some carpool lanes were becoming congested with hybrids, reducing the incentive to carpool. In late January, 2007, state officials said that they now had more applications than they did additional decals to grant.

San Jose Free Hybrid Parking: Free parking at downtown San Jose public parking facilities and on-street meters throughout the City for Clean-Fuel Vehicles purchased in San Jose. Began 1/1/03. Eligibility-- Contact-- Jason Burton (408) 794-1427, jason.burton@ci.sj.ca.us.

Los Angeles Hybrid Free Parking -- Gas-electric hybrid cars can park at parking meters for free, but can still be ticketed for exceeding the time allotment for metered spaces. They ran through a 6 month trial period from October 2004-March 2005. The LA City Council recently voted an extension of the incentive through May 2005 while the LA Department of Transportation prepares an evaluation. Police Officers have been trained to recognize hybrid cars.

If you own a Zero Emission Vehicle or Super Low Emission Vehicle as defined by the California Air Resources Board, you may purchase a California Clean Air Vehicle Decal from the California Department of Motor Vehicles. Once you have purchased and affixed the decal to your vehicle per DMV instructions, you can park without depositing coins at metered parking spaces (however, you remain subject to the posted time limit restrictions) throughout the city. To find out how to obtain a California Clean Air Vehicle Decal, go to: http://www.dmv.ca.gov/vr/decal.htm

According to a representative at the LA Department of Transportation, four hybrid vehicles were identified as eligible to receive the free metered parking privileges during the pilot program: Toyota Prius, Honda Civic Hybrid, Honda Insight and Ford Escape Hybrid.

For more information e-mail the LA Department of Transportation at ladot@dot.lacity.org.

Update: On 6/21/06, the Los Angeles City Council approved an extension of the parking benefit through calendar year 2007.

Clean Car Discount (bill): AB 493 would provide one-time rebates and one-time surcharges on the purchase of new cars depending on each vehicle’s emissions of global warming pollution. The rebates are funded by one-time surcharges on new vehicles with higher emissions of global warming pollution. The maximum rebate or surcharge will be capped at $2,500, with the average rebate or surcharge likely to fall somewhere between $900 and $1,400. Introduced 2/21/07.

Belmont City Services Perk (proposal): A draft proposal offering incentives for residents to purchase hybrid or low-emission cars is expected to go before the Belmont City Council. City Councilman Dave Warden hopes to offer a $500 credit toward city services, such as swimming lessons, construction permits for kitchen remodels, repaved driveways or building permits, to residents who buy "greener" vehicles.

Hybrid Personal Income and Corporation Tax Credit (bill): As amended, AB 505 would authorize up a personal income and corporation tax credit for the amount of tax paid or incurred by a taxpayer during the taxable year for a qualified vehicle, up to $500. A qualified vehicle is defined as a hybrid vehicle or an alternative fuel vehicle that meets California's advanced technology partial zero-emission vehicle (AT PZEV) standard or a hybrid vehicle that meets California's ultra-low emission vehicle (ULEV), super ultra-low emission vehicle (SULEV), or partial zero-emission vehicle (PZEV) standards. Introduced 02/20/07 and referred to committee.

Hybrid Truck Grants (bill): AB 1440 would require the State Air Resources Board to provide grants to medium- and heavy-duty truck manufacturers and operators to demonstrate the in-use commercial performance of hydraulic assist and hybrid electric propulsion systems in those vehicles through 01/01/11. Introduced 02/23/07 and referred to committee.

Hybrid Tax Deduction (bill): SB 308 would for taxable years beginning on and after 01/01/07 allow a $3,000 personal income tax deduction for the purchase or initial lease of a 2007 or newer model year qualified hybrid. This incentive would be repealed on 12/01/11 or when 100,000 qualified vehicles have been sold since 01/01/07. Introduced 02/16/07 and referred to committee.

Up to $1,000 in rebates on Escape Hybrid, 0% financing in D.C. area and California (private): From 3/16-4/6/06, Ford Motor Company offered a nationwide package of rebates and discounts that could total up to $1,000 for the Ford Escape Hybrid. Ford dealers in the Washington, D.C. area and in California were also offering 5-year 0% financing on Escape Hybrids. The financing offer could not be combined with the rebates.

Santa Barbara County Incentives for Hybrids: Incentive funding ($1000) for up to ten (10) hybrid vehicles is available for Santa Barbara Air Pollution Control District residents. Funding currently depleted. Contact--Irene Salazar ISalazar@energy.state.ca.us. Responsible agency--California Energy Commission. Program ended March 30, 2004 and is no longer in effect.

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Colorado

Statewide Hybrid Tax Credit: Prior to July 1, 2011, an income tax credit is available from the Colorado Department of Revenue for the incremental cost of purchasing an AFV or for the conversion of a vehicle to operate using an alternative fuel. HEVs also qualify for this incentive. More information, including a full list of credit rates for qualifying vehicles by model and year, as well as rebate instructions and forms is available at http://www.revenue.state.co.us/fyi/html/income09.html.

State Hybrid HOV: Colorado has passed legislation that would allow the hybrids to use the HOV lanes with single occupants, providing that the law did not violate any Federal regulations or prevent Colorado from receiving Federal funds. Update 8/18/06: While a federal waiver has been passed, a representative from the Colorado Department of Transportation has informed UCS that, "Pursuant to passage of the new federal transportation reauthorization bill, CDOT is analyzing that bill and our state law to make sure what we have in place in state law is compatible. We don't expect to make any changes right away-the EPA has up to 180 days to give the states guidelines for which vehicles would be allowed into HOV lanes pursuant to the new federal law, and we don't want to start issuing stickers to folks and then "take them away" again."

Aspen hybrid tax credit & free parking: Hybrid vehicles registered in the city of Aspen are eligible for a $100.00 rebate on license registration is allowed to park with impunity in the city's residential and carpool zones. Owners must register the vehicle with the Parking Department. The program was started in 2003. As of November 2005, there was some discussion among Aspen's mayor Helen Klanderud and City Council members of terminating the program, but no action has been taken.

Free Hybrid Parking: Manitou Springs offers free parking to hybrid vehicles in the two city parking lots. The free-parking offer comes three months after Manitou City Council members voted to inventory the city’s ecological footprint and do what it could to reduce greenhouse-gas emissions.

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Connecticut

Hybrid Sales Tax Exemption: Prior to October 1, 2008, Hybrids getting at least 40 mpg are exempt from the state's 6% sales tax.

Hybrid Municipal Property Tax Abatement: Among its provisions, HB 7432 allows (but does not require) municipalities to abate property taxes, in an amount to be determined by the local legislative body, for hybrid motor vehicles and those with fuel efficiencies of at least 40 miles per gallon that are bought between 01/01/08 and 06/30/10. It also reestablishes the sales and use tax exemption on the sale (on or after 01/01/08 to 07/01/10) of vehicles with city or highway fuel efficiencies of at least 40 miles per gallon. Introduced as an emergency certified measure 05/31/07 and signed by the Governor 06/04/07. Several local governments in Connecticut, including West Hartford and Manchester, are considering proposals to exempt qualified vehicles from property taxes.

Free Hybrid Parking in New Haven: On June 6, 2005, the city of New Haven passed a law permitting hybrid vehicles registered in New Haven free parking at metered spots within the city. The ordinance will take effect within one month and only apply to alternative fuel vehicles registered in New Haven. Owners will have to come to City Hall to receive a decal which will be attached to the vehicle. Motorists will still need to obey posted time limits and must park in legal spots. For more information contact DSlap@Newhavenct.net.

Hybrid Sales Tax Exemption (bill): HB 5458 would grant a sales tax exemption to individuals purchasing hybrid vehicles with gas mileage ratings over forty miles per gallon on the highway or in the city. Referred to Join Environment Committee 1/16/07.

Hybrid Property Tax Exemption (bill): HB 6564 would eliminate the local property tax on all hybrid vehicles purchased on or after July 1, 2007, that qualify for the state sales tax exemption. Referred to Joint Environment Committee 1/22/07.

Hybrid HOV and Municipal Property Tax Abatement (bill): Among it’s provisions, substitute SB 1260 would allow single-passenger hybrid vehicles to drive in high occupancy vehicle (HOV) lanes. It would also extend the current sales tax exemption for hybrid vehicles to include all hybrid passenger vehicles, not just cars, that get at least 40 miles per gallon in the city or on the highway. The bill would permit municipalities to abate by ordinance, in whole or in part, personal property taxes on hybrid passenger vehicles or motor vehicles exclusively powered by a clean alternative fuel. Similar property tax and HOV lane exemptions are contained in SB 1432 and substitute SB 1374, among others. Introduced and referred to committee 02/21/07.

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Washington DC

"Hybrid/Hummer" Tax: Within the DMV Reform Amendment Act Of 2004 went into effect on April 15, 2005. One provision exempts owners of hybrid and other alternative fuel vehicles from excise tax on their vehicle, and will reduce the vehicle registration charge, while excise tax rates for heavy passenger vehicles (over 5,000 pounds) will increase to 8% (from 7%). For more information, contact Elizabeth.Berry@dc.gov or Corey.Buffo@dc.gov.

Up to $1,000 in rebates on Escape Hybrid, 0% financing in D.C. area and California (private): As of 3/16/06, Ford Motor Company was offering a nationwide package of rebates and discounts that could total up to $1,000 for the Ford Escape Hybrid. Ford dealers in the Washington, D.C. area and in California are also offering 5-year 0% financing on Escape Hybrids. The financing offer cannot be combined with the rebates, and was offered for three weeks. This incentive has expired.

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Florida

State Hybrid HOV: HEVs that are certified and labeled in accordance with federal regulations may be driven in HOV lanes at any time, regardless of the number of passengers in the vehicle. The vehicle must have a decal issued by the Florida Division of Motor Vehicles, obtained for a $5 fee, which must be renewed annually. More information available from the Florida Division of Motor Vehicles at dmv@hsmv.state.fl.us or (850) 922-9000. (Reference Florida Statutes 316.0741)

Miami Beach Hybrid Parking Discount: The Miami Beach City Commission approved a year-long pilot program that provides parking perks to hybrid owners. Starting Jan. 15, city residents who own a hybrid vehicle can get a 25 percent discount on neighborhood parking permits. Hybrid owners who live outside of the city can get a 25 percent discount on the monthly parking rate at city garages and lots. Discounted on-street parking decals, which can be used at metered spaces or city surface lots throughout Miami Beach, will also be available to hybrid owners. Finally, under the program, a select number of spaces at city owned parking garages would be set aside for hybrid vehicles.

Hybrid Sales Tax Exemption (bill): SB 438 would exempt new hybrid purchases from sales tax. The sales tax that is eligible for refund shall be computed on the sales price of the alternative motor vehicle up to a maximum sales price of $15,000. Introduced 03/06/07, referred to Communications and Public Utilities, Environmental Preservation and Conservation; Finance and Tax, and General Government Appropriations Committees.

Hybrid Tax Exemptions (bill): SB 2576 exempts transactions involving the sale or lease of hybrid vehicles and vehicles from the tax on sales, rental, use, consumption, storage, or distribution imposed by state law. Introduced 3/02/07.

Hybrid Sales Tax Refund (bill): As introduced, HB 7123 would establish the Energy Efficient Motor Vehicle Sales Tax Refund Program to provide refund of the sales tax paid on the lesser of $15,000 or the purchase price of a new alternative motor vehicle, including a qualified new hybrid motor vehicle. The refund program would expire 07/01/10. This provision was removed before the bill’s final passage.

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Georgia

State Hybrid HOV: Upon approval through either legislative action in the United States Congress or regulatory action by the United States Department of Transportation to permit hybrid vehicles with fewer than two occupants to operate in a high occupancy vehicle lane, the department shall authorize hybrid vehicles that register and receive a special license plate or decal for a $25.00 fee.

A hybrid gasoline-electric passenger vehicle or light truck is eligible for the waiver, if for any 2000 and later model, a vehicle which has received a certificate of conformity under the Clean Air Act, 42 U.S.C. Section 7401, et seq., and meets or exceeds the equivalent qualifying California low-emission vehicle standard under Section 243(e)(2) of the Clean Air Act, 42 U.S.C. Section 7583(c)(2), for that make and model year or, for any 2004 and later model, a vehicle which has received a certificate that such vehicle meets or exceeds the Bin 5 Tier II emission level established in regulations prescribed by the administrator of the Environmental Protection Agency under Section 202(i) of the Clean Air Act, 42 U.S.C. Section 7521(i), for that make and model year vehicle and which achieves a composite label fuel economy greater than or equal to 1.5 times the Model Year 2002 EPA composite class average for the same vehicle class and which is made by a manufacturer. Contact: James Udi, Georgia Environmental Protection Division, james_udi@dnr.state.ga.us.The state DOT is still awaiting interpretation of the federal HOV waiver by the Environmental Protection agency before implementing the program..

Hybrid Income Tax Credit (Bill): H.B. 21 would provide for an income tax credit for the purchase or lease of a new hybrid vehicle. Introduced 12/14/2004--went to 2nd readers on 2/3/05. Bill was not enacted.

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Hawaii

Hybrid Tax Credit, Parking, & HOV Use (bill): HB 1486/SB 1990 provides up to a $1,500 tax credit for the purchase of a hybrid or alternative fuel motor vehicle, retroactive from 2005 through 2010; allows hybrid or alternative fuel motor vehicles to be used in high-occupancy vehicle lanes, and allows free metered parking for hybrid and alternative fuel motor vehicles. Introduced in House on 1/24/07, referred to Energy and Environment, and Finance Committees. Introduced in Senate 1/24/07, referred to Energy and Environment, Transportation and International Affairs, and Ways and Means Committees.

Clean Car Discount (bill): HB 1888/SB 1703 would impose a one per cent tax on the sale of passenger cars and light-duty trucks weighing more than five thousand pounds curb weight to fund a rebate program for hybrid and alternative fuel vehicle purchases. Introduced 1/24/07 in House and referred to Energy and Environment, and Finance Committees. Introduced 1/24/07 in Senate. Passed by Energy and Environment Committee 2/7/07 and referred to Economic Development and Taxation Committee.

Hybrid Tax Credit (bill): SB 985 would give an unspecified tax credit for the purchase of a hybrid vehicle. Introduced 1/19/07. Passed Committee on Energy and Environment 2/6/07. Referred to Economic Development and Taxation Committee.

Hybrid Excise Tax Exemption (bill) SB 1098 would exempt hybrids that can obtain at least 35 highway miles per gallon from the general excise tax. Introduced 1/19/07. Passed Committee on Energy and Environment 2/8/07 and referred to Economic and Taxation Committee.

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Iowa

Hybrid Tax Credit (bill): HSB 279/SSB 1243 would provide a state tax credit on the purchase of a hybrid vehicle equal to 20 percent of the current federal tax credit for qualifying vehicles. Introduced 3/6/07 and referred to Ways and Means Committees.

Fuel Economy Tax Credits (bill): S.F. 121 would give a $500.00 tax credit on the purchase of a new automobile with an EPA-estimated city fuel economy of 30mpg or above. This bill died in committee on 1/9/06.

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Illinois

Hybrid Vehicle Rebate: Illinois has pledged $2 million to its new "Green Rewards" program which offers $1,000 rebates to Illinois residents who purchase hybrid or other energy-efficient vehicle. To get a rebate, buyers must secure a car loan from a participating bank or credit union for a new hybrid vehicle or an eligible electric or fuel cell vehicle. Purchasers can receive one rebate per vehicle, allowing municipalities or other entities to receive additional cash back when acquiring fuel-efficient fleets. To fund the program state funds will be deposited at local banks and credit unions at a below-market interest rate. The money that those institutions save in interest is passed to consumers in the form of $1,000 rebates at the time of purchase. There are no income or price restrictions for this rebate.

The hybrids eligible for the rebate are:

Compressed natural gas vehicles, hydrogen fuel cell and battery-electric vehicles are also eligible.

For more information, contact (312) 814-1901, (217) 557-6436 or cultivateillinois@treasurer.state.il.us.

Wilmette Hybrid Sticker Fee Discount: The City of Wilmette raised its vehicle sticker fee to $75, providing a discount only to vehicles that meet the EPA’s SmartWay or SmartWay Elite criteria. Only two models sold in Illinois, the Honda Civic Hybrid and Honda Civic GX NGV, qualify for the SmartWay Elite designation and reduced fee ($25), though more cars qualify for the Smart Way designation and reduced fee ($50).

Frankfort Hybrid Sticker Fee Waiver: In 11/06, the Frankfort Village Board voted to waive the $5 registration sticker fee for hybrid vehicles.

Hybrid Tax Credit (bill): HB 608 would for tax years ending on or after December 31, 2008 through tax years ending on or before December 30, 2009, create a $500 income tax credit for each taxpayer who purchases, at retail during the tax year, a hybrid vehicle or a flexible fuel vehicle. Introduced 2/2/07 and referred to Revenue Committee.

Hybrid Tax Exemption (bill): Beginning on the effective date of the bill and through 06/30/13, HB 172 would exempt hybrid vehicles and hybrid vehicle components from the use, service use and service occupation tax. Introduced 01/19/07 and re-referred to committee 3/23/2007.

State Tax Credit for Hybrids (bill): HB 4163 would grant a $500.00 state tax credit for hybrid vehicles in tax years 2007 and 2008. Referred to Rules Committee on 10/27/05. Motion Filed to Discharge Committee 4/21/06. Did not pass at end of legislative session.

Tax Credit in Governor's Budget (bill): Governor Blagojevich has proposed a $500 tax credit for buyers who purchase highly fuel efficient automobiles in his 2006 budget request. Vehicles must meet a standard of 35 miles per gallon for gas or diesel vehicles and 25 mpg for flexible-fuel vehicles. Qualifying hybrids include Toyota Prius, Honda Insight, Honda Civic Hybrid, and Ford Escape Hybrid (front-wheel drive). Recommendation did not become law in 2006.

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Indiana

Hybrid Tax Deduction (bill): HB 1370 would provide a one-time $1,500 tax deduction on hybrid vehicles, alternative fuel vehicles, and electric vehicles. Introduced 1/16/07 and referred to Ways and Means Committee.

Hybrid Tax Credit (bill): As introduced, H.B. 1332 would provide an income tax deduction equal to the lesser of $1,000 or $85 per month for each month the taxpayer owns a hybrid vehicle. Passed the House 2/2/06, but amended to not include the hybrid incentive provisions.

Hybrid Tax Credit Proposal (bill): In August 2006, Indiana House Republicans presented a "homegrown" energy plan that included a proposal for a one-time $1,000 tax credit for hybrid vehicle purchases.

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Kansas

Hybrid Tax Credit (bill): For taxable years 2007 and 2008, HB 2222 would establish a $2,500 refundable state income tax credit for the purchase of a hybrid vehicle. The tax credit would be capped at $2.5 million per fiscal year. Introduced and referred to Committee on Energy and Utilities 01/25/07. Committee hearing on 2/6/07. A summary of the hearing can be found here.

Hybrid Tax Credit (bill): SB 140 would provide up to a $750 tax credit for a hybrid vehicle or gasoline vehicle that gets better than 40 miles per gallon. Introduced 1/22/2007 and referred to Assessment and Taxation Committee. Hearing held 2/13/2007. A summary of the hearing can be found here.

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Kentucky

State hybrid tax credit (bill): HB 113 would create a state tax credit of $500 for the purchase of a new hybrid vehicle of model year 2007 or later. Introduced 1/2/07 and referred to Appropriations and Revenue Committee.

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Louisiana

State Tax Credit: The Louisiana Department of Natural Resources offers a state income tax credit worth 20% of the cost of converting a vehicle to operate on an alternative fuel, and 20% of the incremental cost of purchasing an Original Equipment Manufacturer (OEM) alternative fuel vehicle (AFV). For the purchase of an OEM AFV, the tax credit cannot exceed the lesser of 2% of the total cost of the vehicle or $1,500. Only those vehicles registered in Louisiana can receive the tax credit. For more information, please contact the Louisiana Department of Natural Resources at (225) 342-1399 or the Louisiana Department of Revenue at (225) 219-0102, option 2. (Reference Revised Statutes (RS) S47:38 and S47:287.757). The Louisiana department of revenue concluded that "The cost of equipment involved in converting to a hybrid vehicle or installed by a manufacturer of hybrid vehicles can be used to compute this credit." Note: The Revenue Ruling No. 02-019 November 8, 2002 established the department's position on allowing hybrids vehicles to receive this credit. However, a Revenue Ruling does not have the force and effect of law and is not binding on the public. It is a statement of the department's position and is binding on the department until superseded or modified by a subsequent change in statute, regulation, declaratory ruling, or court decision.

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Massachusetts

Hybrid HOV (bill): S2062 would allow hybrid vehicles that meet the Ultra Low Emission Vehicle emissions rating access to HOV lanes regardless of number of passengers. Introduced 1/10/07 and referred to Transportation Committee.

Williamstown Fuel Efficient Motor Vehicle Grant Program: The town of Williamstown, Massachusetts launched a program which offers owners of 2003-2007 model hybrids and other fuel-efficient vehicles registered in the town a reimbursement grant of up to 75 percent of the state motor vehicle excise tax paid. For vehicles that have an EPA-rated fuel economy of at least 50 miles per gallon (city), owners can get up to 75 percent of the excise tax due in fiscal year 2007. Owners of vehicles with an EPA-rated fuel economy of at least 30 miles per gallon (city) can apply for a reimbursement grant of 50 percent of the state motor vehicle excise tax paid. You can access the grant application by visiting http://www.williamstown.net/2007 - 2 fuel efficient vehicle application.doc

Hybrid Sales Tax Exemption (bill): H 3044 would exempt from sales tax the sale of hybrid electric vehicles on Earth Day. Introduced 01/11/07 and referred to committee.

Hybrid HOV Exemption (bill): H 928 would allow the operation of hybrid vehicles in HOV lanes, regardless of the number of passengers. Introduced 01/11/07 and referred to committee.

Hybrid Excise Tax Exemption (bill): H 3067 would reduce the excise tax rate imposed upon the sale of any qualified electric or hybrid vehicle to zero percent. It would also set the excise tax rate to 2 percent for the sale of any new passenger vehicle with a fuel efficiency rating of 30 mpg or higher for city driving and 35 mpg or higher for highway. The rate for all other new passenger vehicles would be five percent. A similar bill, H 3899, would reduce the current excise tax rate by half for the purchase of hybrid vehicles. Both bills were introduced 01/11/07 and referred to committee.

Hybrid Excise Tax Exemption (bill): Among its provisions, S 1772 would exempt from the excise tax the sale and the storage, use or other consumption, prior to 07/01/08, of a qualified new hybrid vehicle or a vehicle exclusively powered by a clean alternative fuel. Introduced 01/10/07 and referred to committee.

Hybrid Emission Inspection Exemption (bill): S 1409 would exempt from the state emissions and maintenance inspection programs qualified hybrid motor vehicles with an EPA rating of 50 mpg during city fuel economy tests unless remote sensing devices indicate the hybrid vehicle may not meet current emissions standards. Introduced 01/10/07 and referred to committee.

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Maryland

Baltimore Monthly Parking Discount: Beginning on October 31, 2005, the city of Baltimore will offer discounted parking for hybrid vehicles at 15 locations around the city. Initially, Baltimore will cap participation at 200 vehicles, and the program will apply only to monthly, contract parking. Eligible models will be the Toyota Prius, the Honda Insight and the Honda Civic Hybrid. Owners can apply for a decal that will let them park in specially designated spots in the city's garages. A set number of first-floor spots will be designated in each garage for hybrids and a corresponding number of decals will be issued for that garage. Waiting lists will be used if more car owners are interested in taking part. Baltimore is also considering reduced metered parking charges for hybrids.

Participating Garages

Vehicle Emission Tests Exemption Law : HB 61 exempts qualified hybrid electric vehicles that achieve a city fuel economy rating of at least 50 mpg from motor vehicle emissions testing and inspection requirements. Introduced 1/21/2003 and enacted. This exemption was extended by HB 367 in 2005 and by HB 131/SB 103 in 2007. The current law exempts qualified vehicles from such test until 3 years after the date when the vehicle was first registered in the state.

Hybrid Excise Tax Credit (bill): SB 771 provides a credit on the excise tax for a hybrid vehicle of up to $1,000 depending on the percentage of total power the battery system of the vehicle provides. Introduced 2/14/07 and referred to Budget and Taxation Committee. Hearing held 3/14/07.

Hybrid Excise Tax Exemption (bill): HB 124 provides a 100 percent exemption on the excise tax for purchase of a vehicle that gets 60 miles per gallon or more. A 50 percent reduction in excise tax would be available for vehicles rating 30-59 miles per gallon. Introduced 1/24/07 and referred to Ways and Means Committee.

Hybrid Tax Credit (bill): SB 295/SB 776 provides a tax credit for a hybrid vehicle of up to $2,000 (SB 295) or $4,000 (SB 776) depending on the percentage of total power the battery system of the vehicle provides. SB 295 introduced 1/31/07, SB 776 introduced 2/14/07, both referred to Budget and Taxation Committee. Hearing held on both bills on 2/28/07.

Hybrid State Tax Credits: The Maryland Clean Energy Incentive Act, effective July 1, 2000, through July 1, 2004, provided tax credits against the 5% vehicle excise tax, up to $2,000 for EVs and up to $1,000 for qualifying HEVs for model year 2000 and later. The credit values for HEVs vary depending on the amount of rechargeable energy and regenerative braking utilized. Credits range from $250 to $1,000. Though available CEIA tax credits or rebates expired June 30, 2004, you still may be able to receive a tax rebate on products covered by the Maryland Clean Energy Incentive Act, if purchased within the dates of the Act. For more information, contact Michael Li of the Maryland Energy Administration at (800) 72-ENERGY, or via email at mli@energy.state.md.us. (Reference Annotated Code of Maryland, Section 13-815 of the Transportation Article). Note: this program expired in 2004.

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Maine

Hybrid Sales Tax Credit (bill): LD 2 would give a 50 percent sales tax credit for a hybrid or other advanced technology vehicle. Introduced 12/15/06. Tabled by Senate Taxation Committee 2/5/07.

Hybrid Rebate Program (bill): As introduced, LD 1347 would establish a rebate program for state residents who purchase a hybrid vehicle. It directs the Maine Department of Environmental Protection to establish a formula and method for the awarding of rebates under this program. This provision was removed from the bill before passage.

Hybrid Sales Tax Credit (bill): LD 275 (HB 275 and SB 95) would exempt from the sales tax 100 percent of the sale or lease price of a new hybrid gasoline-electric, fuel-cell, or hydrogen fueled vehicle. This bill also places a 5% surcharge on the purchase or lease for more than one year of a vehicle that does not attain at least 27.5 miles per gallon, as found in the federal Corporate Average Fuel Economy, CAFE, standards. The surcharge does not apply to commercial motor vehicles. Passed the House 5/10/05. Carried over to 122nd session of the House and Senate on 6/18/05. Died in session 5/24/06.

State Partial Sales Tax Credit (Expired): Until 2006, Maine provided a partial sales tax credit of approximately $500 for hybrid cars for which there is no comparable vehicle powered by gasoline, such as the Toyota Prius and Honda Insight (Reference MRSA Title 36 §1752 and §1760-79). It also allowed a credit of approximately $300 for vehicles that have a comparable gasoline-powered model, such as the Honda Civic Hybrid. The incentive expired 12/31/05.

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Michigan

Ferndale Free Hybrid Parking: The city council passed an ordinance that allows free parking at city meters for drivers of hybrids and other vehicles that average 30 miles per gallon or more in city driving. Owners of eligible automobiles must register and pay an annual fee in order to get a permit for the exemption. The exemption began 09/01/06 and was renewed in October 2007. To find out if your car qualifies, call the City Assessor at (248) 546-2372 from 8 a.m. to 5 p.m. weekdays.

Hybrid HOV (bill): HB 6611 would mandate that the state transportation department to consider allowing hybrid vehicles that use a combination of internal combustion and electrically-generated power to use the carpool lanes. Referred to Transportation committee 11/14/06.

Business Tax Credit for Fleets (bill): SB 704 would provide businesses with fleets of 25 vehicles or more a $1000.00 tax credit for purchase or lease of an alternative energy vehicle that by the definition of the Michigan Next Energy Authority Act (PA 593, 2002) includes hybrid electric vehicles. Referred to Committee on Technology and Energy 8/31/2005.

Use Tax Exemption (bill): HB 5086 would exempt an alternative energy vehicle that by the definition of the Michigan Next Energy Authority Act (PA 593, 2002) includes hybrid electric vehicles from the Michigan use tax from September 30 2006 to September 30 2008. Referred to Committe on Tax Policy 8/10/2005.

Sales Tax Deduction (bill): HB 5223 would allow those purchasing an alternative energy vehicle that by the definition of the Michigan Next Energy Authority Act (PA 593, 2002) includes hybrid electric vehicles to compute sales tax based not on the price of that vehicle, but instead on a comparable vehicle powered only by motor fuel. Referred to Committee on Tax Policy 9/27/2005.

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Minnesota

Hybrid HOV (bill): HF 1243 and SF 1536 would authorize single occupant hybrid vehicles to travel on high-occupancy vehicle lanes and toll collection. A decal identifying the vehicle as a hybrid for $15 would be required. SF introduced 3/10/05 and HF introduced 2/22/05. Amended and passed Senate Transportation Committee 4/4/05 (adding sunset provision in 2007) and House Transportation Committee 4/6/05. Passed by Senate 5/23/05. Received by House 3/1/06. Did not become law in 84th legislative session.

Sales Tax Exemption (bill): HF 1171 and SF 1227 would exempt certain hybrids from motor vehicle sales tax. The bill also defines fuel-efficient vehicles by weight class and mileage ratings. HF introduced on 2/21/05 and SF introduced 2/24/05. Did not become law in 84th legislative session.

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Missouri

Hybrid Tax Credit (bill): SB 40/HB 53 includes a provision granting a tax credit of $1,500 or 10 percent (whichever is least) of a vehicle purchase price to qualifying hybrid vehicles. This credit would have a sunset provision of six years after date enacted. HB 53 is exclusively the hybrid tax credit, while SB 40 includes numerous other alternative fuel infrastructure and vehicle fueling and purchase tax credits. SB 40/HB 53 introduced 1/3/07. SB 40 passed Ways and Means Committee 3/1/07 and reported to Senate Formal Calendar for Perfection on 3/12/07. HB 53 passed Special Committee on Energy and Environment 2/20/07 -- no floor action scheduled to date.

State Hybrid Income Tax Deduction (bill): HB 1092 authorizes an individual income tax deduction, for tax years beginning on or after January 1, 2006, for a qualified hybrid vehicle that is powered by a combination of an electric motor and gasoline engine. The deduction is limited to the lessor of 10% of the purchase price of the vehicle or $1,500. The provisions of the bill will expire six years from the effective date. Passed House 4/20/06; Passed out of Senate Committee 5/10/06 and placed on the Senate informal calendar 5/11/06. Was not voted on by Senate in 2006 session.

Hybrid Tax Credit: SB 1023 creates a hybrid vehicle tax credit; a tax credit for taxpayers who purchase a hybrid vehicle. The credits are not refundable and are available on a first come first serve basis and must be filed by the individual within six months of purchasing the vehicle. The act sets a limit of five hundred dollars for each individual applying for such credits and in each fiscal year, the aggregate amount of all such credits shall not exceed fifty thousand dollars. Hearing Conducted Senate Commerce, Energy and the Environment Committee 3/28/06. Was not voted on in 2006 session.

Alternative Fuel and Alternative Fuel Vehicle Rebates (bill): HB 798 would establish rebates for hybrid and alternative fuel vehicles. For vehicles weighing less than 8,500 lb gross weight, buyers are eligible for up to ten percent of the incremental cost for a hybrid vehicle, with a maximum of five hundred dollars per vehicle or if the hybrid has no comparable conventional model on which to base the incremental cost calculations, up to ten percent of the total purchase price with a maximum of one thousand dollars per vehicle. For vehicles weighing more than 8,500 lbs gross weight, buyers are eligible for up to fifty percent of the incremental cost for a bi-fuel, flex-fuel, or hybrid vehicle, with a maximum of ten thousand dollars per vehicle or if the hybrid has no comparable conventional model on which to base the incremental cost calculations, up to ten percent of the total purchase price with a maximum of ten thousand per vehicle. Public hearing held 04/14/2005, in Agriculture Committee. Was not voted on in 2005 legislative session.

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Mississippi

Hybrid Tax Credit (bill): HB 342/1731 would grant a $2,000 state tax credit for the purchase of a new hybrid vehicle that meets federal low emission vehicle standards. Introduced 1/3/07. Died in Ways and Means Committee 2/21/07.

Hybrid Ad Valorem Tax Exemption (bill): SB 2502 would grant a full ad valorem tax exemption on the purchase of a new hybrid vehicle that meets federal low emission vehicle standards. Introduced 1/10/07. Died in Finance Committee 2/21/07.

Matching Federal Tax Credit (bill): HB 1644 states that any taxpayer who purchases a new hybrid electric vehicle without the intent to resell the vehicle and who does not resell the vehicle within five years from the date of purchase shall be entitled to a credit against the taxes imposed by this chapter in an amount equal to the amount established by federal law. Passed the House 2/21/06. Passed the Senate 3/14/06. Died in Conference Committee 3/27/06.

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Montana

Special Hybrid Parking at the Bozeman Public Library: The new Bozeman Public Library has reserved some of its prime parking spaces for hybrid and carpool vehicles. The library is seeking Leadership in Energy and Environmental Design (LEED) certification for its new building, which has incorporated other sustainable building design and construction concepts.

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North Carolina

Hybrid Tax Credit: SB 1576 (and SB 1581) would allow those who purchase or lease a motor vehicle with a hybrid propulsion system that operates on both electricity and a petroleum‑based motor fuel a $2000.00 state tax credit. Introduced 5/17/06 and referred to Finance Committee. Was not acted upon in 2005-2006 legislative session.

Alternative Fuel Vehicle Tax Credit (bill): SB 1015 and HB 1766 would establish a tax credit for alternative vehicles. A taxpayer that purchases or leases a new alternative fuel vehicle or a hybrid electric vehicle would be allowed a credit in the amount of $2,000.00. In order to be eligible for the credit allowed by this section, the vehicle must have a gross vehicle weight of less than 10,000 pounds and must be registered in this State. The credit that would be allowed under this section is allowed only to the first individual to take title to the motor vehicle other than for resale. Introduced on 3/23/05-- referred to Senate Finance Committee on 3/24/05 and House Finance Committee 5/12/05. Was not acted upon in 2005-2006 legislative session.

Mobile Source Emissions Reduction Program (bill): SB 1038 would establish this program that provides grants efforts that reduce mobile emissions such as alternative fueled vehicles, hybrid electric vehicles, truck stop electrification, and installation of oxidation catalysts and particulate matter traps on diesel vehicles. These grants will be funded by a surcharge on registration fees of motor vehicles that undergo emission testing. The surcharge will be determined by the amount of emissions the motor vehicle emits: more emission, the larger the tax. H.B. 1595 would establish a similar mobile source emissions reduction program funded by a surcharge on vehicle registration based on the EPA Green Vehicles Ratings Guide. Sent to Senate Agriculture/Environment/Natural Resources Committee on 3/24/05. Referred to House Finance Committee 5/5/05. Was not acted upon in 2005-2006 legislative session.

Advanced Vehicles Research Center Tax Credit (bill): SB 684 and HB 625 would establish a facility primarily used to conduct transportation research, development, and testing on vehicles utilizing advanced technologies, including hybrid and multifuel systems, hydrogen and fuel cells, and nonfossil fuel technology. A taxpayer that contributes cash or property to an advanced vehicle research entity for construction or operation of an advanced vehicle research center that is located in an enterprise tier one area at the time of the contribution is allowed a credit equal to the value of the contribution. Referred to Senate Finance Committee on 3/21/05 and House Finance Committee on 3/14/05. Was not acted upon in 2005-2006 legislative session.

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North Dakota

Renewable Energy Development Commission And Hybrid Tax Credit (bill): S.B. 2229 would entitle an individual taxpayer to a credit against tax liability determined of up to $1,500 of the taxpayer's direct costs incurred after December 31, 2004, for the purchase of hydrogen-powered fuel cells or hybrid vehicles. To qualify for the tax credit, the hydrogen fuel cell must be powered from a renewable energy source. Failed to pass Senate 2/7/05.

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New Jersey

New Jersey Turnpike Hybrid HOV:: Governor Jon S. Corzine and The New Jersey Turnpike Authority announced on April 27, 2006 that the New Jersey Turnpike Authority will be allowing Hybrid vehicles to travel in the Turnpike’s High Occupancy Vehicle (HOV) lanes. HOV lanes are located on the Turnpike north- and south-bound between Interchange 11 in Woodbridge and Interchange 14 in Newark and operate on weekdays from 6 a.m. to 9 a.m. northbound and 4 p.m. to 7 p.m. southbound. Vehicles eligible for the exemption include the Ford Escape Hybrid, Mazda Tribute Hybrid, Toyota Prius, Toyota Highlander Hybrid, Honda Insight, Honda Civic Hybrid, Honda Accord Hybrid, and Lexus RX 400h. More information is available on the New Jersey Turnpike website http://www.state.nj.us/turnpike/.

Sales Tax Exemption (bill): S 2074 and AB 3193 exempt sales tax on all vehicles that obtain at least a combined 35mpg, except for diesel vehicles. Introduced in Assembly on 6/1/06 and reported out of Transportation and Public Works Committee 6/15/06. Introduced in Senate on 6/22/06 and referred to Transportation Committee.

Plugin Hybrid Sales Tax Exemption (bill): AB 3721 and S 1921 exempts sales tax on all labor and materials to convert a traditional vehicle into a plugin hybrid vehicle. Introduced in Senate on 6/8/2006 and referred to Environment Committee. Introduced in Assembly on 11/20/06 and referred to Environment and Solid Waste Committee.

Hybrid Income and Business Tax Credit (bill): SB 749 provides a $2,000 credit against gross income tax and the corporation business tax (CBT)for the purchase of qualified hybrid vehicles registered in the state. Introduced 1/10/06 -- referred to Senate Environment Committee. (reintroduction of SB 1920 from last session)

Corporate Business Tax Credit (bill): AB 1678 is a reintroduction of bills AB 417 and SB 771. It would authorize a corporate business tax credit for the purchase of alternative fuel vehicles or technology equal to 15% of the purchase price. Currently in Assembly, Senate Committees. Expired in committee, not enacted.

State Purchase Requirement (bill): AB 3116 would require the state to purchase only vehicles certified as low emission vehicles or alternative fuel vehicles, provided such vehicles exist. Would phase-in a requirement that over a 5-year period all state purchased vehicles be zero emission vehicles. Expired in committee, not enacted.

Sales Tax Exemption (bill): AB 2186; SB 791 would provide a sales tax exemption for the purchase of a super ultra low emission vehicle, a partial zero emission vehicle or a zero emission vehicle certified under Phase II of California's Low Emission Vehicle program, provided the vehicle meets certain fuel efficiency ratings. Currently in Assembly, Senate Committees. Expired in committee, not enacted.

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New Mexico

State Hybrid Excise Tax Exemption: From July 1, 2004 through June 30, 2009, HEVs with an EPA fuel economy rating of at least 27.5 miles per gallon are eligible for a one-time exemption from the motor vehicle excise tax at the time of the issuance of the original certificate of title for the vehicle. (Reference Senate Bill (SB) 86, 2004 and New Mexico Statutes (NMSA) 1978 7-14-6).

Hybrid Free Parking in Albuquerque: Beginning March 31, 2005, a new ordinance allows any hybrid vehicle to park free at any city meter for the duration of that meter. The vehicle must be registered with the City's parking office, located in Room 510 Plaza Del Sol. An identification sticker will be given to the operator, who will then place the sticker on the left rear window of the vehicle. Please be aware, this doesn't mean hybrid vehicles can stay parked at a meter all day. The free parking is only for the duration of the meter where the vehicle is parked. Hybrid vehicles with stickers that are parked longer than the allotted time will be cited. For more information, call The City of Albuquerque's parking office at 505-924-3950. Contact Deborah James: Djames@cabq.gov (505) 768-3036

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Nevada

Hybrid Emissions Inspection Exemption: SB 161 exempts hybrid electric vehicles that are 5 years old or less from the emissions program currently governing Clark and Washoe Counties. Introduced 02/26/07. Approved by the Governor 05/31/07.

Registration and License Fee Exemption (bill): SB 241 would exempt the purchaser or long-term lessee of a hybrid vehicle from the initial license plate, title and registration fees charged by the Department of Motor Vehicles. Introduced 03/08/07 and referred to committee.

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New York

"Clean Pass HOV" Benefit for Hybrids: On 3/1/06, the Long Island Expressway's HOV lanes' occupancy requirement will be waived for qualifying passenger vehicles meeting strict emissions standards, and having a highway fuel economy average of at least 45 miles per gallon. Registered owners of eligible vehicles can apply to the Department of Motor Vehicles to participate in the Clean Pass initiative. Applications will be taken over the phone, by calling the State Department of Motor Vehicles toll free (800) 697-0558. Upon application approval, DMV will mail stickers with instructions to registered vehicle owners.

Hybrid free parking in Westchester: Starting in January 2006, hybrid vehicle owners will be allowed to park for free at two county-owned commuter lots. The cost of a monthly permit is usually $75.00. Parks Commissioner Joe Stout said the county has about 1,100 commuter spaces available at two lots — about 200 of them on Central Avenue in White Plains at the Westchester County Center and the other 900 on Fisher Avenue in North White Plains, near the train station. Roughly 1,000 of the spaces are taken by drivers who buy permits and would be eligible for the new program. The program is dated to expire at the end of 2007. For more information, contact County Legislator Martin Rogowski at mlr1@westchestergov.com.

Hybrid Free Parking and Beach Access in Huntington: Starting Jan. 1, 2006, the Town of Huntington will allow hybrids and alternative-fuel vehicles, affixed with special “Keep Huntington Green” window stickers, free parking at town meters, free access to all Huntington beaches, and free commuter parking at any of the town’s four Long Island Rail Road stations.

Local Authority for Hybrid Incentives (bill): A 1513 would grant Suffolk County the authority to exempt hybrid vehicles sold in the county from sales tax. Introduced 1/9/07 and referred to Ways and Means Committee.

Hybrid HOV Exemption (bill): A 1933/S 1234 would allow hybrid vehicles access to HOV lanes regardless of the number of passengers in the vehicle. A 1933 introduced 1/11/07; S 1234 introduced 1/17/07. Both bills referred to respective Transportation Committees.

Hybrid Free Parking (bill): A 3744 would create a state pilot program to give discounted or free parking for Zero Emission Vehicles, Super Low Emission Vehicles, and hybrid vehicles, as well as give the state department of transportation the authority to establish uniform guidelines for localities wishing to institute such programs. Introduced 1/29/07 and referred to Transportation Committee.

Hybrid Tax Credit (bill): A 4281 (similar to S 4365) would give a $4,000 tax credit on the purchase of a new hybrid vehicle that is either as fuel efficient as the average conventional vehicle in the next lower vehicle class, or 1 1/2 times more fuel efficient than the average conventional vehicle in the same vehicle class. S 4365 would allow qualified hybrid vehicles up to a $2,500 income tax credit. Introduced 1/31/07. Amended and recommitted to Ways and Means Committee 2/27/07.

Free Admission to State Parks & Recreational Facilities (bill): S 3197 would grant free vehicular access to state parks and recreational facilities for qualified hybrid vehicles. Introduced 2/27/07 and referred to Tourism, Recreation, and Sports Development Committee.

Hybrid Sales Tax Exemption (bill): S 3947/A 7626 (similar to A 457/ S 222) would exempt from state sales and compensating use taxes the retail sale of new and used hybrid and certain high-efficiency vehicles. It also grants counties and cities the option to provide such an exemption. Introduced 03/21/07 and passed the Senate 06/06/07. Introduced in the House 06/06/07 and referred to committee.

Hybrid HOV, Tax Credit, and EZ Pass Discount (bill): Governor Pataki proposed three new hybrid incentives in his 2006 budget. They include: a $2,000 personal income tax credit to individuals who purchase new hybrid, alternative flex-fuel vehicles to help defray the higher costs associated with the purchase of these vehicles; a new “Green” E-Z pass, which will provide a 10 percent discount for drivers of fuel-efficient vehicles, such as hybrids that average at least 45 MPG and meet certain EPA emissions standards, and; new initiative will allow cars and other vehicles that average at least 45 mpg and meet certain EPA emissions standards to use HOV lanes in New York City and on the Long Island Expressway -- regardless of the number of occupants in the vehicle (the HOV portion of this initiative has been enacted--see "Clean Pass HOV" section above). These proposals will have to pass the New York legislature in order to take effect.

Nassau County Sales Tax Break and Vehicle Use Fee Waiver (bill): This bill, expected to pass soon, would provide a tax break on the county-portion sales tax on the cost of the hybrid's engine for the 2006-2007 models. The tax break is expected to amount to $200-$250. In addition, hybrid owners will receive a waiver of the County's special motor vehicle use fee of $15 (registration fee).

Nassau County HOV Lane (bill): Legislator Dave Mejias (D-North Massapequa) petitioned state officials and the Department of Transportation to allow for a waiver of the two-passenger rule for use of the HOV lanes in Nassau County, to purchasers of hybrid vehicles.

"Green Car" Tax Incentives (Expired): A04456 works to extend the alternative fuel credits and amend the law to include tax credits for vehicles that are new electric vehicles, clean fuel vehicles, and vehicles that meet the clean vehicle exhaust emission standards the state of California adopted. The current law is set to expire December 31, 2006. Alternative Fuel (Clean Fuel) Vehicle Tax Incentive Program offers tax credits and a tax exemption for purchasing new hybrid electric vehicles (HEVs), alternative fuel vehicles (AFVs), and/or install clean fuel vehicle refueling equipment. Purchasers of qualified HEVs are eligible for a tax credit of up to $3,000, depending on the vehicle's fuel economy. Current production models such as the Toyota Prius and Honda Insight qualify. The maximum value of the incentive is $5,000 for vehicles weighing less than 14,000 pounds (lbs.) gross vehicle weight rating (GVWR). The incremental cost of clean-fuel vehicles is exempt from state sales tax; this exemption expired February 28, 2004. These incentives apply to vehicles and fueling property placed in service by December 31, 2006. For more information, contact the New York State Energy Research & Development Authority (NYSERDA) at 866- NYSERDA, via email at info@nyserda.org, or visit the Web site at www.nyserda.org. (Reference Senate Bill 4523, 2003) A04456 Referred to Ways and Means 1/4/06. Was not voted on in 2006 legislative session.

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Ohio

Hybrid Tax Credit (bill): SB 107 would create a nonrefundable state tax credit for individuals who purchase a new hybrid vehicle. The income tax credit is $3,000 for new hybrid vehicles that achieve a combined EPA fuel economy rating of 40 or more mpg. The tax credit is $2,000 for new hybrid vehicles that achieve less than 40 mpg. Introduced 03/13/07 and referred to committee.

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Oklahoma

Hybrid Tax Credit (bill): HB 2081 would grant a $1,500 tax credit for the purchase of a hybrid vehicle beginning in 2007. Introduced 2/6/06. Passed House 03/13/06. Introduced in Senate 03/14/06 and Referred to Finance Committee 03/20/06. This bill died in session.

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Oregon

Business Tax Credit: A Business Energy Tax Credit is available for the purchase of hybrid electric vehicles (HEVs) and dual-fuel vehicles, the cost of converting vehicles to operate on an alternative fuel, and the cost of constructing alternative fuel refueling stations. The tax credit is 35 percent of the incremental cost of the system or equipment and is taken over five years. For more information, please contact Justin Klure of the Oregon Department of Energy at (503) 373-1581, via email at justin.klure@state.or.us, or visit the Web site at http://oregon.gov/ENERGY/TRANS/hybridcr.shtml.

Residential Tax Credit: A Residential Tax Credit of up to $1,500 is available for the purchase of a HEV or dual-fuel vehicle. A credit is also available for the purchase of an original equipment manufacturer alternative fuel vehicle, and the cost of converting vehicles to operate on an alternative fuel. For more information, contact Deby Davis of the Oregon Department of Energy at (503) 378-8351, via email at deby.s.davis@state.or.us, or visit the Web site at: http://oregon.gov/ENERGY/TRANS/hybridcr.shtml.

Discounted Monthly Parking (private): A joint partnership between the Oregon Environmental Council and City Center parking offers A $15 per month discount on monthly parking for hybrid vehicles that get an estimated 35 miles per gallon or more for either city or highway driving. More details on the program can be found at http://www.citycenterparking.com/Drive_Green/drive_green.htm.

Registration Fee Discount (bill): SB 1021 would reduce the vehicle registration fee to $15 for fuel-efficient vehicles, i.e., noncommercial passenger vehicles, including hybrids, with EPA fuel economy ratings of at least 40 mpg (highway). Introduced 03/13/2007 and referred to committee.

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Pennsylvania

Hybrid Tax Rebate: The PA Department of Environmental Protection now offers an opportunity to Commonwealth residents to apply for a rebate to assist with the incremental cost for the purchase of a new hybrid, bi-fuel, dual-fuel or dedicated alternative fuel vehicle. The rebate amount for calendar year 2006 is $500. The rebate will be offered throughout the calendar year as long as funds are available. Rebates will be offered on a "first come, first served" basis. Rebate applications shall be submitted no later than six months after the purchase.

Update 7/19/06: This program had been reinstated after the Rendell administration has earmarked $3 million in the state budget for the hybrid vehicle rebate program. According to a representative of the Pennsylvania Environmental Protection Agency, anyone who bought a hybrid vehicle during the suspension period can still get a $500 rebate. The state has also made an eligibility distinction between hybrids that use the technology primarily for fuel economy and what they call "mild" or "muscle" hybrids that use the technology for a performance boost.

A completed rebate form must be accompanied by:
(1) A copy of a valid Pennsylvania vehicle registration. The name appearing on the vehicle registration card must appear on the dealer invoice. A Pennsylvania Certificate Of Title For A Vehicle is not acceptable.
(2) A copy of dealer invoice.
(3) Proof of the vehicle purchase. This can be a copy of the front & back of a canceled check, the finance agreement, or a dealer invoice indicating a zero balance due and receipt of payment in full.

For Rebate form and more Qualifications please see: http://www.depweb.state.pa.us/enintech/cwp/view.asp?a=1412&Q=502288&PM=1

Rebate documentation should be submitted to: DEP Grants Center, HEV Rebate, PO Box 8776, Harrisburg, PA 17105-8776. Contact: Cleo Arp-- 717-772-8912 or at carp@state.pa.us.

Hybrid Registration Fee and Emissions Inspection Exemption (bill): HB 564 reenacts an expired rule that exempts hybrid electric, electric and zero-emission vehicles from the annual registration fee for five years. Similar to HB 309, it would also exempt hybrid electric vehicles that achieve an EPA rating of 40 or better mpg (city) from periodic emission inspection requirements. HB 564 was introduced and referred to committee 03/06/07.

Alternative Energy Investment Tax Credits (bill): HB 696 would provide renewable energy investment tax credits for eligible businesses designated alternative fuel/energy enterprises or hybrid vehicle manufacturing enterprises. The credits equal 15 percent of the qualified expense. The total amount of all renewable energy investment tax credits allowed under this act is limited to $15,000,000 per fiscal year. Introduced and referred to committee 03/09/07.

Hybrid Sales and Use Tax Exemption (bill): HB 858/HB 857 would exclude from the sales and use tax the purchase price of hybrid electric vehicles and vehicles with a federal fuel economy rating of at least 45 mpg. This rule would expire 5 years from its effective date. Thereafter, for five years, the exemption would be allowed for hybrid electric vehicles or vehicles with a Federal fuel economy rating of at least 55 mpg. HB563 extends this tax exemption to the purchase of electric and zero emission vehicles. HB 858 also includes provisions that exempt hybrid electric vehicles with EPA fuel economy ratings of 40 mpg or better from emissions inspection requirements. HB 858 was introduced and referred to committee 03/19/2007.

Plug-in Hybrid Electric Vehicle Sales and Use Tax Exemption (bill): HB 691 would exclude from the sales and use tax the sale at retail of batteries and electronic equipment or services used or consumed in converting or manufacturing a plug-in hybrid electric vehicle. This rule would expire three years from its effective date. Introduced and referred to committee 03/09/2007.

Alternative Fuels Incentive Grant Program: The AFIG Program was established in 1992 by the Pennsylvania Energy Office to reduce Pennsylvania's dependence on imported oil and improve air quality through the use of alternative fuels. Eligible applicants are essentially any entity incorporated or registered in Pennsylvania and Pennsylvania residents. After July 1, 2001, qualified projects will receive funding for 20 percent of eligible project costs. Purchasing hybrid-electric vehicles is eligible for the grant program. Applications must be submitted during an open opportunity AND prior to incurring any costs. For more information, please contact Karen Miller of the DEP at (717) 772-3359, via email at karemiller@state.pa.us, or visit their web site. As of 11/18/04, the current grant cycle is closed.

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Rhode Island

Hybrid Sales and Use Tax Exemption (bill): H 5107/S 0126 would exempt the purchase of new hybrid gasoline-electric vehicles from the sales and use tax starting 01/01/07. Introduced 01/18/07 and referred to committee.

Hybrid Tax Credit (bill): H 7724 would establish a personal income tax credit equal to one percent of the purchase price of a new hybrid vehicle (no more than $300) for the tax year beginning on January 1, 2007. Introduced 2/28/06 and referred to the House Finance Committee.

Hybrid Sales Tax Cut (bill): H 7630/S 2546 would reduce the state sales tax for hybrid vehicles by 50 percent beginning July 1, 2006. Introduced 02/16/06 and referred to the Finance Committee.

Sales and Use Tax Exemption (bill): H 5263 would exempt from sales and use taxes, the sale, storage, use or other consumption of motor vehicles and related equipment exclusively powered by a clean alternative fuel, and would further exempt from such taxation the sale of any passenger car utilizing hybrid technology that has an estimated highway gasoline mileage rating of at least forty miles per gallon. Introduced 2/1/05 and referred to the House Finance Committee.

Carbon Fuel Reduction and Air Pollution Control (bill): H 5330 would exempt from the sale and from the storage, use or other consumption in this state of (1) the purchase price paid for a new hybrid gasoline-electric, fuel cell or other hydrogen fueled vehicles; or (2) so much of the purchase price paid for a converted gasoline or diesel-fueled motor vehicle as is allocated to the cost of conversion; and (3) all costs associated with the construction of motor vehicle electric recharging stations or filling stations dispensing hydrogen fuel or other alternative fuels. Introduced 2/3/05 and referred to the House Finance Committee.

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South Carolina

Statewide Hybrid Tax Credit: Consumers buying hybrid vehicles are provided a state tax credit equal to 20 percent of the federal tax credit scheduled to begin in tax year 2006. The state tax credit amount is calculated without regard to the phase-out period limits of Internal Revenue Code Section 30. H 4312 was introduced 01/16/06 and signed into law 6/1/06. Full text of the law can be found here.

Hybrid Sales Tax Rebate: Among its provisions, S 243 (similar to H 3649, the Energy Freedom and Rural Development Act) provides a sales tax rebate for the purchase or lease of fuel efficient vehicles beginning after 06/30/08 and ending before 06/30/13. It provides $300 for the in-state purchase of a hybrid vehicle, an electric vehicle, a plug-in hybrid vehicle, flex-fuel vehicle (FFV) capable of operating on E85, or a vehicle with an EPA city fuel economy rating of 30 mpg or higher. Up to $500 is allowed for the purchase of equipment for conversion of a conventional hybrid electric vehicle to a plug-in hybrid electric vehicle. For taxable years 2007-2010, it allows a $2,000 tax credit against the income tax imposed for the in-state purchase or lease of a plug-in hybrid vehicle. Introduced in Senate 01/09/07. The final bill was vetoed by the governor but overridden by the legislature 06/19/07.

Energy Freedom and Rural Development Act (bill): H 3649 would provide for a sales tax rebate for the purchase of fuel efficient vehicles between July 1, 2007 and July 1, 2010. It would provide $300 for an in-state purchase or lease of a hybrid vehicle, plug-in hybrid vehicle, flex-fuel vehicle (FFV) capable of operating on E85, or a vehicle with an EPA city fuel economy rating of 30 mpg or higher. It would also provide up to $500 for the purchase of equipment for the conversion of a conventional hybrid electric vehicle to a plug-in hybrid electric vehicle. For taxable years 2007-2011, the rule would provide a $2,000 income tax credit for the in-state purchase or lease of a plug-in hybrid electric vehicle. Introduced and referred to committee 03/06/07.

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Tennessee

Hybrid Sales Tax Reduction and HOV exemption (bill): HB 2623 would reduce the sales tax rate for hybrid vehicles to 3.5 percent and permit hybrid vehicles into HOV lanes regardless of the number of occupants. Introduced 2/9/06. Amended in the Senate (SB 2932) to urge TN DOT to study the implementation of exempting low emission and energy-efficient vehicles from HOV requirements. The amended bill was passed by both the House and Senate and signed by the governor 5/12/06.

Hybrid Sales Tax Exemption (bill): HB 64/ SB 463 would exempt hybrid vehicles from the state sales tax starting 07/01/2007 until 06/30/2017. The house bill, as amended, expires the sales tax exemption 06/30/2012. Introduced 01/31/07 and referred to committee.

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Texas

Austin Hybrid Parking Discount: The city's new "Drive Clean--Park Free" program gives city-registered owners of hybrid vehicles that receive an EPA air pollution score of 8 or better $100 pre-paid parking cards to park in any of the city's 3,700 parking meters. Owners must submit an application to the city and receive a bumper sticker showing their participation in the program. Eligible vehicles must be purchased at certified dealerships within the Austin City Limits. For more information go to http://www.ci.austin.tx.us/airquality/parkfree.htm

Austin Plug-In Hybrid Incentive: Program passed, but details are currently in flux: Under consideration is setting aside $1 million and establishing a $1,000.00 rebate for the first 1,000 plug-in hybrids purchased in Austin. A final decision and announcement is expected this fall. The city council passed resolution 050301-48 on March 3rd 2005 and the City Manager along with the Austin Energy are working to promote the program by developing materials, presentations, and community outreach. In addition, together they are setting up the incentives and answering questions from other interested communities.

San Antonio Hybrid Free Parking: In May 2006, San Antonio initiated a year-long pilot project allowing owners of hybrid vehicles who have registered their vehicles with the City and received a display placard free parking at street parking meters. The City ordinance, which took effect immediately after City Council approval on May 4, requires all owners wishing to take advantage of the one-year pilot program to register their hybrid vehicles with the City’s Parking Division located at 243 N. Center Street. Registered hybrid vehicle owners can park at any of the City’s 2,010 street parking meters without charge, including the pilot Pay & Display locations. All drivers must follow street parking meter rules including parking for only the time allotted at the respective meter. Hybrids parked longer than the maximum time may be ticketed for parking at an expired meter unless they pay for additional time. This ordinance will be in effect through May 3, 2007. Initiated by District 3 Councilman Roland Gutierrez, the program is an effort to promote environmental awareness and provide incentives for citizens to purchase hybrid vehicles.

Hybrid HOV Lane and Toll Fee Exemption (bill): Several bills have been introduced (HB 1892, SB 436, and SB 1060) to provide for special hybrid stickers that would allow hybrid vehicles to use the HOV lane regardless of the number of occupants in the vehicle, unless the use would impair the state receipt of federal transit funds. HB 1892 limits the exemption to HOV lanes on toll projects. Under SB 1060, the special hybrid sticker would also exempt hybrid vehicles from paying tolls for the use of toll projects for up to 100 times per year. HB 1892 was introduced 02/27/07, and the final bill, which was vetoed by the governor, did not contain hybrid HOV provisions.

Hybrid Toll Project Fee Discount (bill): Effective September 1, 2007, HB 2836 would require toll project entities to establish discount programs for electronic toll collection customers who drive hybrids. Qualified customers would get a 30 percent discount on the use of the toll project. Introduced 03/14 and referred to committee

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Utah

State Hybrid HOV: Vehicles with clean fuel group license plates are authorized to travel in HOV lanes regardless of the number of occupants. The clean fuel plate may be purchased for $15 from any Motor Vehicle Division office by presenting a clean special fuel certificate. This incentive expires December 31, 2010, as extended by 2005 House Bill 96. For more information, please contact the Utah State Tax Commission's Motor Vehicle Division at (800) DMV-UTAH or (801) 297-7780, or visit the Web site at dmv.utah.gov/licensespecialplates.html. (Reference Utah Code 41-1a-1211, 41-6-53.5, and 63-55-241).

Limited State Tax Credit: The state provides an income tax credit for 50 percent of the incremental cost ($3,000 maximum) of a clean-fuel vehicle built by an original equipment manufacturer and/or an income tax credit for 50 percent of the cost ($2,500 maximum) of the after-market conversion of vehicles purchased after January 1, 2001 and registered in Utah. If not previously used, the tax credit on used vehicles may be claimed. Tax credits are available for businesses and individuals and may be carried forward up to five years. Tax credits are not available for electric hybrids, except the Honda Civic hybrid. Documentation must be provided as described in the Utah state tax form TC-40V. This incentive expires December 31, 2010. For taxable years beginning on or after January 1, 2006, a taxpayer may not claim a tax credit under this section with respect to a hybrid electric vehicle. For more information, please contact Ran Macdonald of the Utah Division of Air Quality via email at rmacdonald@utah.gov. (Reference Utah Code 59-7-605 and 59-10-127 and House Bill 96, 2005).

Salt Lake City Hybrid Free Parking: As of January 2006, Salt Lake City now offers free metered parking for vehicles that get at least an EPA-estimated 50mpg or achieve an EPA pollution score of at least 8 (for vehicles available for sale, as new, in the Utah sales area). Vehicles must display a Utah Clean Fuel special group license plate or a Salt Lake City Green Vehicle parking permit, available from the City’s Transportation Division office, in order to park free at city meters.

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Virginia

State Hybrid HOV: Vehicles registered for clean fuel license plates on or after July 1, 2006 will not be exempt from the HOV-3 requirement on the I-95/395 HOV lanes from 6 to 9 a.m. or from 3:30 to 6 p.m. However, they will be permitted to use all other HOV lanes in Virginia during HOV hours, including I-66 and the Dulles Toll Road in Northern Virginia.

The Department of Motor Vehicles (DMV) has created a new clean special fuel license plate for hybrid vehicles registered July 1, 2006 and after. The new plate will have a distinctly different design to help Virginia State Police enforce the HOV restrictions.

Applications received by DMV for clean special fuels license plates on or before June 30, 2006 will receive the current clean special fuel plate. Applications received on or after July 1, 2006 will be issued the new plate, regardless of the date the vehicle was purchased or special ordered. Vehicle owners with clean special fuel license plates registered before July 1, 2006 may renew or transfer their plates to a newly purchased qualifying vehicle after the new law takes effect and continue to be exempt from HOV requirements until July 1, 2007.

The following hybrids qualify for a clean special fuel license plate: Toyota Prius, Honda Insight, Honda Civic, 2005 Ford Escape Hybrid, 2006 Ford Escape Hybrid, 2006 Toyota Highlander, 2006 Lexus RX400H, 2006 Mercury Mariner, 2006 Honda Accord Hybrid, 2007 Camry Hybrid, 2007 Lexus GS450H, 2007 Ford Escape Hybrid, and the 2007 Mercury Mariner.

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Vermont

Hybrid Purchase and Use Tax Exemption (bill): In his 2007 inaugural address, Governor Jim Douglas proposed a percentage point reduction of the purchase and use tax on hybrid and fuel-efficient vehicles. Fuel-efficient vehicles are defined as vehicles that meet or exceed 30 mpg.

Hybrid Tax Holiday (bill): Among its provisions, S 206 establishes a sales tax holiday on the purchase of hybrid vehicles from June 7, 2007 to June 18, 2007. The bill directs the state natural resources agency to publish a list of qualifying hybrid vehicles for the tax holiday. Introduced and referred to committee 04/04/07.

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Washington

Emissions Inspection Exemption: Effective June 13, 2002, hybrid motor vehicles that obtain a rating by the U.S. Environmental Protection Agency of at least 50 miles per gallon of gas during city driving are also exempt from emissions control inspections. (Reference RCW 46.16.015)

Tax Incentives for Clean Alternative Fuel Vehicles: From 1/1/09-1/1/11, the state use tax and retail sales tax do not apply to sales of new passenger cars, light duty trucks, and medium duty passenger vehicles, which utilize hybrid technology and have an EPA-estimated highway gasoline mileage rating of at least 40 miles per gallon. SB 5916 was signed by the Governor 5/6/05.

Hybrid Internet Sales (bill): HB 3256 would allow automobile manufacturers, internet retailers, and other businesses to engage in the sale of new hybrid vehicles as long as those entities comply with relevant state tax, environmental, and consumer protection laws. Introduced 1/30/06. Referred to Committee on Commerce & Labor. Did not pass before the end of the legislative session.

Hybrid and Alternative Fuel Vehicle HOV Exemption (bill): HB 2931 would enables single-occupant alternative fuel vehicles, including hybrid electric vehicles, that have an EPA highway rating of at least 40 miles per gallon to use HOV lanes. Introduced 01/17/06. Did not pass before the end of the legislative session.

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Wisconsin

Hybrid Tax Credit (bill): AB 174 / SB 90 would create an income and franchise tax credit of up to $1,000 for the amount of sales and use tax paid on the purchase or lease of a hybrid vehicle that has an EPA rating of at least 40 mpg or an EPA rating that is at least 15 percent greater than the same non-hybrid model. The credit may be claimed for sales and use tax paid during the 2007 to 2011 taxable years. The senate bill would extend the credit to the purchase or lease of flex-fuel vehicles that are E85 capable. Introduced and referred to committee 03/12/07.

Hybrid Sales Tax Exemption (bill): AB 546 and SB 252 would create a sales tax exemption of up to $1,000 on the purchase of a hybrid automobile that has an EPA-estimated combined city/highway mileage rating of at least 40 mpg. Referred to House committee on Energy and Utilities and joint survey committee on Tax Exemptions 7/7/05. Failed to pass pursuant to Senate Joint Resolution 5/11/06 – No further action taken. Billed died in session. For more information, contact rep.parisi@legis.state.wi.us .

Hybrid Tax Credit (bill): AB 745 would create a state income and franchise tax credit for the amount of sales and use taxes paid in the taxable year on the purchase of fuel efficient hybrid motor vehicles. The amount of the credit may not exceed an amount equal to $1,000 for each hybrid motor vehicle purchased in the taxable year. Referred to referred to committee on Energy and Utilities and public hearing held 12/20/05. Failed to pass pursuant to Senate Joint Resolution 5/11/06 – No further action taken. Billed died in session.

State Registration Fee Exemption (bill): AB 918 would eliminate the state registration fee for an automobile that has a fuel economy rating of 35 mpg or more or that is electric automobile or a hybrid electric automobile. The sunset date of this provision is 12/31/09. Introduced 01/17/06. Failed to pass pursuant to Senate Joint Resolution 5/11/06 – No further action taken. Bill died in session.

Hybrid Vehicle Tax Credit (bill): SB 620 would create an income and franchise tax credit equal to the amount of sales and use taxes paid on the purchase of a qualified flexible fuel vehicle or a new hybrid motor vehicle with an EPA rating that is greater than 40 mpg. The amount of the credit that a person may claim may not exceed an amount equal to $1,000 for each motor vehicle purchased in the taxable year. Introduced 02/22/06. Failed to pass pursuant to Senate Joint Resolution 5/11/06 – No further action taken. Bill died in session.

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West Virginia

Alternative Motor Vehicles Tax Credit: You can claim a credit for the purchase of a new motor vehicle that runs on an alternative fuel or for the conversion of a traditionally fueled motor vehicle to an alternatively fueled motor vehicle. Alternative fuel types include compressed natural gas, liquefied natural gas, liquefied petroleum, methanol, ethanol, coal-derived liquid fuels, electricity, solar energy and fuel mixtures containing at least 85 percent alcohol. The tax department includes hybrids in this tax credit.

The credit may not exceed the actual cost of converting the vehicle, the actual cost of retrofitting the vehicle or the difference between the cost of the new alternative-fuel motor vehicle and the cost of a comparably equipped vehicle that uses traditional fuel. However, in no event may the maximum total credit allowed exceed the following amounts:

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Wyoming

Fuel Efficient Vehicle Registration (bill): HB 0116 would allow an owner of a vehicle that achieves a fuel economy of 50 mpg or more as published in the Fuel Economy Guide by the United States Department of Energy for the year the vehicle was manufactured to pay only 25 percent of the registration fees. Accordingly, the owner would receive an $11.25 discount from the $15.00 registration fee bringing the payment to $3.75. Did not pass in 2005 legislative session.

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