A Guide to Hybrid Incentives and Laws

Depending on when you bought a hybrid or other green car, which model you purchased, and how many deductions you are already taking, you might be entitled to a significant tax credit. We’ll continue to track federal, local and corporate hybrid incentives, and share it in these pages. You'll also find the latest government proposals and plans.

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Top news inIncentives & Laws

US Accountability Office: Plug-in Car Economics Are Uncertain: When former President Bush signed Executive Order 13423 in January 2007, he required federal fleet managers to buy plug-in vehicles as soon as possible. The exact language of the directive was as soon as plug-in cars “become commercially available and can be purchased at a cost reasonably comparable to conventional vehicles based on life-cycle costs.” But getting clarity on that cost comparison has proven to be tricky business.
$8 Billion in Loans Goes to Ford, Nissan & Tesla: Department of Energy Secretary Chu announced the first round of $8 billion in low-cost loans from its $25 billion Advanced Technology Vehicles Manufacturing Loan Program. The loans are going to Ford, Nissan and Tesla. This funding was set aside not by President Obama as a bailout to keep auto companies afloat—but in September 2008 by former President Bush in order to retool plants to build more advanced technology vehicles.
What Would Chavez Drive?: After GM filed for bankruptcy and the US government took a 60 percent ownership position of the troubled company, Venezuelan President Hugo Chavez quipped, "Hey, Obama has just nationalized nothing more and nothing less than General Motors. Comrade Obama! Fidel, careful or we are going to end up to his right.” Chavez’s provocative statement wasn’t the first time that critics have accused the Obama Administration of playing a heavy hand with the auto industry.
Chrysler’s Electric Vehicles Depend on Government Funds: Three Indiana pension funds today asked the Supreme Court to stop Chrysler's sale to Fiat, arguing (among other things) that the US Treasury Department overstepped its legal authority by using bailout funds for Chrysler when Congress intended the money for banks. Those same bailout funds are also the key to Chrysler’s plans for plug-in hybrids and electric cars.
Corporate Incentives for Hybrids and Alternative Cars: Do you think that only environmentalists or eco-conscious legislators want to promote smart transportation choices? Think again. A growing number of business leaders are seeing the connection between employees’ driving habits and the well being of their companies and communities.
Will the Chevy Volt Survive Bankruptcy?: In the direct aftermath of General Motors filing for Chapter 11 this morning, the fate of the Chevy Volt remains unclear. Does it make sense to save an expensive future product that will lose money for many years? How many will be made? How much will it cost? How will it be marketed? When is it expected to turn a profit?
Game Over for Gas Guzzling, With New Auto Efficiency Rules: President Barack Obama announced today that his administration will enact dramatically tougher fuel economy standards and the first ever greenhouse gas pollution mandates for cars. The proposal will require carmakers to reach an average of 27.3 mpg by 2011, and 35.5 mpg by 2016—four years faster than previously scheduled. The increase will mean a radical change to product lineups—effectively requiring the discontinuation of the worst gas-guzzlers and the introduction of a wide array of fuel-saving technologies in vehicles of all sizes.
Nonsensical Tax Credits Benefit Mercedes Diesel SUVs: One of the nation’s largest consumer incentives for energy-efficient cars—a tax credit of $1,800—goes to buyers of a $60,000-plus hulking diesel SUV that gets 17 mpg in the city. The Mercedes GL320 Bluetec and two other so-called “clean diesel” SUVs from Mercedes benefit from the tax credits. Meanwhile, today’s most efficient hybrids—such as the 50-mpg Toyota Prius and the 41-mpg Honda Insight, selling for $22,000 and $19,800 respectively—are not eligible for any federal tax incentives.
Obama Orders 2,500 Hybrids: In a win-win move for both the environment and the US auto industry, President Barack Obama announced on Thursday that the US General Services Administration would order 17,600 fuel-efficient vehicles from GM, Ford, and Chrysler by June 1. The first step will be an order for 2,500 hybrid sedans by Tax Day.
GM Marketing Czar Turns Toward Efficiency: One day after the US government rejected GM’s turnaround plan, Mark LaNeve, the company’s vice president of sales, service, and marketing for North America, spoke with Eddie Alterman, editor-in-chief of Car and Driver magazine. For most of the discussion, LaNeve and Alterman talked about restoring consumer confidence and the future of GM brands. But finally LaNeve said that GM needs to turn away from high-performance and toward fuel-efficiency to send "a better message" to key stakeholders."