Hybrid and Plug-in Incentives and Rebates – Region by Region
We’re doing our best to track hybrid incentives and rebates across the country. Please verify exact current rulings with appropriate state or city officials.
Arizona Hybrid Incentive
On Feb. 9, 2007, the Arizona Department of Transportation and Former Gov. Janet Napolitano announced that three hybrid models—the Honda Insight, Honda Civic Hybrid, and Toyota Prius—are now permitted to use car pool lanes on freeways in Arizona. The decision clears the way for the estimated 9,000 Toyota Prius, Honda Insight and Honda Civic Hybrid vehicles in Arizona to use the carpool lanes, regardless of the number of passengers. The state plans to issue 10,000 hybrid-vehicle permits on a first-come, first-serve basis. . A special license plate can be ordered online at www.servicearizona.com or by calling (602) 255-0072.
Reduced license fees are available for electric cars and some plug-in hybrids. A tax credit of up to $75 is available to individuals for the installation of EV charging outlets in a house constructed by a taxpayer. (Reference Arizona Revised Statutes 43-1090 and 43-1176)
California Hybrid HOV, Tax, and Parking Incentives
Rebates of up to $5,000 per light-duty vehicle will be available for individuals and business owners who purchase or lease new eligible zero-emission or plug-in vehicles until the funding runs out. Plug-in hybrids qualify for rebates up to $3,000, and electric motorcycles and neighborhood electric vehicles up to $1,500. Certain zero-emission commercial vehicles are eligible for rebates up to $20,000. Vehicles must be purchased or leased after official launch of the program on March 15, 2010.
Sacramento offers free parking to individuals or small businesses certified by the city’s Office of Small Business Development that own or lease EVs with an EV parking pass in designated downtown parking garages and surface lots. Free EV charging is also provided in several parking garages.
Many utilities offer discounted rates for residential vehicle charging during off-peak hours.
Hybrid Car owners who have purchased their hybrids from San Jose dealers are exempt from local parking fees. For eligibility, contact Jason Burton (408) 794-1427, email@example.com.
On February 10, 2009, the Los Angeles City Council voted to end the free metered parking program for alternative fuel vehicles begun in 2002. The City of Los Angeles Department of Transportation (LADOT) will begin citing alternative fuel vehicles parked at expired parking meters starting March 1, 2009. For more details, go to http://ladot.lacity.org/tf_Clean_Air_Vehicles.htm
If your vehicle has the decal affixed to your alternative fuel, hybrid or electric vehicle, the Santa Monica Municipal Code (3.16.120) allows you to park in any metered parking space in the city without charge for the maximum amount of time allowed by that meter. In other words, if you’re at a 2-hour meter, you can park there free for 2 hours—but beyond that, you’re subject to ticketing for overstaying your welcome. Clean Air Vehicle decals are issued by the state.
Colorado Hybrid, Plug-in Hybrid and Electric Car Tax Credit & Rebates
Colorado offers some of the nation’s most generous tax credits for electric cars and plug-in hybrids. In some cased, as much as 85 percent of the cost premium for EVs and PHEVs are available. Many of them are slowly phased out between 2010 and 2016.
The credits are often capped at $6,000. Between 2012 and 2016, the cap on PHEV conversions increases to $7,500.
For details, contact Division of Taxation, Colorado Department of Revenue, (303) 238-7378. http://www.revenue.state.co.us/main/home.asp
Grants are available to local governments for the installation of EV charging stations. Grants are prioritized based on the local government’s commitment to energy efficiency. (Reference Senate Bill 075, 2009 and Colorado Revised Statutes 24-38.5-102 and 24-38.5-103)
The Colorado Department of Revenue offers a tax credit for the purchase of a hybrid electric vehicle (HEV), up to $4,713.00. For more information, including tax credit amounts for Model Year 2002 and 2003 HEVs, please visit www.revenue.state.co.us/fyi/html/income09.html.
The following vehicles are exempt from emissions testing: Toyota Prius and Honda Insight. For questions about other vehicles, contact your county motor vehicle office.
Colorado has passed legislation that would allow the hybrids to use the HOV lanes with single occupants. While a federal waiver has been passed, the Colorado Department of Transportation is analyzing that bill and state for compatibility. 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.
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 City of Manitou Springs offers free parking to hybrid vehicles in the two city parking lots.
Connecticut Sales Tax Exemption
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 the to vehicle. Motorists will still need to obey posted time limits and must park in legal spots. For more information contact DSlap@Newhavenct.net.
Retail electricity customers with one or more grid-integrated electric vehicle (EV) will be credited in kilowatt-hours for energy discharged to the grid from the EV’s battery at the same rate that the customer pays to charge the battery. A grid-integrated EV is defined as a battery-powered motor vehicle that has the ability for two-way power flow between the vehicle and the electric grid as well as communications hardware and software that allow for external control of battery charging and discharging. (Reference Senate Bill 153, 2009)
District of Columbia Hybrid Incentives
The DMV Reform Amendment Act Of 2004 went into effect on April 15, 2005. It exempts owners of hybrids and other alternative fuel vehicles (that get 40 mpg or higher) from excise tax and reduces vehicle registration charges. For more information, contact Elizabeth.Berry@dc.gov or Corey.Buffo@dc.gov.
Florida Hybrid and Plug-in Hybrid Incentives
Inherently low-emission vehicles (ILEVs) and hybrid electric vehicles (HEVs) may be driven in high occupancy vehicle (HOV) lanes at any time regardless of vehicle occupancy. ILEVs and 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.
Electric cars are exempt from most insurance surcharges.
The state is offering $500,000 from the Department of Energy’s stimulus fund to pay a limited number—only about 100—owners of 2004-2009 Priuses to turn their car into a plug-in hybrid. According to some reports, the rebates can only be obtained at luxury car dealer Foreign Affairs Auto in West Palm Beach, which was named the only authorized A123 Systems/Hymotion conversion kit dealer in May 2009.
For more information, please contact the Florida Division of Motor Vehicles at firstname.lastname@example.org or (850) 922-9000.
Georgia Hybrid And EV Incentive
Income tax credits for up to 20 percent of the cost of an electric car—maximum of $5,000—or 10 percent (with a max of $2,500) for a car conversion to use an “alternative fuel” including electricity.
An income tax credit is available to any eligible business enterprise for the purchase or lease of each EV charger that is located in the state. The amount of the credit is 10% of the cost of the charger or $2,500, whichever is less. (Reference Georgia Code 48-7-40.16)
Contact: James Udi, Environmental Specialist, Georgia Environmental Protection Division, email@example.com.
Hybrid electric vehicles (HEVs) shall be authorized to use high occupancy vehicle lanes, regardless of the number of passengers if the U.S. Congress or U.S. Department of Transportation approve such authorization through legislative or regulatory action. (Reference Georgia Code Section 32-9-4) The term ‘alternative fuel vehicle’ is expanded to include HEVs. A HEV is defined as a motor vehicle, which draws propulsion energy from onboard sources of stored energy, which include an internal combustion or heat engine using combustible fuel and a rechargeable energy storage system. HEVs must also meet federal Clean Air Act and California emissions standards and must have a fuel economy that is 1.5 times the Model Year 2002 EPA composite class average for the same vehicle class.
Illinois Hybrid Tax Rebate
Due to reaching its $2 million cap, the Green Rewards program was suspended on May 15, 2008. Illinois drivers has been eligible for a $1,000 rebate with the purchase of a new hybrid or other fuel efficient vehicle. Get the details.
The Illinois Alternate Fuels Rebate Program (Rebate Program) provides rebates for 80% of the incremental cost of purchasing an AFV or converting a vehicle to operate on an alternative fuel. The maximum amount of each rebate is $4,000. Eligible vehicles include natural gas, propane, and electric. Gasoline-electric hybrid vehicles are not eligible.
Louisiana Tax Credit
The state offers an income tax credit worth 50 percent of the cost premium of an electric car, plug-in hybrid, or converting a vehicle. A taxpayer may instead take a tax credit worth 10% of the cost of the motor vehicle or up to $3,000, whichever is less. Similar credits are available for charging equipment installation. (Reference House Bill 110, 2009, and Louisiana Revised Statutes 47:6035)
Maine Hybrid Tax Reduction
Maine’s partial sales tax for hybrids expired on January 1, 2006. For questions, contact Melissa Morrill at Maine Department of Environmental Protection.
Maryland Hybrid and EV Discounts
H.B. 61 exempts qualified hybrid electric vehicles from motor vehicle emissions testing requirements.
A tax credit is allowed against the excise tax imposed for the purchase of qualified hybrids and EVs. For qualified EVs, the tax credit may not exceed $2,000. A qualified EV must meet the definition set forth in the Internal Revenue Code. (Reference Maryland Statutes, Transportation Code 13-815)
Owners of hybrid cars will get discounts on parking at the 15 city-owned parking garages in Baltimore. The plan cuts between 32- and 85 dollars from the monthly fees for owners of the fuel-efficient vehicles. Baltimore will limit participation to 200 vehicles and the program will apply only to monthly, contract parking. Drivers of the three most fuel-efficient models can apply for a decal that will let them park in designated spots in the city’s garages.
Massachusetts Hybrid Tax Cut
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. Obtain the grant application by visiting www.williamstown.net.
Michigan Hybrid Parking Perk
The City of Ferndale 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. To find out if your car qualifies, call the City Assessor at (248) 546-2372.
A tax credit of $500 is available for an electric car conversion.
Nevada Hybrid Emissions Exemption
Hybrid cars that are less than five years old are exempt from the emissions program currently governing Clark and Washoe Counties.
New Mexico Hybrid Sales Tax Exemption & Parking Perk
Hybrid electric vehicles (HEVs) with a U.S. Environmental Protection Agency (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 and state sales tax.
In Albuquerque, hybrid cars are exempt from parking meter fees. For more information, visit: http://www.cabq.gov/parking/HybridPermits.html. Or call The City of Albuquerque’s parking office at 505-924-3950. Contact Deborah James: Djames@cabq.gov (505) 768-3036
New Jersey Hybrid HOV Use–and EV Incentives
On May 4, 2006, the New Jersey Turnpike Authority, which administers the turnpike and the Garden State Parkway, voted to allow hybrid vehicles to use the high occupancy vehicles lanes on the turnpike.The ruling’s effect may be limited since the turnpike, which sees an average of 700,000 drivers daily, has HOV lanes only between Interchange 11 in Woodbridge and Interchange 14 in Newark going both northbound and southbound. The Garden State Parkway does not have car pool lanes. Decals are not required. Turnpike Authority officials said state police do not anticipate any problems identifying which cars are hybrids.
Zero-emissions vehicles sold, rented, or leased in New Jersey are exempt from state sales and use tax. This exemption is not applicable to partial zero emission vehicles, including hybrid electric vehicles. ZEVs are defined as vehicles certified as such by the California Air Resources Board. For a list of qualifying ZEVs, see the New Jersey Department of the Treasury Web site. (Reference New Jersey Statutes 54:32B-8.55)
New York Hybrid HOV Use
New York’s Alternative Fuel (Clean Fuel) Vehicle Tax Incentive Program, which offered tax credits and a tax exemption for purchasing new hybrid electric vehicles (HEVs), have expired. In Jan. 2006, Governor Pataki proposed new incentives. For more information, please contact the New York State Energy Research & Development Authority (NYSERDA) at 866- NYSERDA, via email at firstname.lastname@example.org, or visit the web site at www.nyserda.org.
Clean Pass is a program allowing eligible low-emission, energy-efficient vehicles to use the 40-mile Long Island Expressway High Occupancy Vehicle (LIE/HOV). Clean Pass is a multi-agency pilot program partnering three New York State agencies, the State Department of Transportation (NYSDOT), the State Department of Motor Vehicles (DMV), and State Department of Environmental Conservation (DEC). The number to inquire about a Clean Pass sticker is (518) 486-9786, Option 7.
Hybrid owners in Westchester County are allowed to park for free at two county-owned commuter lots. The cost of a monthly permit is usually $75.00. For more information, contact County Legislator Martin Rogowski at email@example.com.
For tax years beginning before January 1, 2015, Oklahoma provides a one-time income tax credit for 50 percent of the cost of converting a vehicle to operate on an alternative fuel such as electricity, or for 50 percent of the incremental cost of purchasing a new electric-drive vehicle. The state also provides a tax credit for 10 percent of the total vehicle cost, up to $1,500, if the incremental cost of the vehicle cannot be determined. For qualified electric vehicles propelled by electricity only, the credit is based on the full purchase price of the vehicle. For vehicles equipped with an internal combustion engine, such as a hybrid electric vehicle, the credit is based on the portion of the motor vehicle, which is attributable to the propulsion of the vehicle, by electricity. For more information, see Oklahoma Income Tax Form 511CR (PDF 219 KB). (Reference House Bill 1949, 2009, and Oklahoma Statutes 68-2357.22)
Oregon Tax Credit
A Residential Tax Credit of up to $1,500 is available for the purchase of a HEV or dual-fuel vehicle. For more information, contact Deby Davis of the Oregon Department of Energy at (503) 378-8351, via email at firstname.lastname@example.org. You can also find detailed information about qualifying vehicles at: http://egov.oregon.gov/ENERGY/TRANS/hybridcr.shtml.
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% of the incremental cost of the system or equipment and is taken over five years.
Pennsylvania Hybrid Tax Rebate
Pennsylvania’s Department of Environmental Protection will offer 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 is $500. The rebate will be offered 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.
A press release issued by the Commonwealth of Pennsylvania on March 9, 2006: The program has been so successful, the state is expect to run out of rebate money sometime in April. DEP Secretary Kathleen A. McGinty said the commonwealth already has awarded more than $1.3 million in rebates from the $1.5 million allotted for the program for the 2005-06 fiscal year. Another $1 million will become available for the fiscal year beginning July 1. Because buyers have six months from the time of the purchase to apply for the rebates, people buying hybrid electric and alternative fuel vehicles after the current funding runs out still will be able to apply for rebates when the programs reopens.
For more information, visit www.dep.state.pa.us.
South Carolina Sales 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 South Carolina Energy Freedom and Rural Development Act provides a sales tax rebate for the purchase or lease of fuel efficient vehicles beginning after June 30, 2008 and ending before June 30, 2013. 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.
Tennessee Hybrid Sales Tax Cut
There is no reduced sales tax on hybrids in the state of Tennessee. Although the bill was proposed, it did not pass the General Assembly. Not all hybrids are allowed to operate in HOV lanes without having to satisfy the two-passenger minimum requirement. Only “inherently
low-emission vehicles” and “low-emission and energy efficient vehicles” as determined by the EPA meet this criteria. View these autos and find more information about our Smart Pass program online at http://www.tennessee.gov/revenue/vehicle/hovpass.htm.
Texas Clean Car Parking Incentive
The City of Austin’s “Drive Clean–Park Free” program gives city-registered owners of hybrid vehicles that receive an EPA air pollution score of 8 or better a $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.
The City of San Antonio allows owners of hybrid vehicles to park for free at street parking meters. A City ordinance, which took effect immediately after City Council approval on May 4, 2006, 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 such as parking for only the time allotted at the respective meter. For more information, call (210) 207-8266.
Utah Clean Fuel Tax Credits and Use of Carpool Lanes
The state provides an income tax credit up to $750 for a plug-in vehicle and up to $2,500 for a conversion. For details, contact Mat Carlile, Energy Program Coordinator, Utah Department of Environmental Quality, Division of Air Quality, email@example.com.
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: dmv.utah.gov/licensespecialplates.html.
The state’s tax credit for “electric-hybrid” is no longer active.
Salt Lake City grants free metered parking to vehicles powered solely by an alternative fuel (i.e. propane, compressed natural gas, or electricity) or that are “top performers” in regards to city fuel economy or emissions. All available hybrids qualify. For details, including information about “Green Vehicle” parking permits, visit: http://www.slcgov.com/transportation/parking/green.htm
Virginia Clean Fuel Express Lanes
In the 2011 legislative session, the Virginia General Assembly added a third class of clean fuel license plate. These license plates designate a car as able to use the various HOV lanes in Virginia. The first class was only available until 1 July 2006 and gave access to all HOV; the second and current one gives access to all but the I-96 / I-395 corridor. The third and newest license goes into effect 1 July 2011 and replaces the current limited plate with an even more limited one. In effect, in order to use the HOV lanes on I-66, you must have a class 1 or class 2 clean fuel plate, the class 3 won’t be able to use the HOV on I-95 / I-395 or I-66. This means anyone interested in buying an electric car in the Commonwealth of Virginia had best do this before 1 July 2011 to have access to I-66 HOV; no electric cars will qualify for class 1 or class 2
plates because no electric cars (besides the original Smart ED electric car) will have been made available in Virginia before 1 July 2011.
Washington High-MPG Sales Tax Exemption
Effective January 1, 2009 through until January 1, 2011, state sales taxes 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 forty miles per gallon. “Hybrid technology” is defined as propulsion units powered by both electricity and gasoline.
Electric, CNG, and LPG vehicles are exempt from emission control inspections. 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 these inspections.
Electric vehicles are exempt from the 6.5 percent sales tax and plug-in hybrids are exempt from the 0.3% motor vehicle sales tax. Tax exemptions also apply to charging station equipment and service. These tax exemptions expire on January 1, 2011.
West Virginia Alternative Fuel Tax Credit
The State of West Virginia allows 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. Print out the necessary tax form. For more information see: http://www.state.wv.us/taxdiv/
Quebec Hybrid Tax Rebate
Quebec’s most recent financial budget, passed in Mar. 2006, includes a new tax rebate of up to $1,000 (CAD) for people who buy or lease hybrid vehicles. To be eligible for the rebate, the vehicle must use no more than six litres of gas per 100 kilometres (roughly equivalent to 40 mpg).
British Columbia, Ontario or Prince Edward Island – Hybrid Sales Tax Rebate
Residents of these three provinces are eligible for partial sales tax rebate on all hybrid vehicles. In British Columbia, residents can get a rebate of up to $2,000, in Ontario up to $1,000 and in PEI up to $3,000. These rebate are apparently for all hybrids, regardless of make or model. Check with regional tax authorities or a tax professional.
Manitoba Tax Rebate
The provincial government of Manitoba which will give $2,000 cash to anyone who buys or leases an eligible hybrid car between Nov. 15, 2006 and Nov. 15, 2008.