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Check Out State Hybrid Incentives

[States Offering Incentives for the Purchase of Hybrid Vehicles]

State	Offered Incentives
All	Hybrids qualify for a tax deduction up to $2,000 based on year purchased. Check www.fueleconomy.gov under hybrid vehicles for details.
Arizona	Hybrids are allowed to use the HOV lanes regardless of the number of occupants.
California	Public agencies in the Bay Area can apply for funds of up to $2,000 towards the purchase of hybrids. Free parking is available for hybrid vehicles purchased in San Jose after 1/1/03 at downtown public parking facilities and on-street meters throughout the city. In Santa Barbara County, funding of $1000 for up to ten hybrid vehicles is available for Air Pollution Control District residents. For more information visit www.driveclean.cal.gov.
Colorado	A tax credit of up to $4,713 is available for hybrids.
Conneticut	Purchases of HEVs with a fuel economy rating of at least 40 mpg are exempt from sales tax.
Maryland	Available tax credits or rebates expired June 30, 2004, but it may still be possible to receive a tax rebate if the product was purchased within the dates of the Clean Energy Incentives Act.
Maine	A partial sales tax credit of $500 is available for hybrid cars that DO NOT have a comparable vehicle model, and a credit of $300 is available for cars that DO have a comparable gasoline-powered model.
Minnesota	State agencies are required to purchase HEV’s.
Mississippi	State universities are required to purchase HEVs.
New Jersey	Rebate of up to $4,000 is available for light-duty hybrid purchases. Eligible entities include local governments, state colleges and universities, school districts, and governmental authorities.
New Mexico	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.
New York	Purchasers of qualified HEVs are eligible for a tax credit of $2,000 and a sales tax exemption of $3,000.
Oregon	The state offers a Residential Tax Credit (RETC) of up to $1,500 and a Business Energy Tax Credit (BETC) for 35% of the incremental cost of purchasing HEVs.
Pennsylvania	Grants are available that will pay 20% of the purchase of hybrid electric vehicles. Eligible applicants are schools, municipal authorities, counties, cities, corporations, partnerships and nonprofit entities incorporated or registered in the Commonwealth, and Commonwealth residents.
Texas	Funding available for clean vehicle fleets.
Utah	The state provides an income tax credit for businesses and individuals for 50% of the incremental cost (up to $3,000) of a clean-fuel vehicle. A hybrid vehicle qualifies only if the same vehicle model is manufactured without the clean-fuel system and the hybrid vehicle otherwise meets the requirements for a clean fuel vehicle.
Virginia	If a clean fuel vehicle deduction was claimed on the federal tax return, a tax credit equal to 10% of the amount deducted on the federal return may be claimed for the purchase of hybrid vehicles in Virginia.
Washington	Hybrid vehicles with an EPA fuel economy rating of at least 50 mpg during city driving are exempt from emission control inspections.
Wisconsin	The state offers an alternative fuel vehicle tax deduction identical to the federal AFV tax deduction.

Note: Bills have been introduced in the U.S. House and Senate that would let states decide whether or not to allow hybrids in high occupancy vehicle (HOV) lanes. Arizona, California, Connecticut, Florida, Georgia, Massachusetts, and Virginia have passed or are considering such legislation.

Source: US Department of Energy’s Vehicle Buyer's Guide for Consumers