Hybrid Vehicle Incentives

By Deane Barker on May 27, 2005

States Hoping More Will Buy Hybrid Vehicles: Government is rolling out the red carpet to hybird vehicles in the form of incentives to drive them. Anything from tax credits to free parking.

At least 15 states and three cities have incentives in place. Thirteen states are considering such measures.

Oregon offers individuals a state tax credit of as much as $1,500 for buying a hybrid. In Connecticut, cars that get at least 40 mpg are exempt from the 6% sales tax. Colorado hybrid buyers can qualify for a state tax credit of up to $4,713.

The federal government allows a one-time tax deduction for buying a new hybrid: $2,000 this year and $500 in 2006.

Drivers in Los Angeles, Albuquerque and San Jose, Calif., can park free at city meters with their hybrids, although they must still adhere to time limits.