Car News

More States Ending Hybrid Tax Credits

RELATED READING
RESEARCH BY MAKE
Toyota cars, trucks and SUVs Ford cars, trucks and SUVs Honda cars, trucks and SUVs Chevrolet cars, trucks and SUVs Jeep cars, trucks and SUVs Nissan cars, trucks and SUVs Lexus cars, trucks and SUVs Volkswagen cars, trucks and SUVs BMW cars, trucks and SUVs
Acura cars, trucks and SUVs Alfa Romeo cars, trucks and SUVs AMC cars, trucks and SUVs Aston Martin cars, trucks and SUVs Audi cars, trucks and SUVs Bentley cars, trucks and SUVs BMW cars, trucks and SUVs Bugatti cars, trucks and SUVs Buick cars, trucks and SUVs Cadillac cars, trucks and SUVs Chevrolet cars, trucks and SUVs Chrysler cars, trucks and SUVs Daewoo cars, trucks and SUVs Datsun cars, trucks and SUVs DeLorean cars, trucks and SUVs Dodge cars, trucks and SUVs Eagle cars, trucks and SUVs Ferrari cars, trucks and SUVs FIAT cars, trucks and SUVs Fisker cars, trucks and SUVs Ford cars, trucks and SUVs Freightliner cars, trucks and SUVs Genesis cars, trucks and SUVs Geo cars, trucks and SUVs GMC cars, trucks and SUVs Honda cars, trucks and SUVs HUMMER cars, trucks and SUVs Hyundai cars, trucks and SUVs INFINITI cars, trucks and SUVs Isuzu cars, trucks and SUVs Jaguar cars, trucks and SUVs Jeep cars, trucks and SUVs Kia cars, trucks and SUVs Lamborghini cars, trucks and SUVs Land Rover cars, trucks and SUVs Lexus cars, trucks and SUVs Lincoln cars, trucks and SUVs Lotus cars, trucks and SUVs Maserati cars, trucks and SUVs Maybach cars, trucks and SUVs Mazda cars, trucks and SUVs McLaren cars, trucks and SUVs Mercedes-Benz cars, trucks and SUVs Mercury cars, trucks and SUVs MINI cars, trucks and SUVs Mitsubishi cars, trucks and SUVs Nissan cars, trucks and SUVs Oldsmobile cars, trucks and SUVs Plymouth cars, trucks and SUVs Pontiac cars, trucks and SUVs Porsche cars, trucks and SUVs RAM cars, trucks and SUVs Rolls-Royce cars, trucks and SUVs Saab cars, trucks and SUVs Saturn cars, trucks and SUVs Scion cars, trucks and SUVs smart cars, trucks and SUVs SRT cars, trucks and SUVs Subaru cars, trucks and SUVs Suzuki cars, trucks and SUVs Tesla cars, trucks and SUVs Toyota cars, trucks and SUVs Volkswagen cars, trucks and SUVs Volvo cars, trucks and SUVs Yugo cars, trucks and SUVs
RESEARCH BY STYLE
AWD/4WD
Commercial
Convertible
Coupe
Hatchback
Hybrid/Electric
Luxury
Sedan
SUV/Crossover
Truck
Van/Minivan
Wagon

author photo by Jeffrey Archer October 2011

With a growing number of electric and alternative fuel vehicles flooding the market, buyers are becoming increasingly interested in the new technology - and the tax breaks that accompany it. But as more consumers take advantage of the incentives, revenue-strapped states are starting to re-think them, letting the rebates expire or - in some cases - cancelling them altogether.

That's exactly what happened in Connecticut, where an early-1990s law exempting alternative fuel vehicles from the state's six percent sales tax was recently repealed. While little more than a novelty when originally enacted, the law exempted hybrids achieving more than 40 miles per gallon - a group that grew to include popular models like the Toyota Prius and Honda Insight, translating to more than $2 million annually in lost revenue by 2009. For a state facing a $3.7 billion budget deficit, continuing the tax credit was no longer an option.

In New Jersey, lawmakers are facing a similar situation. Although many state legislators agree that a proposed sales tax exemption for vehicles that get 40-plus miles per gallon and energy-efficient appliances is a good idea, few can stomach the thought of giving up $79 million in revenue - the bill's projected cost - considering the state's $8 billion deficit. As a result, the state isn't expected to act on the measure this year.

"Good bills, wrong timing," Republican state Sen. Tony Bucco told USA Today. "These things are great in a good economy. But when we're down on revenues, it's a little difficult to give out additional credits and rebates."

Other states apparently agree. In Maine, a partial sales tax credit on hybrids expired in 2006 and wasn't renewed. A Washington tax credit exempting electric vehicles and plug-in hybrids expired without renewal earlier this year, and a South Carolina tax credit for $2,000 on plug-in hybrids ended in 2010. Even cities are cracking down, with cash-strapped Los Angeles finally ending a program that provided free, metered parking to alternative fuel vehicles in early 2009.

While several states still offer tax credits on hybrids and electric vehicles, it's likely they won't last forever. So if you're in the market for an eco-friendly car, our advice is to research your state's laws, and - if applicable - act quickly before the tax incentives disappear.

This image is a stock photo and is not an exact representation of any vehicle offered for sale. Advertised vehicles of this model may have styling, trim levels, colors and optional equipment that differ from the stock photo.
More States Ending Hybrid Tax Credits - Autotrader