Government Incentives for Driving a Hybrid

Hybrid cars combine the clean energy of an electrical motor with an internal combustion engine. The advantages of hybrid vehicles include the fact that they emit less greenhouse gases than gas-powered vehicles and the fact that they balance the use of the electrical energy and the gasoline engine, a major plus in these times when alternative energy is a major concern. There several incentives to purchase hybrid vehicles both at the federal and state levels.

Federal Plug-in Hybrid Conversion Tax Credit

This is a tax credit provided under the American Recovery and Reinvestment Act of 2009. It provides for a tax credit for plug-in electric drive conversion kits. The value of the credit is 10 percent of of the cost for converting a vehicle to a qualified, plug-in electric motor vehicle. This electric motor vehicle has to be placed in service after February 17, 2009. The maximum amount payable under the credit is $4,000 and will not apply to conversions made after December 31, 2011. This credit can be applied even if the taxpayer claimed a hybrid vehicle credit for the same vehicle in a previous year.

Nevada and New Jersey

In Nevada, the Hybrid Taxi Use Extension is a government incentive that allows for the operation of a hybrid car as a taxicab for an extra 24 months beyond the current limits. Before the new law, a new vehicle could be operated as a taxicab for 67 months, while a used vehicle could be operated for 55 months as a taxicab.

The New Jersey Turnpike Authority allows hybrid vehicles to travel in the High Occupancy Vehicle (HOV) lanes located in the Turnpike. This permission is restricted to between 4 p.m. to 7 p.m. southbound and 6 a.m. to 9 a.m. northbound on weekdays. Eligible vehicles include the Honda Accord Hybrid, Toyota Highlander Hybrid, Mazda Tribute Hybrid and the Ford Escape Hybrid.

Baltimore Monthly Parking Discount

The city of Baltimore offers discounted parking for hybrid vehicles at 15 locations in different parts of the city. This incentive applies to monthly contract parking, with a number of first-floor spots set aside for hybrids.

The Hybrid HOV: HB 674/SB602 is a bill signed into law by Governor Martin 0'Malley-Brown of Maryland on May 20, 2010. This bill will run from October 01, 2010 through September 30, 2013. The purpose of the bill is to authorize plug-in vehicles that have a state permit to use HOV lanes irrespective of the number of occupants. The price of a state-administered permit is fixed at no more than $20.