Economic
and Other Breaking News
Tax Breaks on Hybrid Cars
Buyers of a new Prius in 2004 and 2005 may be eligible for
a $2,000 IRS tax deduction. In addition some states are offering
incentives for hybrid car owners and more are coming on board
all the time, so be sure to check with your state's offices.
Colorado grants an additional state tax credit. Connecticut
offers a sales tax exemption for buyers of hybrid cars with
an EPA rating of at least 40 mpg. Maine has a partial sales
tax exemption for buyers of a new Prius equal to approximately
$500. New Mexico allows a one-time exemption of the excise
tax equal to 3% of the purchase price on hybrid cars with
an EPA rating of at least 27.5 mpg. Oregon has a state income
tax credit up to $1,500 for buyers of qualifying hybrid cars.
Pennsylvania grants funds to partially offset the cost of
new hybrid cars under certain conditions. Maryland and Virginia
exempt hybrid cars from mandatory emissions testing.
It's nice to know that state and local governments offer
consumer incentives to reward good choices to hybrid cars
owners for wanting cleaner air and energy conservation.
HOV Lanes
Several news articles have touted that states are allowing
single-occupancy driving of hybrid cars in HOV (high-occupancy
vehicle) carpool lanes. However, only Virginia has established
this policy thus far. Although state and local governments
may be setting their own highway rules, the federal government
provides a large portion of highway funds and therefore can
establish its own regulations. Federal policy on HOV lanes
does permit single-occupancy HOV driving for natural gas and
battery electric vehicles only, as of early 2005, so hybrid
electric vehicles to not qualify yet. Several states, such
as Arizona, California, Utah and Florida have passed single-occupancy
HOV legislation and are waiting for the federal government
to approve their local laws. Although the legislation has
been written, the decisions are still pending.
Free Parking
Some cities have joined state and federal governments to encourage
the use of hybrid cars. Los Angeles, California has passed
a trial ruling that allows free meter parking for hybrids
through March 2005. The policy will be reviewed for renewal
in April. San Jose, California has had a similar free meter
parking rule since 2003, however it expires soon and may be
extended. Albuquerque, New Mexico recently passed an ordinance
for free meter parking downtown. In all these cases, posted
limits on parking must be followed.
Always check with your state government to make sure that
programs are in effect, as regulations can change without
notice. And get on their mailing list to be notified of new
programs coming on board, or check their Website periodically.
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