State-Specific Incentives for EVs or Plug-In Hybrids

To aid the federal government in the plan to get more hybrid vehicles, plug-in electric vehicles (PEVs), and other zero-emission vehicles (ZEVs) on the road, state governments are offering a variety of incentives to attract new buyers.

Some of the common incentives adopted by states to help consumers with the initial costs of purchasing and owning a hybrid or other PEV include:

  • HOV lane access.
  • Financial incentives, to include tax credits and rebates.
  • Vehicle inspection & emissions test exemptions.
  • Parking incentives.
  • Insurance discounts.
  • Utility rate reductions to offset the cost of charging the vehicle at home.

State Incentive Examples

In addition to federal tax credits that can range up to $7,500, most states offer incentives to for hybrid and PEV owners.

Keep in mind that most state incentives expire once a predetermined number of hybrid and PEVs have been sold by each manufacturer. Since these incentives change frequently, be sure to check with your state legislation to see which incentives are still active.

While this list isn't exhaustive, it will provide examples of the major incentives available for some of the participating states.


Current incentives offered for alternative fuel vehicles in the state of California include:

  • Alternative fuel vehicle rebate program.
    • Includes the Clean Vehicle Rebate Project (CVRP), which offers rebates up to $7,500 for qualifying zero-emission and plug-in hybrid vehicles.
  • Drive Clean rebate program.
    • Offers a rebate up to $4,500 for the purchase or lease of eligible natural gas and plug-in electric vehicles in some regions.
  • Insurance discount.
    • Discounted insurance coverage offered by some carriers.
  • PEV utility reductions.
    • Discounts offered by utility companies to offset charging costs, including:
      • Pacific Gas & Electric.
      • Southern California Edison.
      • Los Angeles Department of Water and Power.
      • The Sacramento Municipal Utility District.
      • San Diego Gas & Electric.
  • HOV lane exemptions.
    • Use of HOV lanes regardless of the number of occupants.
    • Use of High Occupancy Toll (HOT) roads free of charge.

Visit Drive Clean for more information on California's green vehicle policies.


Incentives offered by the state of Connecticut include:

  • The Hydrogen and Electric Automobile Purchase Rebate program (CHEAPR).
    • Provides consumers with a rebate up to $9,500 to purchase or lease:
      • Hydrogen fuel cell electric vehicles (FCEV).
      • All-electric vehicles.
      • Plug-in hybrid vehicles.
  • Electric vehicle emissions inspection exemption.
    • Any vehicles powered by electricity are exempt from emissions inspections.
  • Reduced registration fees.
  • Alternative fuel and hybrid vehicle parking.
    • Free parking on all city streets in New Haven.


Available incentives offered by the state of Georgia include:

  • HOV lane exemption.
  • Electric vehicle supply equipment tax credit.
    • Income tax credit available for personal charging equipment.
  • PEV charging rate incentive.
    • Time-of-use incentive offered for customers of Georgia Power.

Resources for State Incentives

To find more incentives for hybrid and plug-in vehicles in your state, the following resources provide up-to-date information:

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