Green Driver State Incentives in Georgia
Saving the planet also means saving money thanks to financial perks like federal and Georgia tax incentives. Read on to find out how driving a fuel-efficient vehicle—such as a hybrid, electric car (EV) or alternative fuel vehicle (AFV)—can help you cut back on global warming and what you spend on your vehicle.
Know that Georgia's green driver incentives and related laws might change as GA pays even more attention to environmental matters. Two additional resources worth keeping pace with include your local Motor Vehicle Division branch and the Alternative Fuels Data Center.
Georgia Registration Emissions Testing Exemptions for Fuel Efficient Vehicles
- New vehicles (3 model years old or newer).
- Dedicated alternative fuel vehicles (AFVs)*
*The State considers AFVs to be vehicles that run solely on alternative fuel and do not run on regular gasoline. This includes vehicles that operate using:
- Battery electricity.
- Natural gas.
Check the online guide for AFVs eligible for a GA Alternative Fuel Tag.
Please note that Georgia does not consider hybrid vehicles to be AFVs; so, the following hybrid examples must undergo an emissions inspection:
- Ford Escape.
- Honda Civic, Honda Accord, or Honda Insight
- Toyota Prius or Toyota Highlander.
This is not an exhaustive list. Consult your local Motor Vehicle Divisionbranch office for specifics.
If your vehicle has the ability to run on regular gasoline, it must undergo a smog and emissions test—including bi-fuel and flexible fuel vehicles. For a full list of applicable vehicles, consult our GA Smog and Emissions Checks page or the Georgia Clean Air Force FAQs page.
To find the nearest emissions testing center, scroll down to our locator widget at the bottom of the page.
High Occupancy Vehicle (HOV) Lane Exemption for Alternative Fuel Vehicles
The Georgia Motor Vehicle Division allows alternative fuel vehicles to use high occupancy vehicle (HOV) lanes—regardless of number of passengers—when displaying an GA alternative fuel tag. Look online to determine if your vehicle falls under the list of eligible AFVs. For information about alternative fuel vehicle license plates, including how to order one, required fees, and an example image, visit the Georgia Department of Revenue website .
Auto Insurance Discounts for Eco-Friendly Driving and Green Vehicles
Some Georgia auto insurance providers offer insurance discounts for having green driving habits and/or driving a fuel-efficient vehicle. Consult your car insurance company about potential green vehicle discounts such as:
- Hybrid auto discounts.
- Alternative fuel vehicle (AFV) discounts.
- Economy car discounts.
- Low-mileage discounts.
- Pay as you drive discounts.
As an example you may qualify to receive up to a 10% discount on car insurance for having a hybrid car. Low mileage can also get you a discount.
If your current Georgia auto insurance carrier doesn't reward eco-friendly driving, find one that does. Compare auto insurance rates online and save some green for going green.
Georgia Tax Incentives for Green Drivers
Georgia offers tax incentives to the following GA taxpayers:
- Alternative Fuel Vehicle (AFV) and Vehicle Conversion Tax Credit
- Low Emission Vehicle (LEV) and Zero Emission Vehicle (ZEV) Tax Credit.
- Emissions Reduction Tax Credit.
- Alternative Fuel and Advanced Vehicle Job Creation Tax Credit.
- Electric Vehicle Charger Tax Credit.
- Commercial Alternative Fuel Vehicle (AFV) Tax Credit
If you have questions navigating these incentives when it comes time to file, consider consulting your preferred tax preparer or your local IRS Taxpayer Assistance Center.
Alternative Fuel Vehicle (AFV) and Vehicle Conversion Tax Credit
The AFV tax credit ended on July 1st 2015. If you purchased or leased your vehicle prior to this date as an individual, you can still file to get get an income tax credit of 10% of your vehicle cost, up to $2,500, if you:
- Purchase or lease a new, dedicated AFV.
- Convert your vehicle to operate solely on alternative fuel* using a kit certified by the manufacturer to meet EPA low emission vehicle (LEV) standards. Your gasoline or diesel fuel system must be disabled or removed completely.
Your vehicle must meet smog and emission standards (see above) and any portion not used during the year you bought or converted the vehicle can be carried over for 5 years.
* Georgia defines alternative fuel as:
- Natural gas.
- Coal-derived liquid fuels.
This includes any other fuels other than alcohol derived from biological materials. Hybrid vehicles do not qualify.
For more information, contact the Georgia Environmental Protection Division at (404) 363-7046.
Low Emission Vehicle (LEV) and Zero Emission Vehicle (ZEV) Tax Credit
The tax program was discontinued. Only those who purchased or leased on or before June 30, 2015 qualify for the tax credit . If you purchased or leased a vehicle on or before this date you can get a Georgia income tax credit of:
- 10% of the vehicle cost, up to $2,500 if you purchase or lease a low emission vehicle (LEV).
- 20% of the vehicle cost, up to $5,000, if you purchase or lease a zero emission vehicle (ZEV).
Any portion not used during the year you bought or leased the vehicle can be carried over for up to 5 years.
NOTE: Georgia defines ZEVs as vehicles that put out absolutely no tailpipe and evaporative emissions. ZEVs include electric cars but not low-speed vehicles. Hybrid, diesel, and gasoline vehicles do not apply to this tax credit.
Emissions Reduction Tax Credit
As an individual, you can get an income tax credit equal to 10% of equipment and installation costs if you install diesel particulate emissions reduction technology equipment at a truckstop, depot, or other facility. The tax credit is good for the year the equipment is installed.
For more information, contact the Georgia Regional Transportation Authority at (404) 893-6100.
Alternative Fuel and Advanced Vehicle Job Creation Tax Credit
This tax credit is for businesses* that create alternative energy products for biofuel, battery, and electric vehicles. This is an annual tax credit for 5 years and the amount depends on the:
- Number of eligible full-time employee jobs.
- The county in which the business is located and how that county's employment rates and income levels ranks.
* Retail businesses aren't eligible.
Learn more at the Alternative Fuels Data Center (AFDC) website.
Commercial Alternative Fuel Vehicle (AFV) Tax Credit
This tax credit ended June 30, 2017 and applies to new commercial medium-duty and heavy-duty vehicles operating with alternative fuels including electricity, propane, natural gas, and hydrogen fuel.
To see what new tax credits may be available for commercial vehicles you can visit the state Alternative Fuels Data Center webpage.
Federal Tax Credits for Fuel-Efficient Vehicle Owners
In addition to the Georgia-specific incentives, there are a number of federal tax credits for fuel-efficient vehicle owners. You might also qualify for tax credits offered by the IRS if you own:
- Electric cars.
- Plug-in hybrids.
- Alternative fuel vehicles (AFVs).
For additional information on federal tax credits for green vehicle owners, consult fueleconomy.gov's Tax Incentive Information Center.
Weight Exemption for Idle Reduction Technology
Because idle reduction technology adds weight to a vehicle, Georgia allows equipped vehicles to exceed the following state weight limits by up to 400 lbs:
- Gross weight.
- Axle weight.
- Tandem weight.
As long as you can prove the idle reduction technology weight—in writing or certification—and show or certify full-time functionality, you can avoid penalties. For more on this, refer to the Idle Reduction Weight Exemption section of the Alternative Fuels Data Center.
Georgia Power's Charging Rate Incentive for Plug-In Electric Vehicles (PEVs)
Georgia Power offers a discount on electricity to customers who own a plug-in electric vehicle. You can easily apply using the online Plug-In Electric Vehicle Application. Or learn more about this private PEV charging rate incentive regarding nighttime charging and changing the times in which you use electricity.
Find a Nearby Georgia Emissions Testing Station
If you drive an eco-friendly vehicle but GA still requires a smog test and emission testing, use our GA Emissions Testing Station tool to find a testing location near you.