Green Driver State Incentives in Tennessee

Tennessee entices its drivers to go green with a handful of time- and money-saving green driver incentives. These include emissions test exemptions for electric cars, high occupancy vehicle (HOV) lane anytime-access for hybrids, federal tax credits for alternative fuel vehicles (AFVs), and auto insurance discounts for fuel-efficient vehicles.

These eco-friendly incentives an related green vehicle laws are subject to change. Keep pace by also periodically consulting your local Department of Motor Vehicles (DOR) branch and the Alternative Fuels Data Center.

TN Vehicle Emissions Test Exemptions

Tennessee ended all emissions testing in February 2022

Federal Tax Incentives for Green Vehicles

Though Tennessee does not offer any local tax incentives for individual drivers at this time, you might be eligible for a federal tax break for purchasing a fuel-efficient vehicle. The government offers federal tax credits to owners of the following eco-friendly cars:

  • Electric cars (EV).
  • Hybrids.
  • Plug-in hybrids (PHEV).
  • Diesels.
  • Alternative fuel vehicles (AFV).

To find out if you're eligible to save even more money, check out

If you have tax incentive-related questions, consider contacting a tax professional and/or your local IRS Taxpayer Assistance Center when it comes time to file.

TN Auto Insurance Discounts for Eco-Friendly Driving and Green Vehicles

Get a break on what you pay for your car insurance for having green driving habits and/or driving a fuel-efficient vehicle. Consult your car insurance company about potential green vehicle auto insurance discounts such as:

  • Hybrid auto discounts.
  • Alternative fuel vehicle (AFV) discounts.
  • Economy car discounts.
  • Low-mileage discounts.
  • Pay-as-you-drive discounts.

Understand that not all auto insurance providers offer the same discounts. Plus, your specific circumstances might also affect how much you save. For example, you might receive a 10% discount on car insurance for owning or leasing a hybrid car, while maintaining low mileage can earn you up to a 30% auto insurance discount.

If your current TN 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.

Find a Nearby Tennessee Emissions Testing Station

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