Perks of Buying Hybrid or Electric Vehicles

Hybrid and fully electric vehicles are believed to be better for the environment than standard gas-powered vehicles. For that reason, many states now offer incentives to buyers willing to make the switch. Incentives provided by these states not only make buying hybrids and EVs more affordable, but also come with some extended driving privileges, too, depending on the type. Here’s an overview of the different incentives, and some of the states that offer them.

Common Incentives

Here are some ways that states are incentivizing hybrid and full electric vehicles. The incentives make it more enjoyable to own these types of vehicles, and more affordable.

  • HOV lane access for faster transportation
  • Exclusive parking spots in cities
  • Discounts on auto insurance
  • Money back and other finance incentives
  • Inspections and emission test exemptions
  • Lower utility rates

State Examples

Here are some examples of states that offer incentives, and the types of incentives offered. The perks vary by state and are changed and modified regularly, so it’s important to keep current if you are considering changing to an EV or hybrid car. 


  • Rebate program - Offers up to $2,500 back for qualifying purchases.
  • Insurance discount - Coverage cost reduced on eligible vehicles.
  • HOV lanes - Special HOV lanes make traveling faster. Single drivers in hybrids can use carpooling lanes.
  • Utility savings - Some California power companies extend discounts on home energy costs for hybrid and EV owners


  • Special rebate - A state program, known as the CHEAPR rebate, offers eligible car buyers $3,000 toward the purchase price of an EV or hybrid.
  • Lower registration - Registration fees are reduced for eligible vehicles.
  • New Haven parking - In New Haven there is free parking for all hybrid and full electric vehicles.


  • HOV lanes - Single riders can use carpool lanes, and special hybrid and EV lanes exist in some locations.
  • Tax Credit - There is a tax credit up to $5,000 or 20% of the vehicle cost the year a zero emission vehicle is purchased.
  • Alternative Fuel tax credit - When using an alternative fuel vehicle there is an additional tax credit of up to $2,500 or 10% of the total car value.
  • Lower utilities - Electric car owners are eligible for reduced energy costs charging at home.


  • Vouchers - Credits of up to $3,500 to be used for the purchase of hybrid, natural gas or electric vehicles.
  • Rebates - A rebate of up to $2,500 is available for purchased or leased hybrid or electric vehicles.

The states listed above aren’t the only ones that offer incentives for locals to rely on hybrid or electric vehicles. There are currently more than a dozen states offering similar programs to those who make the switch to hybrid or electric. If you are in the market for a new car, check the incentives where you live. It might make sense for you to make the switch, too.