Alternative fuel vehicles (AFVs) can cost more to purchase than a conventional car. For more than 20 years, the State of California has supported consumers who have purchased AFVs with tax credits and other financial incentives. The incentives have been offered for both the vehicles and to build the infrastructure to fuel those vehicles.

In light of the increasing state budget problems, however, incentives offered by the State of California have been suspended at this time. Other non-state incentives, however, may be available.

Hybrid vehicles can receive a federal tax deduction of $2,000 for vehicles purchased before January 1, 2006. Some local governments and air quality districts in California may also offer additional rebates for residents in their area who purchase an AFV or hybrid.

For more on incentives, please check the database at the Air Resources Board's Drive Clean Web Site.

Hybrid Vehicles and High Occupancy Vehicle or Diamond / Carpool Lanes

Recent enactment of the 2005 Federal Transportation Bill allows California to fully implement Assembly Bill 2628. AB 2628, signed into law on September 23, 2004, allows single-occupant use of High Occupancy Vehicle (HOVs) or carpool lanes by the cleanest alternative fuel, hybrid, and full-electric vehicles. Use of these lanes with only one occupant requires an identification sticker issued by the California Department of Motor Vehicles. For more, please go to: www.arb.ca.gov/msprog/carpool/carpool.htm