Incentives in California for Purchasing a Hybrid Vehicle

Incentives in California for Purchasing a Hybrid Vehicle

Hybrid car buyers in California may take advantage of a generous incentive program that is unique to the state. In contrast to other jurisdictions, this incentive is not confined to tax credits. Those who drive hybrid vehicles are exempt from highway lane restrictions and enjoy parking privileges. Some cities in California also provide incentives for hybrid vehicles. In California, there are a number of advantages to purchasing a hybrid car.

Vehicles with SULEV emissions levels and a state-mandated minimum fuel economy of 45 miles per gallon will be allowed to utilize high occupancy vehicle (HOV) lanes beginning on January 1, 2005. Efforts to implement this program began on August 10th. The Toyota Prius, Honda Insight, and Honda Civic Hybrid are all current examples of qualifying hybrid automobiles. HOV lanes may only be used by vehicles that display specific stickers. There are 75,000 decals available, which will be distributed on a first-come, first-served basis.

Clean-fuel vehicles bought in San Jose are eligible for free parking at downtown public parking facilities and on-street meters around the city. On January 1, 2003, Eligibility—Contact— For further information, contact Jason Burton at (408) 794-1427 or by email at jason.burton@sj.ca.us.

Even though hybrid vehicles may park for free at parking meters in Los Angeles, they can still be penalized for overstaying their time limit. From October 2004 to March 2005, it was put to the test for a period of six months. While the LA Department of Transportation conducts a study, the City Council of Los Angeles recently opted to extend the incentive program through May 2005. Hybrid autos may be identified by police officers who have been taught to do so.

California's Department of Motor Vehicles offers a California Clean Air Vehicle Decal to anybody who owns a Zero Emission or Super Low Emission vehicle as specified by the California Air Resources Board. Using a sticker issued by the DMV means that you no longer have to pay for parking in metered spots in the city. However, you are still subject to the time limit limitations that are in place. To learn more about how to get a California Clean Air Vehicle Decal, visit: http://www.dmv.ca.gov/vr/decal.htm.

For the trial program, the LA Department of Transportation chose four hybrid cars as eligible for free metered parking: Toyota Prius, Honda Civic Hybrid, Honda Insight, and Ford Escape Hybrid.

Send an email to ladot@dot.lacity.org to learn more about the LA Department of Transportation.

Farmers Insurance, based in Los Angeles, is offering a 5% discount on vehicle insurance to California residents who drive hybrid-electric vehicles.Farmers Insurance Discount for Hybrids (private) All customers who possess a hybrid or alternative-fuel car are eligible for the discount, which takes effect on October 1, 2005. The discount will be applied to all new business customers as of the start date and to current customers upon renewal.

Purchasers of hybrid automobiles would get an income tax credit equivalent to a predetermined percentage of the vehicle licensing fee (VLF) they paid during the tax year under Assembly Bill 838. According to the vehicle's emissions rating, a portion of the tax credit would be given. ZEVs would get 100% of the credit, PZEVs 90%, ATPZEVs 85%, and SULEVs 80% of the credit, respectively. To be eligible for the tax credit, a ULEV must have an EPA-rated fuel economy of at least 75 miles per gallon or an actual fuel economy of between 33 and 75 mpg (between 33 percent and 74 percent, accordingly). In the 2005 legislative session, the measure was not approved.

AB 1223, the Hybrid Internet Sales Bill, would enable manufacturers to sell hybrid automobiles directly to consumers without the need for a middleman. On May 2, 2005, the Transportation Committee rejected this measure.

Residents of the Santa Barbara Air Pollution Control District are eligible for incentive cash ($1000) for up to ten (10) hybrid automobiles. Funds are running low. Irene Salazar, ISalazar@energy.state.ca.us, is the person to contact. The California Energy Commission is the entity that is responsible for this issue. The program was terminated on March 30, 2004.