At least 15 states and three cities have incentives in place. Thirteen states are considering such measures. Oregon offers individuals a state tax credit of as much as $1,500 for buying a hybrid. In Connecticut, cars that get at least 40 mpg are exempt from the 6% sales tax. Colorado hybrid buyers can qualify for a state tax credit of up to $4,713. The federal government allows a one-time tax deduction for buying a hybrid - $2,000 this year and $500 in 2006. Drivers in Los Angeles, Albuquerque and San Jose, Calif., can park free at city meters with their hybrids, although they must still adhere to time limits. Virginia and Utah passed legislation that allows hybrids with one occupant to use the fast lanes. At least four other states - California, Colorado, Georgia and Florida - have passed similar laws but are waiting for a waiver from the federal government. Without the waiver, the states could lose federal highway money. States support hybrid purchases
New Mexico exempts hybrids from sales tax. Also, here in Albuquerque (and Bernalillo County), hybrids are also exempted from the annual exhaust emission check.
In case anyone is interested, when buying a Prius in Japan, the Japanese government pays you 190,000 yen (around $1750 US) back if you trade in a car with 6,000 km a year on the clock. Last year it was 210,000 yen. You supposedly get the money back after six months. The sales tax on the car is also half that of a regular car.
