Hybrid Car Incentives
As hybrid cars cause less pollution and allow for less reliance on oil, consumers are encouraged to buy them for many reasons. The U.S. government offers incentives that are designed to make ownership of hybrid vehicles more profitable and convenient. If you are considering buying a hybrid car, you should be aware of the many benefits associated with owning a hybrid.
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Tax Credits
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Tax credits are one of the most common and popular types of hybrid car incentives. Usually, each model of hybrid vehicle has a specific dollar amount that its owner can deduct from his or her tax return. You can also receive a tax credit for converting your standard vehicle into a hybrid. This credit is equal to about 10 percent of the cost of the conversion. In 2009, the maximum amount allowed under the credit was $4000. The credit will apply until December 31, 2011.
HOV Lane Access
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Hybrid vehicles are also allowed access to high-occupancy vehicle, or HOV, lanes. A bill passed in 2006 by the House of Representatives allowed states to open HOV lanes to hybrid vehicles. This means that drivers of hybrid cars, even if they are driving alone, are allowed to use the lanes specified for carpool only. In order for a hybrid vehicle to be allowed to use the HOV lane, however, it must demonstrate at least a 50 percent improvement in efficiency over non-hybrid vehicles.
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Hybrid Upgrade Insurance Option
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Some states allow insurance companies to offer a hybrid upgrade option on their policies. With this upgrade, owners are allowed to upgrade to a hybrid model of vehicle in the event of a total loss of their vehicle within the first three model years. This upgrade is only allowed in a few states.
Private Incentives
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Some insurance companies offer private incentives to customers with hybrid cars. One company offers a 10 percent discount on auto insurance, regardless of the type of insurance plan the customer carries. In addition, many hotels offer a discount to guests who arrive in hybrid cars. This discount can take many forms, from a flat-rate room discount to savings on the price of parking.
State Incentives
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In addition to federal and private discounts, different states offer a wide variety of different incentives. These can take the form of credits to state taxes, state sales tax exemptions and reduced vehicle registration fees.
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