Over the years eco-friendly like those of the Hybrid variety have made a consistently good case that they can save owners money in the long-term with reduced costs at the fuel pump. On top of that they help the environment through lower emissions.
However, their benefits don’t stop there.
They can also offer financial incentives for owners throughout the year. Nowadays, most states have hybrids and electric cars easily accessible and affordable.
Although some people might be surprised at just how much eco-friendly car costs, the long-term financial benefits can outweigh that price. Plus, it also provides long-term environmental incentives, which is why many consider it as an investment.
One benefit that people who buy eco-friendly cars have is tax deductions. With it, the government hopes to encourage more people to choose eco-friendly vehicles instead of combustion engine vehicles. Taxpayers in the US can experience tax refunds and lower income taxes due to this incentive.
Energy Laws For Tax Incentives Of Eco-Friendly Car Buyers
The Energy Policy Act of 2005 allows taxpayers who bought new hybrid cars to have an income tax credit for up to $3400. However, this is limited to those who purchased the new vehicles from January 1, 2006, up to December 30, 2010.
The Energy Independence and Security Act is another law that was passed in 2007. This policy includes plug-in hybrids and electric vehicles in the tax-saving incentives. In 2009, the American Recovery and Reinvestment Act was also passed. Rather than affecting personal tax incentives, this act is more focused on the infrastructure affecting eco-friendly vehicles. This act has affected various aspects including alternative fuel, diesel engines, and electric vehicles. Some states even allow hybrid cars to pass through carpool lanes even when there are no passengers as an added incentive.
Incentives For Those In California
California is one of the states that offers great incentives for those who have low or zero-emission vehicles. High occupancy vehicle lanes can be used by those who have a minimum of two people inside the vehicle. In California, the eco-friendly vehicles are exempted from this rule. The drivers must also get a special decal so they can travel high occupancy toll roads for free.
Various cities like Santa Monica, San Jose, and Hermosa beach offer an added incentive such as free parking for eco-friendly vehicles.
Through the Consumer Assistance Program, those who have vehicles that cause much pollution can get an incentive of $1000 to $1500 if they decide to voluntarily retire those cars. Another great incentive for eco-friendly car owners in California is the insurance discount. The insurance discount can range from 10% to 30%.
Incentives For Those In Florida
Just like California, those in Florida can use the high occupancy vehicle lanes even if the only person in the car is the driver, provided that the car is certified by EPA as a low-emission vehicle. Although this doesn’t save money, this does save lots of time for eco-friendly car drivers. Additionally, Florida gives out tax incentives for businesses that own alternative fuel cars. They will receive rebates for owning alternative fuel vehicles.
On top of that, some car insurance companies also provide discounts. However, this would vary from one provider to another. The discount will also range from 10% to 30%.