Home > English > Financial Incentives > State Incentives

STATE INCENTIVES

States vary widely in their availability of incentives and funding programs to encourage alternative fuel vehicle use. Incentives range from tax credits for vehicle purchasers to parking and HOV lane exemptions, while many states provide assistance through grants and loans for natural gas infrastructure development or funding for related research and development.

Alabama (1) - View State Incentives
Center for Alternative Fuels (Center) administers a grant program funded by an income tax check-off program through the Alabama Alternative Fuels and Research Development Fund.

Alaska
No known state incentives

Arizona (2)

• High Occupancy Vehicle (HOV) Lane Exemption
• Electric Vehicle (EV) Equipment Tax Credit

Arkansas (3) - View State Incentives

• Alternative Fuel Grants
• Idle Reduction Technology Loans
• Electric Vehicle (EV) Equipment and Fuel Cell Income Tax Credit

 California (22) - View State Incentives

• Idle Reduction Incentives
• Alternative Fuel Incentive Development
• Alternative Fuel Vehicle (AFV) Rebate Program
• Alternative Fuel Research and Development
• High Occupancy Vehicle (HOV) Lane Exemption
• Funding for Emission Reductions
• AFV and Refueling Infrastructure Grants and Loans
• Lower-Emission School Bus Grants
• Alternative Fuel Research and Development
• Vehicle Emission Reduction Grants (Sacramento)
• Funding for Air Quality Improvement Programs (Ventura County)
• AFV, Refueling Infrastructure and Idle Reduction Grants (San Jose)
• Low-Emission Vehicle Incentive and Technical Training (San Joaquin Valley)
• Technology Advancement Funding
• Natural Gas Vehicle Home Fueling Infrastructure Incentive (South Coast)
• Alternative Fuel and Advanced Technology Vehicle and Infrastructure Incentives – Vacaville
• Electric Vehicle Parking Incentive (Sacramento)
• AFV and Hybrid Electric Vehicle Parking Incentive (Los Angeles)
• Clean Vehicle Parking Incentive (Hermosa Beach)
• HEV and Zero Emission Vehicle Parking Incentive (San Jose)
• AFV and HEV Parking Incentive (Santa Monica)
• EV Parking Incentive (LAX)

Colorado (6) - View State Incentives

• Biofuels Research Grants
• Alternative Fuel Vehicle and Hybrid Electric Vehicle Tax Credit
• AFV Rebate
• Alternative Fuel Infrastructure Tax Credit
• High Occupancy Vehicle Lane Exemption
• Low Emission Vehicle Sales Tax Exemption

Connecticut (4) - View State Incentives

• Alternative Fuel Vehicle and Hybrid Electric Vehicle Tax Exemption
• Biodiesel Production and Distribution Grants
• Biofuels Support
• AFV and HEV Parking

Delaware
No known state incentives

Florida (5) - View State Incentives

• Alternative Fuels Production Incentive
• Renewable Energy Grants
• Hydrogen and Biofuels Tax Exemption
• Hydrogen and Biofuels Investment Tax Credit
• HOV Lane Exemption

Georgia (5) - View State Incentives

• Alternative Fuel Production Facility Tax Exemption
• Zero Emission Vehicle Tax Credit
• Alternative Fuel Vehicle Tax Credit
• Electric Vehicle Charger Tax Credit
• AFV High Occupancy Vehicle Lane Exemption

Hawaii (2) - View State Incentives

• Business Investment Tax Credit
• Ethanol Production Incentive

Idaho (2) - View State Incentives

• Biofuel Fueling Infrastructure Tax Credit
• Biofuels Tax Deduction

Illinois (7) - View State Incentives

• Hybrid Electric Vehicle Rebate
• E85 Refueling Infrastructure Grant
• Clean School Bus Program
• AFV and Alternative Fuel Rebates
• AFV Incentives
• Biofuels Research and Development
• Green Vehicle Fee Reduction (Wilmette)

Indiana (11) - View State Incentives

• Alternative Fuel Vehicle (AFV) Manufacturer Tax Credit
• E85 Fueling Station Grant Program
• E85 Storage Tank Cleaning Grants
• Ethanol Production Tax Credit
• E85 Fuel Retailer Tax Credit
• E85 Fuel Use Tax Credit
• Vehicle Research and Development Grants
• Biodiesel Price Preference
• Biodiesel Blending Tax Credit
• Biodiesel Production Tax Credit
• Biodiesel Retailer Tax Credit

Iowa (9) - View State Incentives

• Ethanol Blend Retailer Tax Credit
• E85 Retailer Tax Credit
• Biodiesel Tax Credit
• Biofuels Infrastructure Grants
• Alternative Fuel Vehicle (AFV) Demonstration Grants
• Alternative Fuel Loan Program
• Alternative Fuel Production Loans
• Alternative Fuel Production Tax Credits
• Alternative Fuel Research and Development

Kansas (6) - View State Incentives

• Cellulosic Ethanol Production Incentive
• Renewable Fuel Retailer Incentive
• Biodiesel Production Incentive
• Alternative Fuel Vehicle (AFV) Tax Credit
• Alternative Fueling Infrastructure Tax Credit
• Ethanol Production Incentive

Kentucky (5) - View State Incentives

• Biodiesel Production and Blending Tax Credit
• Ethanol Production Tax Credit
• Alternative Fuel Production Tax Incentives
• Alternative Fuel Research, Development and Promotion
• Alternative Fuel and Vehicle Promotion

Louisiana (2) - View State Incentives

• Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Tax Credit
• Biodiesel Equipment and Fuel Tax Exemption

Maine (2) - View State Incentives

• Biofuels Production Tax Credit
• Alternative Fueling Infrastructure Tax Credit

Maryland (4) - View State Incentives

• Cellulosic Ethanol Research and Development Tax Credit
• Hybrid Electric Vehicle (HEV) and Electric Vehicle (EV) Tax Credit
• Biofuels Production Credits
• Hybrid Electric Vehicle (HEV) Exemption from Vehicle Testing Requirements

Massachusetts
No known state incentives

Michigan (6) - View State Incentives

• Hybrid Electric Vehicle Research and Development Tax Credit
• Alternative Fuel Research and Development Tax Exemption
• Alternative Fuel Fueling Infrastructure Grants
• Reduced Biofuels Tax
• Alternative Fuel Development Property Tax Exemption
• Alternative Fuel Vehicle (AFV) Emissions Inspection Exemption

Minnesota (3) - View State Incentives

• E85 Fueling Infrastructure Grants
• Ethanol Production Incentive
• Idle Reduction Technology Loan Program

Mississippi (1) - View State Incentives

• Biofuels Production Incentive

Missouri (3) - View State Incentives

• E85 Fueling Infrastructure Grants
• Ethanol Production Incentive
• Idle Reduction Technology Loan Program

Montana (7) - View State Incentives

• Renewable Energy Property Tax Incentive
• Ethanol Production Incentive
• Biodiesel Tax Credit
• Biodiesel Production Facility Tax Credit
• Biodiesel Production Incentive
• Alternative Fuel Vehicle (AFV) Conversion Tax Credit
• Tax Reduction for Ethanol Blends

Nebraska (3) - View State Incentives

• Biodiesel Production Investment Tax Credit
• Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Loans
• Alternative Fuel Tax Refund

Nevada
No known state incentives

New Hampshire
No known state incentives

New Jersey (6) - View State Incentives

• Alternative Fuel Vehicle (AFV) Rebate
• Biodiesel Fuel Use Rebate
• Alternative Fuel Infrastructure Rebate
• High Occupancy Vehicle (HOV) Lane Exemption
• Zero Emissions Vehicle (ZEV) Tax Exemption
• Idle Reduction Technology Grant

New Mexico (5) - View State Incentives

• Biodiesel Blending Tax Credit
• Alternative Fuel Vehicle (AFV) Research and Development Tax Credit
• Biofuels Tax Exemption
• Hybrid Electric Vehicle (HEV) Tax Exemption
• Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Grants

New York (11) - View State Incentives

• Alternative Fueling Infrastructure Tax Credit
• Biofuel Production Tax Credit
• Biofuel Fueling Infrastructure Funding
• Alternative Fuel Bus Funding
• Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Funding
• Alternative Fuel Technical Assistance
• Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Technical Assistance
• Alternative Fuel Product Development Funding
• High Occupancy Vehicle (HOV) Lane Access
• Alternative Fuel Vehicle (AFV) and Electric Vehicle (EV) Funding (New York City)
• Compressed Natural Gas (CNG) Taxi Funding (New York City)

North Carolina (10) - View State Incentives

• Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Grants
• Biofuels Industry Development
• Biodiesel Production Tax Credit
• Alternative Fuel Production Tax Credit
• Exemption for Small Biofuels Producers
• Renewable Energy Property Tax Credit
• Alternative Fuel Fueling Infrastructure Tax Credit
• Alternative Fuel Vehicle (AFV) Grants
• Alternative Fuel and Alternative Fuel Vehicle (AFV) Fund
• School Bus Emission Reduction Grants

North Dakota (6) - View State Incentives

• Biofuels Loan Program
• Biodiesel Sales Equipment Tax Credit
• Biodiesel Production Equipment Tax Credit
• Ethanol Production Incentive
• Quarterly Ethanol Production Incentive
• Biodiesel Income Tax Credit

Ohio (5) - View State Incentives

• Biofuels Retail Tax Credit
• Biodiesel Grant Program
• Alternative Fuel and Fueling Infrastructure Grants
• Fuel Cell Development Funding
• Heavy-Duty Emission Reduction Grant and Loan Program

Oklahoma (8) - View State Incentives

• Biofuels Tax Exemption
• Alternative Fuel Vehicle (AFV) Tax Credit
• Alternative Fueling Infrastructure Tax Credit
• Biodiesel Production Tax Credit
• Ethanol Production Tax Credit
• Ethanol Fuel Retailer Tax Credit
• Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Loans
• Alternative Fuel Vehicle (AFV) Loans

Oregon (8) - View State Incentives

• Biofuels Use Tax Credit
• Biofuels Production Property Tax Exemption
• Alternative Fuel Production Facility and Fueling Infrastructure Tax Credit
• Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Tax Credit
• Alternative Fuel Loans
• Idle Reduction Incentives
• Biofuels Production and Distribution Grants (Portland)
• Portland Biofuels Fueling Infrastructure Grants

Pennsylvania (5) - View State Incentives

• Renewable Energy Grants
• Alternative Fuel and Idle Reduction Grants
• Alternative Fuel Vehicle (AFV), Hybrid Electric Vehicle (HEV), and Fueling Infrastructure Funding
• Idle Reduction Loans
• Idle Reduction Incentives

Rhode Island (4) - View State Incentives

• Alternative Fuel Vehicle (AFV) Loans
• Electric Vehicle (EV) Tax Credit
• Biodiesel Tax Exemption
• Alternative Fuel Vehicle (AFV) Tax Exemption (Warren)

South Carolina (8) - View State Incentives

• Biofuels Retail Incentive
• Alternative Fuel Vehicle (AFV) Sales Tax Rebate
• Plug-In Hybrid Electric Vehicle (PHEV) Tax Credit
• Alternative Fuel Vehicle (AFV) Tax Credit
• Biofuels Production Tax Credit
• Biofuels Research and Development Tax Credit
• Biofuels Distribution Infrastructure Tax Credit
• Biofuels Production Facility Tax Credit

South Dakota (3) - View State Incentives

• Ethanol and Methanol Tax Credit
• Biodiesel Production Facility Tax Refund
• Ethanol Production Incentive

Tennessee (6) - View State Incentives

• Biodiesel Infrastructure Grants
• Biofuels Fueling Infrastructure Grants
• Alternative Fuel Innovations Grant
• Agricultural Feedstock Processing Demonstration Loan Program
• Biodiesel Production Incentive
• Infrastructure Development Program

Texas (9) - View State Incentives

• Heavy-Duty Natural Gas Vehicle (NGV) Grants
• Alternative Fuel Vehicle (AFV) Grants
• Clean Vehicle and Equipment Grants
• Alternative Fuel Grants
• Natural Gas Fuel Rates and Alternative Fuel Promotion
• Alternative Fuel Grant Assistance
• Alternative Fuel Research and Development
• Liquefied Petroleum Gas (LPG) Bus and Forklift Rebate
• Liquefied Petroleum Gas (LPG) Vehicle Training

Utah (4) - View State Incentives

• High Occupancy Vehicle (HOV) Lane Exemption
• Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Grants and Loans
• Clean Fuel Vehicle Tax Credit
• Alternative Fuel Vehicle (AFV) Parking Incentive – Salt Lake City

Vermont (1) - View State Incentives

• Alternative Fuel and Advanced Vehicle Research and Development Tax Credit

Virginia (4) - View State Incentives

• Biodiesel Production Tax Credit
• Biofuels Production Grants
• High Occupancy Vehicle (HOV) Lane Exemption
• Alternative Fuel Job Creation Tax Credit

Washington (9) - View State Incentives

• Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Tax Exemption
• Alternative Fuel Grant and Loan Program
• Electric and Plug-In Hybrid Electric Vehicle Demonstration Grants
• Biofuels Retail Tax Exemption
• Biofuels Tax Deduction
• Biofuels Production Tax Exemption
• Idle Reduction Tax Incentives
• Alternative Fuel Vehicle (AFV) Annual Fee
• Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Emission Inspection Exemption

West Virginia (1) - View State Incentives

• Alternative Fuel School Bus Incentive

Wisconsin (4) - View State Incentives

• Vehicle Battery and Engine Research Tax Credits
• Biodiesel Fuel Use Incentive
• Alternative Fuel Tax Refund for Taxis
• Idle Reduction Grant Program

Wyoming (1) - View State Incentives

• Ethanol Motor Fuel Production Tax Credit
  

Source: U.S. Department of Energy