Incentive You Get for Owning an Alternative Fuel Vehicle (AFV)

Besides the obvious advantages to owning an AFV, the government is also stepping in to make it even more advantageous. People who buy these types of vehicles are given tax breaks on their income taxes. Additionally, many states also offer incentives and car manufacturers even offer rebates or discounts.

Most incentives offset a percentage of the incremental cost of the vehicle (the additional dollars OEMs charge for the AFV versus a conventional model). Federal and state laws also help keep the cost of alternative fuels competitive with gasoline or diesel.

Consider the following examples of state offered incentives:

In California, AFVs can use the High Occupancy Vehicle lane regardless of the number of passengers in the car. Plus, in some places, AFVs even get free metered parking.

Texas is giving schools and school districts grants to convert school vehicles such as buses to an AFV. The state also provides a tax break during licensing and registration for the owner of an AFV.

Florida also offers an exemption to the driver of an AFV allowing them to travel in the High Occupancy Vehicle lane regardless of how many passengers are in the car. They are also exempt from a portion of taxes levied on fuel.

When people who have AFVs and go to fuel them at approved fueling stations, they are exempt from all state and local excise and use taxes placed on the fuel.

And that’s just a sampling. Almost all states have federal grants and funding specifically allocated to make a switch for all government vehicles including heavy equipment, buses, and taxis to become alternative fuel vehicles. States are increasingly aware of the damage that car emissions can cause and they are taking steps to make their states environmentally friendly and healthier.