Incentives

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Incentives

Alternative Fuel Vehicle Fleet Buyer's Guide
Incentives, Regulations, Contacts

New York State Incentives
New York's Alternative-Fuel (Clean-Fuel) Vehicle Tax Incentive Program offers tax credits and a tax exemption for people who purchase alternative fuel vehicles (AFVs), hybrid-electric vehicles (HEVs) and/or install clean-fuel vehicle refueling equipment.
Purchasers of electric vehicles (EVs) are eligible for a tax credit worth 50% of the incremental cost, up to a maximum of $5,000 per vehicle. All dedicated EVs qualify for this credit.
Purchasers of qualified HEVs are eligible for a tax credit of up to $2,000. To qualify, the vehicle must draw propulsion energy from both an internal combustion engine (or heat engine that uses combustible fuel) and an energy storage device; and must employ a regenerative braking system that recovers waste energy to charge such energy storage device. Current production models such as the Toyota Prius and Honda Insight qualify.
Purchasers of compressed natural gas (CNG), liquefied petroleum gas (LPG), methanol, ethanol, and hydrogen-powered vehicles are eligible for a tax credit worth 60% of the incremental cost. The maximum value for vehicles weighing less than 14,000 lbs. Gross Vehicle Weight (GVW) is $5,000. The maximum value for vehicles with a GVW over 14,000 lbs. is $10,000.
The installation cost of clean-fuel vehicle refueling equipment (including EV recharging stations) is eligible for a tax credit worth up to 50% of the project cost. There is no limit on this incentive.
The incremental cost of clean-fuel vehicles and the project costs of developing refueling infrastructure are exempt from New York State sales tax. This exemption expires February 1, 2004.

These incentives apply to vehicles and refueling property placed in service by December 31, 2003. For more information, please contact the New York State Energy Research & Development Authority (NYSERDA) at (866) NYSERDA, via email at info@nyserda.org, or visit the Web site at www.nyserda.org.

Laws and Regulations
State agencies and other affected entities shall procure increasing percentages of alternative fuel vehicles (AFVs), including hybrid-electric vehicles, as part of their annual vehicle acquisition plans. By 2005, at least 50% of new light-duty vehicles acquired by each agency and affected entity shall be AFVs, and by 2010, 100% of all new light-duty vehicles shall be AFVs, with the exception of designated specialty, police, or emergency vehicles. State agencies and other affected entities that operate medium and heavy-duty vehicles shall implement strategies to reduce petroleum consumption and emissions by using alternative fuels and improving vehicle fleet fuel efficiency. (Reference Executive Order No. 111)
New York's Zero Emission Vehicle (ZEV) Mandate requires each auto manufacturer's sales fleet of passenger cars and light-duty trucks (weighing from 0-3,750 lbs.), produced and delivered for sale in New York, be at least 10% ZEVs starting in 2005. An alternative compliance program has been instituted to expand the options automakers have to meet the ZEV mandate. Under this program, automakers must make the following commitments:
By model year 2004, at least 10% of all vehicles sold must be partial ZEV or better;
By model year 2005, 9% of vehicles would be partial ZEV and 1% would be advanced technology partial ZEV (ATPZEV), such as HEVs, which use alternative fuels and/or electric drives;
By model year 2006, 7% of vehicles would be partial ZEV, 2% ATPZEV and 1% ZEV, which could be battery-electric or fuel cell vehicles; and
Any ZEV or partial ZEV models available in California also would have to be available in New York State.
(Reference 6 NYCRR Part 218)
New York City Council established a program in 1991 requiring the purchase and/or conversion of AFVs for city government use. The program required 80% of the light-duty, non-emergency fleet, and 15% of the transit buses, be alternatively fueled. (Reference Administrative Code of the City of New York 24-163.1 and 24-163.2)
New York provides a partial sales and use tax exemption for the sale of new AFVs and for vehicles that are converted to run on alternative fuels. (Reference New York Tax Law Section 1115)

Federal Incentives - "Money in the Bank" article from Uptime Altfuels Newsletter
Everyone benefits from increased use of alternative fuel vehicles (AFVs), which help the environment and reduce our country's dependency on foreign oil. But AFVs also make good business sense - thanks to a variety of government incentives available to fleets that buy or lease AFVs.
The federal government offers significant incentives to fleets that purchase specified AFVs. There's a tax deduction of $2,000 per vehicle (higher in some states) on AFVs purchased below 10,000lb GVRW*. AFVs purchased between 10,000 lb. and 26,000 lb. GVRW* receive a tax deduction of up to $5,000 per vehicles - and each AFV purchased over 26,000 lb. GVRW* earns a tax deduction of as much as $50,000 (amount varies depending on state and emissions).
To learn more about public and private incentive programs, along with contact names and phone numbers for all 50 states, visit the "Gov't Incentives" page on www.gmaltfuel.com.

*GVRW (Gross Vehicle Weight Rating): When properly equipped, includes weight of vehicle, passengers, cargo and equipment.

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	Clean Communities of Western New York, Inc.© March 26, 2003