The Connecticut initiative campaign to create a national electric car tax credit has been a failure to date. Only seven states have adopted some form of this type of program. These include Connecticut, Delaware, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont. If you live in one of these seven states, there is still hope. There are incentives available that can help drive sales and popularity in this niche market.

The CHEAPR program is actually a separate state program and is based on federal tax credits. Consumers who buy qualified electric-powered vehicles can also qualify for federal tax incentives. In Connecticut, for example, residents who own at least two electric vehicles can double their current tax credit amount. This credit is scheduled to end in July 2021. Although not yet implemented in the state, the federal government has stated that it will announce additional incentives to increase the number of qualifying purchases.

The first group of incentives for new vehicle purchases comes from tax credits received under the federal Making Energy Tax Credit (MECT) program. It is currently being implemented in many states, including Connecticut. The Connecticut incentive program caps the amount of eligible energy efficient equipment at the same level as the federal level. For manufacturers, this means that only 50% of eligible energy efficient appliances and equipment can be purchased. The second group of electric vehicle tax credits comes from electric vehicle sales tax credit programs. A manufacturer must get permission from the department of Revenue before selling any EIC in the state.

Some have criticized the Connecticut incentive programs as too good to be true. On the other hand, some say that the lack of rebates is an unfortunate byproduct of a very generous federal government. While some see the Connecticut incentive as benefiting primarily new car buyers, others say that it encourages cat owners to keep their old vehicles. Either way, the federal government’s electric vehicle tax credits may become a new way for Americans to save money on gas.

The federal electric vehicle tax credit allows taxpayers to deduct the cost of eligible vehicles from their income taxes. The eligible vehicles are those manufactured between 2021 and must be operated every year for five years or the vehicle will be considered obsolete. A further five years of tax credit is available if the vehicle still qualifies for the federal Alternative Fuel Standard.

A recent study shows that the federal tax credit for electric and hybrid cars in the state of Connecticut has resulted in a significant increase in the purchase of these vehicles. The study was performed by the National Association of Automobile Dealers, which indicates that Connecticut buyers have increased the purchase of hybrid or electric cars by twenty percent over the previous year. The NADA also notes that the state leads the country with the most growth in sales of electric and hybrid vehicles. The NADA also notes that the number of dealers using diesel-powered vehicles has dropped by fifteen percent over the last two years.

In the state of Massachusetts, electric vehicle tax credits are currently being sought and currently being implemented by the Massachusetts Transportation Department. Many cities throughout Massachusetts are considering implementing federal tax incentives to reduce the cost of fuel for their fleets. In September, Boston was chosen as one of the cities interested in applying federal incentives. As previously reported, officials in Boston plan to apply federal tax incentives to fleets operating double-duty shuttle buses that use electric power. The buses would run both on diesel fuel and biodiesel.

A recent study done by researchers at the University of California – Berkeley suggests that the electric vehicle market could see more than ten percent annual growth, and that electric and hybrid cars could eventually account for fifty percent of all new car sales. This electric and hybrid vehicle market potential mirrors what many other cities around the world are hoping to see. If you have a business in Massachusetts, then you might want to look into a federal credit vehicle purchase program. As millions of dollars are lost to fuel prices, the federal government is trying to do whatever it can to give local municipalities incentives to adopt alternative fuel technologies. You could help your business in Massachusetts by researching which cities are applying these incentives.