Maryland and Arizona Award Tax Breaks for Hybrid and Electric Vehicle Purchase

10/27/2000 6:23:18 AM

The states of Maryland and Arizona both passed new laws giving tax breaks to individuals for the purchase of hybrid and electric vehicles. Both laws went into effect on July 1.

The tax break in Maryland consists of up to $1,500 to any citizen who purchases a hybrid-powered car. At this time, the law only applies to the Honda Insight and Toyota Prius.

Dan Reicher, assistant secretary of the U.S. Department of Energy, said he hopes that the Maryland law will encourage other states and Congress to take similar action.

In Arizona, any individual or corporation who purchases a Neighborhood Electric Vehicles (NEV) will have their income tax credit reduced by either 50 percent of the cost of the vehicle or $1,000, whichever amount is more.