United States - Policies and Legislation

By Country



The Federal government has enacted policies and legislations that promote the U.S. market for EDVs. A new effort has been proposed to support advanced technology vehicle adoption through improvements to tax credits in current law, investments in R&D and competitive programs to encourage communities to invest in infrastructure supporting these vehicles.

The American Recovery and Reinvestment Act of 2009 established tax credits for purchasing electric vehicles (between $2,500 and $7,500 per vehicle, depending on the battery capacity) and conversion kits to retrofit conventionally powered vehicles with electric vehicle capability ($4,000 per vehicle, maximum).

New Corporate Average Fuel Economy (CAFE) standards will encourage the expanded market entry of electric drive technologies. Stricter CAFE standards require cars and light trucks from the 2012 model year (which began sales during 2011) to have an average fuel economy that is 16% greater than the 25.5 mpg average for cars and light trucks for previous model years. CAFE also requires the average fuel economy to be 33% greater in 2016 than in 2011 models, with further increases beyond 2016 under consideration.


As shown in the table below, at least 47 of the 50 U.S. states and the District of Columbia maintain various regulations promoting HEV usage. The overwhelming majority of these states (40 out of 47) provide tax benefits or rebates for HEV purchases. In addition, thirteen states (Connecticut, Florida, Maine, Maryland, Massachusetts, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont, and Washington) and the District of Columbia have attempted to adopt California-like clean air standards, which would require automakers to reduce greenhouse-gas emissions for their vehicles by 30% before 2016.

2010 Status of U.S. State-level Incentives for Hybrid Electric Vehicles.

Type of Incentive


HOV, Parking, or Registration Privileges

Arizona, California, Colorado, DC, Florida, Georgia, Hawaii, Iowa, Maryland, Minnesota, Nebraska, New Jersey, Ohio, Tennessee, and Virginia

Emissions Benefits

Alaska, Arkansas, California, Connecticut, Florida, Michigan, Missouri, Nevada, Oregon, and Washington

Tax Credits, Rebates, or Grants

DC and 40 states

Purchase Directives, Promotion Directives, or Mandates

DC and all states (except for Arkansas, Colorado, Florida, Georgia, Maryland, Michigan, Nebraska, Pennsylvania, and Virginia)