[4] The Energy Independence and Security Act of 2007 expanded these incentives to include emerging electric vehicle, and plug in hybrid, technology.
[4] The tax incentives that are the result of the Energy Policy Act of 2005 are offered to make pricier, but more environmentally friendly vehicles more appealing.
The size of the offered tax credit typically corresponds in value to the amount of money that the technology in question adds to the manufacture price of the car.
For example, hydrogen fuel cell vehicles that are in the early stages of development are more expensive and receive a larger tax credit than a diesel car that is cheaper to make.
Existing incentive programs are also set to phase out after a given maker sells 60,000 hybrid vehicles, so more popular models like the Toyota Prius are no longer subject to a tax credit.
[10] The Department of Energy has specific requirements that car manufactures must meet, in order to receive tax credits from the government.
[179] Both the Nissan Leaf electric vehicle and the Chevrolet Volt plug-in hybrid, launched in December 2010, are eligible for the maximum $7,500 tax credit.
[182] The Toyota Prius Plug-in Hybrid, released in January 2012, is eligible for a $2,500 tax credit due to its smaller battery capacity of 5.2 kWh.
Some states offer free parking for electric vehicles, or rebates to people who install charging stations at their home or business.