United States (Federal) Expired Incentives and Laws
Car Allowance Rebate System
Expired: 08/24/2009
The Car Allowance Rebate System (CARS) is a voluntary incentive program designed to encourage consumers to trade in older, less fuel-efficient cars and trucks for newer, more fuel-efficient vehicles. The U.S. Department of Transportation's National Highway Traffic Safety Administration will administer the program. Consumers may receive $3,500 or $4,500 credit toward the purchase or lease of a new, qualified fuel-efficient vehicle at a participating dealership. The incentive amount depends on the type of vehicle purchased and the improvement in fuel economy of the purchased vehicle as compared to the eligible trade-in vehicle. In general, eligible trade-in vehicles must have a combined city/highway fuel economy rating of 18 miles per gallon or less, be in drivable condition, be less than 25 years old, and registered and insured for the full year prior to trade-in. The program will end November 1, 2009, or when funds authorized for the program are exhausted. For more information, including additional eligibility requirements, see the CARS Web site. (Reference Public Law 111-32, and 49 CFR 512 and 599)
Electric Vehicle Tax Credit
Expired: 12/31/2007
A tax credit for the purchase of qualified electric vehicles is provided under Section 179A of the Energy Policy Act of 1992; it was extended through 2007 by the Working Families Tax Relief Act of 2004. IRS Form 8834 (PDF 368 KB) can be used to calculate the credit for qualified electric vehicles placed in service. Download Adobe Reader. The credit amount equals 10% of the cost of the vehicle up to $4,000. This credit is scheduled to be reduced by 75% in 2006 and expire in 2007. To qualify for the credit, the vehicle must be powered primarily by an electric motor drawing current from batteries or other portable sources of electricity. All dedicated, plug-in-only electric vehicles qualify for the tax credit, which is available for business or personal vehicles. A tax deduction of up to $100,000 per location is available for qualified electric vehicle recharging property used in a trade or business.
High Occupancy Vehicle (HOV) Lane Exemption
Expired: 09/30/2009
States are allowed to exempt certified low emission and energy-efficient vehicles from HOV lane requirements within the state. Eligible vehicles must be certified by the U.S. Environmental Protection Agency (EPA) and appropriately labeled for use in HOV lanes. The EPA issued a Notice of Proposed Rulemaking in May 2007 and a final rule is expected in September 2008. The Department of Transportation is responsible for planning and implementing HOV programs, including the exemption criteria established by EPA. States that choose to adopt these requirements will be responsible for enforcement and vehicle labeling. The HOV exemption for low emission and energy-efficient vehicle expires September 30, 2009. For more information, including a draft list of eligible vehicles based on the most recent certification data available to EPA, visit the HOV Exemption Web site. (Reference 23 U.S. Code 166)
Petroleum Violation Escrow Account
Expired: 12/31/2005
Oil overcharge funds, also known as petroleum violation escrow (PVE) funds, came from fines paid by oil companies in violation of the federal oil price caps in place from 1973-1981. These funds may be used for energy efficiency and renewable energy projects. More than half the account's money is channeled through the U.S. Department of Energy's (DOE) State Energy and Weatherization Assistance Programs and the U.S. Department of Health and Human Services' Low-Income Home Energy Assistance Program. These programs grant funds (with DOE review) to states for a broad range of energy-related programs. To date, more than $4 billion in PVE funds have been made available to states. For more information, contact Faith Lambert, DOE, Office of State and Community Programs, at (202) 586-2319, faith.lambert@hq.doe.gov, or your State Energy Office (listed under your state's Points of Contact section).
