Search Federal and State Laws and Incentives

Low Emission Truck and Bus Purchase Vouchers

Through the Hybrid and Zero Emission Truck and Bus Voucher Incentive Project (HVIP) and Low Oxide of Nitrogen (NOx) Engine Incentives, the California Air Resources Board provides vouchers to eligible fleets to reduce the incremental cost of qualified electric, hybrid, or natural gas trucks and buses at the time of purchase. Vouchers are available on a first-come, first-served basis. Only fleets that operate vehicles in California are eligible. Voucher amounts vary depending on whether the vehicles are located in a disadvantaged community. For more information, including a list of qualified vehicles and other requirements, see the HVIP website.

Heavy-Duty Alternative Fuel and Advanced Vehicle Purchase Vouchers

The New York State Energy Research and Development Authority (NYSERDA) provides incentives for all-electric and hydrogen fuel cell electric trucks and buses. Incentives are released on a staggered schedule and are distributed based on the following criteria:

Eligible vehicles must be in operation 80% of the time and for a minimum of five years. School buses may only receive the maximum funding amount if the vehicle is domiciled within half a mile of a disadvantaged community. Additional terms and conditions apply. For more information, including voucher availability and vehicle eligibility, see the NYSERDA New York Truck Voucher Incentive Program website.

Vehicle Emissions Reduction Incentives - San Joaquin Valley

The San Joaquin Valley Air Pollution Control District (SJVAPCD) administers the Vanpool Voucher Incentive Program (VVIP), which provides funding for residents to participate in vanpools and reduce or replace single occupant vehicle commutes in the San Joaquin Valley. Residents may receive up to $30 per month for 36 months. Vanpool agencies interested in participating in the program must submit an application to SJVAPCD and sign a contract to become a VVIP partner. For more information, see the SJVAPCD VVIP website.

Transit Emissions Reduction Grants

The Virginia Department of Rail and Public Transportation’s (DRPT) Making Efficient + Responsible Investments in Transit (MERIT) program provides funding for capital improvement projects, including the purchase or lease of new electric, hybrid electric, or propane vehicles. Funding amounts vary based on the project type.

In addition, as part of the MERIT program, the Clean Transportation Voucher Program (Program) offers grants of up to 100% of the incremental cost for transit agencies to replace model year 2009 or older Class 7 and Class 8 diesel transit buses with all-electric buses and up to 100% of the purchase cost of associated charging infrastructure. Awards are capped at $300,000 per electric bus, including charging infrastructure, and $15,000 per propane bus. The Program is funded by Virginia’s portion of the Volkswagen Environmental Mitigation Trust.

For more information, including program guidance and the application, see the DRPT MERIT website and the Virginia Department of Environmental Quality Volkswagen Settlement Agreements website.

Fuel-Efficient Vehicle and Emission Reduction Incentives

The Vermont Agency of Transportation (VTrans) administers the High Fuel Efficiency Used-Vehicle Program, MileageSmart, which provides incentives of up to $5,000 to replace eligible vehicles with a pre-owned vehicle that has a U.S. Environmental Protection Agency (EPA) combined city/highway fuel economy of at least 40 miles per gallon (mpg).

VTrans also offers vouchers of up to $2,500 for the repair of vehicles that failed the on-board diagnostic (OBD) systems inspection. Eligible vehicles for replacement include those that have failed the OBD systems inspection or those that are more than 15 years old and have an EPA combined city/highway fuel economy of less than 25 mpg. Eligible vehicles for a repair voucher are those that have failed the OBD systems inspection, require repairs that are not under warranty, and will be able to pass the inspection once the repairs are made. For more information on the emissions repair program, visit the VTrans Statewide Vehicle Incentives Programs website. The emissions repair program must be operational by January 1, 2023.

(Reference Act 59, 2019 and Act 55, 2021)

Zero Emission Transit Bus Tax Exemption

Zero-emission transit buses are exempt from state sales and use taxes when sold to public agencies eligible for the Low Emission Truck and Bus Purchase Vouchers. This exemption expires January 1, 2026.

(Reference California Revenue and Taxation Code 6377)

Zero Emission Transit Funding

The California Clean Mobility Options Voucher Pilot Program offers vouchers of up to $1,000,000 per project for the purchase of zero-emission vehicles, infrastructure, planning, outreach, and operations projects in low-income and disadvantaged communities. For more information, see the Clean Mobility Options website.

Zero-Emission Truck Rebates

Massachusetts Department of Energy Resources’ Massachusetts Offers Rebates for Electric Vehicles (MOR-EV) Trucks Program offers rebates to public and private fleets for the purchase of all-electric and fuel cell electric trucks with a purchase price of more than $50,000 and gross vehicle weight rating (GVWR) of more than 8,500 pounds (lbs.). Rebate amounts are available in a declining three block rate structure, determined by the number of trucks per weight group. Rebates will be offered in the following amounts:

Purchasers of vehicles with a GVWR of greater than 14,000 lbs. can apply for a voucher to reserve a rebate at the current rebate block value. A voucher may be provided to an applicant who has demonstrated an intent to purchase, which may be evidenced by a completed purchase order. Applicable vehicles that are registered or operate with an environmental justice community are eligible for an increased rebate amount. Applicants must apply for a rebate following the purchase and registration of the truck in Massachusetts and must retain ownership of the truck for a minimum of 36 months. MOR-EV Trucks rebates cannot be combined with funds from the Department of Environmental Protection Volkswagen Settlement-Funded Grant & Incentive Programs.

Additional terms and conditions apply. For more information, visit the MOR-EV Rebate Program website.

Medium- and Heavy-Duty (MHD) Zero Emission Vehicle (ZEV) Voucher Program

The New Jersey Zero Emission Incentive Program (NJ ZIP) will pilot a voucher program for the purchase of new MHD ZEVs registered in New Jersey. Eligible applicants include commercial or institutional organizations. Vouchers are available for up to 100% of MHD ZEV purchase prices, and are based on gross vehicle weight rating (GVWR):

Applicants may receive a maximum of $3,000,000 in vouchers. Vehicles must be purchased through qualified vendors. Additional funding is available to applicants located in environmental justice communities. This program is funded by Regional Greenhouse Gas Initiative proceeds. For more information, including eligibility requirements, see the NJ ZIP Program website.

(Reference New Jersey Administrative Code 7:27D)

Hydrogen and Electric Vehicle (EV) Rebate Program

The Connecticut Department of Energy and Environmental Protection (DEEP) must further develop the Connecticut Hydrogen and Electric Automobile Purchase Rebate (CHEAPR) program by:

• Establishing an Advisory Board of various government and industry members to direct the allocation of CHEAPR funds;
• Providing at least 3 million dollars of rebates and vouchers to residents for the purchase or lease of new or pre-owned EV or fuel cell electric vehicle annually;
• Prioritizing the allocation of funds to residents of environmental justice communities;
• Beginning on June 20, 2024, reporting annually on the effectives of the program; and,
• Conducting outreach programs and marketing campaigns for the promotion of the program.

(Reference Senate Bill 4, 2022)