There are many incentives designed to encourage the use of alternative fueled vehicles (AFVs) and this page highlights some of the most useful to those looking to purchase or lease an AFV. The views expressed by outside organizations are not necessarily the views of the City of Los Angeles or the Environmental Affairs Department. Links are provided as a service for visitors to the City's website. This page is organized by vehicle type: Compressed Natural Gas, Electric, and Hybrid Electric Vehicles. 

Compressed Natural Gas (CNG) Vehicles

Federal Income Tax Deduction: There is a one time federal income tax deduction for the purchase of CNG vehicles for up to $2,000. Please consult with an accountant or tax professional to verify the amount and requirements before claiming the deduction.  For more general information on tax incentives please visit The U.S. Department of Energy's site www.fueleconomy.gov and click on "Possible Tax Incentives."

State Rebates: The California Energy Commission (CEC) offers a $3,000 rebate on the purchase or lease of CNG vehicles (in the Los Angeles area) through their Efficient Vehicle Incentive Program.  The staff person for this program is Irene Salazar and she can be contacted at ISalazar@energy.state.ca.us or (916) 657-4046. 

Driving Solo in CA Carpool Lane: Certain CNG vehicles can drive in carpool lanes with only one passenger. To qualify, the vehicle must display Department of Motor Vehicles (DMV) High Occupancy Vehicle (HOV) lane access stickers (<> Access OK). A list of qualifying vehicles and a link to the DMV form needed to get the stickers can be found on the web at www.arb.ca.gov/msprog/carpool/carpool.htm or by calling the ARB Motor Vehicle Information Hotline at (800) 242-4450.

Free Parking at City Meters: Selected vehicles powered by electricity or CNG are allowed to park at City of Los Angeles parking meters for free. An 18 month pilot program ended on September 30, 2002 and the Department of Transportation (LADOT) is working on completing an ordinance that will make the provision permanent. To qualify, the vehicle must display DMV HOV lane access stickers (<> Access OK). See above for information on qualifying vehicles.  It should be noted that all other parking restrictions - including posted time limits, no parking during street cleaning times, and peak hour tow away periods - must be obeyed.  You may also want to call LADOT’s Bureau of Parking Regulations and Special Operations at 213- 485-2466 for more information.

Electric Vehicles

Federal Income Tax Deduction: There is a federal income tax credit of up to $4,000 available for the purchase or lease dedicated electric vehicles. The required Internal Revenue Service (IRS) form 8834 "Qualified Electric Vehicle Credit" can be found at www.irs.gov. Please speak to an accountant or tax professional to verify amount and requirements before claiming the deduction. For more general information on tax incentives please visit The U.S. Department of Energy's site www.fueleconomy.gov and click on "Possible Tax Incentives."

State Rebate: The California Air Resources Board (CARB) offers a rebate on the purchase or lease of an EV through their Zero Emission Vehicle (ZEV) Incentive Program (ZIP II). This Program offers grants for up to $5,000 for full function ZEVs.  Grants are awarded on a first–come, first--served basis, while funds are available. Applicants must accept delivery of the vehicle prior to applying for the grant; a grant guarantee may be obtained 30 days prior to the scheduled delivery date.  ZIP pays the grant in one installment and the grant amount may be assigned to the dealer. If available, other federal and local incentives may augment ZIP grants.  There is information about this program at the CARB website at http://www.arb.ca.gov/msprog/zevprog/zevprog.htm. The staff person for this program is Judy Yee and she can be contacted at jyee@arb.ca.gov or by phone at  (916) 327-5610 or toll free at (866) 808-0189. 

Charger: The California Energy Commission (CEC) provides up to $750 to consumers via automakers for each EV they lease or sell through CEC's program. This incentive is matched dollar for dollar by the automaker and can be used to offset the cost related to charging equipment. Lilly Ghaffari is the staff person for this program and she can be reached at (916) 654-4650 or at lghaffar@energy.state.ca.us. There is more information about this program at the following link: http://www.energy.ca.gov/afvs/program_fact_sheets/electric_vehicle_infrastr.html .

In addition, the Los Angeles Department of Water and Power (LADWP) offers technical assistance with charger installation in the LADWP service area. You can visit their site at  http://www.greenla.com/ev/index.htm for more information or call them by phone at 800-GREEN LA (800- 473-3652) .

If you would like to see what public EV charging infrastructure is available in your area, www.cleancarmaps.com (searchable by zip code in CA, AZ, and NV) and www.greenla.com (for the LA area) are useful websites.

Driving Solo in CA carpool Lane: Certain EVs (that are allowed to go on the freeway) can drive in the carpool lane with only one passenger. To qualify, the vehicle must display Department of Motor Vehicles (DMV) High Occupancy Vehicle (HOV) lane access stickers (<> Access OK). A list of qualifying vehicles and a link to the DMV form needed to get the stickers can be found on the web at www.arb.ca.gov/msprog/carpool/carpool.htm or by calling the ARB Motor Vehicle Information Hotline at (800) 242-4450.

Free Parking at City Meters: Selected electric vehicles are allowed to park at City of Los Angeles parking meters for the posted time limit for free. An 18-month pilot program ended on September 30, 2002 and the Department of Transportation (LADOT) is working on completing an ordinance that will make the provision permanent. To qualify, the vehicle must display DMV HOV lane access stickers (<> Access OK). (See above) It should be noted that all other parking restrictions - including posted time limits, no parking during street cleaning times, and peak hour tow away periods - must be obeyed.

Hybrid Vehicles

Federal Income Tax Benefit: There is a federal income tax benefit for the purchase or lease of hybrid vehicles. The amount of the benefit depends on the particular hybrid automobile being purchased and is based on the incremental cost of each vehicle's electric motor and related equipment. The benefit is in the form of an adjustment to income (one-time deduction of up to $2,000 in the year the vehicle is first used) and you do not have to itemize deductions on your tax returns to claim it.  The official IRS release about hybrid benefits can be found at http://www.irs.gov/pub/irs-news/ir-02-64.pdf or you may call the IRS at 202-622-4000 for more information. Please speak to an accountant or tax professional to verify amount and requirements before claiming the deduction. For information more general information on tax incentives please visit The U.S. Department of Energy's site www.fueleconomy.gov and click on "Possible Tax Incentives."

State Rebate: The California Energy Commission (CEC) Efficient Vehicle Incentive Program offers a $500 rebate (in the Los Angeles area) on the purchase or lease of hybrid vehicles. The incentive is available through selected dealers at the time of purchase. The staff person for the program is Irene Salazar and she can be reached at (916) 657-4046 or ISalazar@energy.state.ca.us.  Here are some links regarding the program: http://www.consumerenergycenter.com/vehicles/incentive/default.php?ID=19  http://www.energy.ca.gov/afvs/program_fact_sheets/efficient_vehicle_program.html

Please note: The state program that allows certain vehicles to drive in the carpool lane with one passenger does not apply to hybrid vehicles. For further information, please see the attached link: http://www.arb.ca.gov/msprog/carpool/faq.htm. Because the State does not issue DMV HOV lane access stickers (<> access OK) to hybrid vehicles, they are not included in the City's Program allowing free parking at City Meters.