Connecticut Incentives and Laws

Last Updated June 2006

State Incentives

Alternative Fuel Refueling Infrastructure and Alternative Fuel Vehicle (AFV) Conversion Tax Credit

Between January 1, 1994 and January 1, 2008, a Corporation Business Tax credit is available for 50% of the following expenditures: the construction of, improvements to, or equipment for any compressed natural gas (CNG), liquefied natural gas (LNG), or liquefied petroleum gas (LPG) refueling station or an electric vehicle recharging station; and the purchase and installation of equipment used in dedicated or dual fuel CNG, LNG, LPG, or electric vehicle conversions. This credit may be carried forward for up to three years. (Reference Connecticut General Statutes 12-217i)

Point of Contact

Taxpayer Services Division
Connecticut Department of Revenue
Phone (860) 297-5962
http://www.ct.gov/drs
 

Alternative Fuel Vehicle (AFV) Tax Credit

Prior to January 1, 2008, a Corporation Business Tax credit is available for 10% of the incremental cost of purchasing a new dedicated compressed natural gas, liquefied natural gas, liquefied petroleum gas, or electric vehicle. This credit may be carried forward for up to three years. (Reference Connecticut General Statutes 12-217i)

Point of Contact

Taxpayer Services Division
Connecticut Department of Revenue
Phone (860) 297-5962
http://www.ct.gov/drs
 

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Tax Exemption

Prior to July 1, 2008, the following purchases are exempt from sales tax: new dedicated compressed natural gas (CNG), liquefied natural gas (LNG), liquefied petroleum gas (LPG), hydrogen, or electric vehicles; equipment used in dedicated or dual fuel CNG, LNG, LPG, hydrogen, or electric vehicle conversions; and equipment associated with a CNG or hydrogen filling or electric recharging station. Between October 1, 2004 and October 1, 2008, new HEVs with a U.S. Environmental Protection Agency fuel economy rating of at least 40 miles per gallon (mpg) are also exempt from sales tax. An HEV is defined as a passenger car that 1) draws acceleration energy from two onboard sources of stored energy, which are both an internal combustion or heat engine using combustible fuel and a rechargeable energy storage system, and 2) for an HEV produced during and after model year 2004, is certified to meet or exceed the tier II bin 5 low emission vehicle classification. (Reference Connecticut General Statutes 12-412-67, 68, 69, and 115 and Senate Bill 660, 2006)

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Parking

The City of New Haven provides free on-street parking on all city streets for HEVs and AFVs registered in New Haven. HEV and AFV vehicle owners must obtain a non-transferable pass from the Department of Traffic and Parking to place on the vehicle’s dashboard or hang from the rearview mirror. AFVs and HEVs are subject to all time and other posted parking restrictions. (Reference New Haven Code of General Ordinances, Chapter 29, Article III, Division 1, Section 29-56).

Point of Contact

Department of Traffic and Parking
City of New Haven
Phone 203-946-8075
Fax 203-946-8074
http://www.cityofnewhaven.com/TrafficParking/
 

State Laws and Regulations

Vehicle Greenhouse Gas Labeling Requirement

The Commissioner of the Department of Environmental Protection (DEP) is required to work with the Commissioner of the Department of Motor Vehicles (DMV) commissioner, to (1) establish a greenhouse gas (GHG) labeling program for new motor vehicles with a gross vehicle weight rating of 10,000 pounds or less that are sold or leased in Connecticut beginning with model year 2009 and (2) educate the public about the labeling program and GHGs. Furthermore, by October 1, 2006, the DEP, in consultation with the Governor's Steering Committee on Climate Change, is required to the amount of motor vehicle GHG emission reductions needed to meet the state's GHG goals. (Reference Senate Bill 660, 2006)

Alternative Fuel Vehicle (AFV) Procurement Preference

Effective October 1, 2006, in determining the lowest responsible qualified bidder for the award of state contracts, the Commissioner of Administrative Services may give a price preference of up to 10% for the purchase of AFVs, or for the purchase of vehicles powered by fuel other than a clean alternative fuel plus conversion equipment to convert the vehicles to dual or dedicated alternative fuel use. For these purposes, "alternative fuel" means natural gas or electricity when used as a motor vehicle fuel. (Reference Connecticut General Statutes 4a-59 and House Bill 5279, 2006)

Ethanol Labeling Requirement

Any motor vehicle fuel sold at retail containing more than 1% ethanol must be labeled according to specifications established by the Commissioner of Consumer Protection, indicating the percentage of ethanol. (Reference Connecticut General Statutes 16a-15 and House Bill 5558, 2006)

Hydrogen Energy Plan

The Department of Economic and Community Development (DECD), in consultation with the Connecticut Center for Advanced Technology (CCAT), is responsible for establishing a Connecticut Hydrogen-Fuel Cell Coalition. Through this partnership, the CCAT is responsible for developing a plan for fuel cell economic development. Highlights of goals that will be detailed in the plan are as follows:

1) Facilitate the commercialization of hydrogen-based technologies and fuel cells;

2) Enhance energy reliability and security;

3) Promote the improved efficiency and environmental performance of transportation and electric generation with reduced emissions, reduced greenhouse gases, more efficient use of nonrenewable fuels, and increased use of renewable and sustainable fuels;

4) Facilitate the installation of infrastructure for hydrogen production, storage, transportation and fueling capability;

5) Disseminate information regarding the benefits of hydrogen-based technologies and fuel cells;

6) Develop strategies to retain and expand hydrogen and fuel cell industries in Connecticut; and

7) In consultation with the Department of Transportation, identify areas within the state transportation system that would benefit from the integration of potential mass transit and fleet transit locations with hydrogen or natural gas and hydrogen mixture refueling stations; and 8) Identify areas in the electric and natural gas distribution system of the state that would benefit from the development of distributed generation through hydrogen or fuel cell technology.

(Reference House Bill 5846, 2006)
 

Point of Contact

Joel M. Rinebold
Director, Energy Program
Connecticut Center for Advanced Technology
Phone (860) 291-8832
Fax (860) 291-8874
jrinebold@ccat.us
http://www.ccat.us/chfcc.htm
 

Alternative Fuel Vehicle (AFV) Acquisition and State Agency Emissions Reduction Requirements

The fleet average for cars or light-duty trucks purchased by the state must: 1) have a U.S. Environmental Protection Agency estimated fuel economy of at least 40 miles per gallon; 2) comply with state fleet vehicle acquisition requirements set forth under the Energy Policy Act of 1992 (10 CFR Part 490); and 3) obtain the best achievable fuel economy per pound of carbon dioxide emitted in its vehicle class. AFVs purchased by the state to comply with these requirements must be capable of operating on an alternative fuel that is available in the state. Law enforcement vehicles and those used for other designated special use purposes as designated by the state Department of Administrative Services are exempt from these provisions. (Reference Connecticut General Statutes 4a-67d)

Idle Reduction Requirement

School bus operators are prohibited from idling the engine of any school bus for more than three consecutive minutes when the school bus is not in motion except under the following conditions apply:

1) The school bus is forced to remain motionless because of traffic conditions or mechanical difficulties over which the operator has no control;

2) It is necessary to operate heating, cooling, safety or auxiliary equipment installed on the school bus;

3) The outdoor temperature is below 20 degrees Fahrenheit;

4) It is necessary to maintain a safe temperature for students with special needs;

5) The school bus is being repaired; or

6) The operator is in the process of receiving or discharging passengers on a public highway or public road.

(Reference Connecticut General Statutes 14-277)
 

Low Emission Vehicle Standards

The Commissioner of Environmental Protection has adopted regulations to implement the light-duty motor vehicle emission standards of the state of California for vehicles with a model year of 2008 or later. (Reference Connecticut General Statutes 22a-174g)

Alternative Fuel Taxicab Regulation

In compliance with any other regulations governing the use of taxicabs, any alternative fuel sedan or station wagon with a wheelbase of at least 102 inches may be used to provide taxicab service. (Reference Connecticut General Statutes 13b-96)

Emissions Reduction Credits

Any state mobile emission reduction credits program must allow credit for emission reductions achieved by converting a vehicle to operate on an alternative fuel when such conversions are eligible for such a credit, even if the conversion took place before the credit program began. (Reference Connecticut General Statutes 22a-174i)

Alternative Fuel Tax Exemptions

Natural gas or propane sold as a motor fuel by a public utility company prior to July 1, 2008 is exempt from the gross earnings tax on the sale of petroleum products. Also prior to July 1, 2008, petroleum products sold for use as fuel in fuel cells and propane sold for use as a fuel in motor vehicles are exempt from the petroleum gross earnings tax. Finally, between July 1, 1994, and July 1, 2008, compressed natural gas, liquefied petroleum gas, and liquefied natural gas are not subject to the motor fuels tax. (Reference Connecticut General Statutes 12-264, 12-587, and 12-458f)

Utilities/Private Incentives

Natural Gas Infrastructure and Technical Assistance

(Southern Connecticut Gas Company) and (Connecticut Natural Gas) provide technical and advisory assistance for alternative fuel refueling station construction, fleet management, and vehicle conversions. Both utilities will assist fleet operators with natural gas vehicle purchases, converting vehicles to operate on natural gas, and refueling station construction on a project-specific basis.

Point of Contact

Michael Smalec
Manager, Commercial, Industrial and Key Accounts
Southern Connecticut Gas Company/ Connecticut Natural Gas Corporation
Phone (203) 795-7748/(860) 727-3327
Fax (203) 795-7619
msmalec@soconngas.com
 

Connecticut Points of Contact: