Action on New Jersey legislation that would exempt cars that get more than 40 miles per gallon and energy-efficient appliances from the state's 7 percent sales tax now appears unlikely, according to the newspaper. The two-year proposal would have cost about $79 million while the state faces an $8 billion budget deficit.
Connecticut's nearly 20-year-old tax break for energy-efficient vehicles was ended in 2010. The state estimated it was losing up to $2 million each year and is dealing with a $3 billion deficit, USA Today reports.
In Washington, a state sales tax exemption for hybrid and high-efficiency cars was allowed to expire in January. In South Carolina, a $2,000 tax credit for purchasing a hybrid ended. In New Mexico, a tax break for high-mileage vehicles was eliminated in 2009, according to the newspaper.
On the federal level, a tax credit for up to $3,400 expired in December 2010. Some estimates have hybrid cars making up 2.5 percent of the overall auto market, USA Today reports.
