New Jersey proposes tax break for hybrid vehicles
Joining other states who offer incentives to those who purchase hybrid vehicles, New Jersey is proposing an exemption for state sales tax. ...

States such as Connecticut have given exemptions to hybrids getting at least 40 mpg until July 1, 2008. Other states have offered tax rebates (i.e. Pennsylvania). If you're looking to buy a new hybrid, you should look for local and state incentives before buying.
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The Assembly Transportation and Public Works Committee on Thursday endorsed a plan to exempt all hybrid and certain highly fuel efficient vehicles from the state sales tax.