Oregon To Drop Hybrid Tax Breaks

After giving more than 11,000 buyers of gas-electric vehicles tax credits amounting to $1,500, Oregon will drop hybrid tax breaks in favor of all-electric cars.

SALEM, Ore. (AP) -- Since 1999, Oregon has given more than 11,000 buyers of gas-electric hybrids such as the Toyota Prius tax credits amounting to $1,500.

The break has helped to make Oregon one of the top states in the nation, per capita, for hybrids on the road.

Now the state is ready to move on to all-electric cars and drop the tax credit for hybrid buyers.

The House passed a bill Thursday to give such credits to people who buy all-electric cars, called "plug-ins."

It also would make electric car manufacturers eligible for the state business energy tax credit.

The bill is a priority for Gov. Ted Kulongoski, who has promoted Oregon to electric car companies, including Nissan and Think, as a place to consider for a manufacturing site.

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