In the UK we’re used to tax reprieves for driving more environmentally friendly vehicles. It’s an incentive that seems to have made an impact on our buying habits - and now the US is following our lead.

From January onwards, vehicles that are capable of achieving 40 miles per gallon or more, or use alternative fuels, will be exempt from Washington State’s sales tax and the 0.3 per cent motor vehicle sales tax.

The reprieve will apply to new passenger cars, light-duty trucks and medium-duty passenger vehicles that run on alternative fuels including propane, hydrogen, natural gas or electricity; or that use hybrid technology and have an estimated EPA highway mileage rating of at least 40mpg.

The exemption will apply to both payments and deposits made towards the purchase of a qualifying vehicle before January 1, 2009, as long as the vehicle is registered, titled and delivered to the purchaser after that date.

In addition, the deal also applies to both lease and out-of-state purchases. It will also be applicable to new cars that sellers convert into qualifying vehicles prior to or during the sale.

The tax break was actually approved by legislature in 2005, but wasn’t expected to come into place until next year. It will last until the end of 2010.

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