Being an early(ish) adopter of plug-in hybrid technology paid off for me, because I was able to get tax credits from the federal government ($4,500) and state of California, where I live ($1,500). These credits brought the cost of my car down by $6,000 — and when I looked at cars I could buy for $6,000 less, they were smaller, had fewer features, or had bad to so-so reviews. The good news? The federal tax credit and California credits are still available, and even higher for fully electric cars, though if you make more than $135,000 (or $200,000 filing jointly) you do not qualify. The cap on the retail price has changed also, to $45,000 for sedans and $60,000 for SUVs. (So forget Teslas.)
Related: Electric Cars Cheaper Than a Tesla