Senator Charles J. Fuschillo, Jr. recently announced that the legislation he sponsored to provide tax exemptions and credits for purchases of alternative fuel vehicles, including qualified hybrid vehicles, was recently signed into law by Governor George Pataki. A hybrid vehicle is one that uses a combination of gasoline and electric motors as a way to increase gas mileage and cut emissions.

According to Fuschillo, the legislation will exempt $3,000 of the purchase price of certain qualifying hybrid vehicles from state and local sales taxes, and is intended to cover so-called "incremental costs" - the difference between the cost of a conventionally-powered vehicle and a similar hybrid. In addition, a $2,000 personal income tax or corporate tax credit may also be received by consumers for the purchase of a hybrid vehicle.

"The signing of this legislation into law will be extremely helpful in reducing pollution while providing an excellent incentive for consumers to purchase hybrid and electric cars," said Fuschillo, who recently had a chance to test drive the Honda Civic Gasoline-Electric Hybrid and feels its performance is as good as that of a gasoline powered car.

"Hybrid vehicles use emerging technology in a way that can benefit all of us by improving the quality of the air that we breathe," Fuschillo said. "These tax incentives will help make these innovative, environment-friendly vehicles more affordable."

Fuschillo announced that the Senate passed legislation to eliminate the requirement that counties throughout the state repay state Medicaid funds previously advanced to them. This action would save Nassau and Suffolk Counties more than $29 million.

"Medicaid spending is the largest component of county budgets. With Medicaid spending increasing, this measure will help local governments address their fiscal challenges," said Fuschillo.

According to Fuschillo, the state has advanced funds to assist counties in addressing the costs associated with the conversion of certain mental health services to Medicaid since 1992. Rising expenses associated with existing services and growing enrollments in state health plans have led to increases in Medicaid costs. The passing of this legislation would provide fiscal relief for Nassau and Suffolk Counties as well as free up funds for the upcoming budget year.

"If enacted, this measure would provide welcome relief to Nassau and Suffolk Counties in planning their upcoming budgets," said Fuschillo, "while ensuring Medicaid services are not compromised."

Currently, this legislation awaits the approval of the Assembly.