Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

4 of 6
BACKNEXT
Zap Xebra
Zap Xebra
Cost: $11,700
Tax credit: About $1,200*
The Xebra looks like a tiny car, but it has only three wheels. That matters because under the law, a car isn't a car unless it has four wheels.

The lack of a fourth wheel makes the Xebra technically more like a motorcycle, which means it doesn't need airbags or crash-safety gear, and they can ride on any highway with no maximum speed limit.

But buyers need to be aware that, despite its appearance, the Xebra doesn't offer the crash protection of even a small car.

Under the new rules, buyers of two-wheeled or three-wheeled electric vehicles like the Xebra can get a tax credit for up to 10% of the vehicles' cost or $2,500, whichever is less. Tax credits for two- and three-wheeled vehicles don't take effect until next year, but a Zap spokesman said, those who buy this year will be able to apply for the credit in 2010.

NEXT: EV Innovations Flash

Last updated February 23 2009: 1:53 PM ET
*Based on reading of legislation. IRS rules not yet finalized.
Find Your Next Car
More Galleries
The 7 biggest investment mistakes celebrities make From betting too heavily on real estate to overestimating future earnings, here are 7 of the most common money mistakes that celebrities make. More
Cotton candy, toothpicks, pet gel -- these products are all made from marijuana Legal cannabis, an estimated $5.4 billion industry, is drawing in entrepreneurs with a variety of innovative products -- from skin patches to pain relief gel for pets. More
Coolest hotel bars for business travelers CNNMoney asked two concierge services for high-flying business people what hotel bars they'd recommend in 5 major U.S. cities. Here are their favorite spots. More

Special Offer