Chicago Mayor Richard Daley launched a new Green Taxi Program Friday that will encourage the taxi industry to purchase cost-effective hybrid and alternative fuel vehicles. More green cabs will help the city move closer to reaching carbon emission goals set out in its Chicago Climate Action Plan, while also improving air quality.

The Green Taxi Program uses $1 million in funding to provide a $2,000 rebate for every new hybrid taxi and between $9,000 and $14,000 for every alternative fuel car like those powered by propane or natural gas.

"The Green Taxi Program provides an incentive to the taxi industry to reduce carbon emissions. Alternative fuel and hybrid taxis provide numerous benefits including lower fuel costs for drivers and cutting air pollution," said Norma. I. Reyes, Commissioner of the Department of Business Affairs and Consumer Protection at an Earth Day Celebration in Daley Plaza. "The City of Chicago is committed to supporting these efforts and providing financial and operational incentives to offset the higher initial cost price of these vehicles."

The funding comes from a Clean Cities grant from the US Department of Environment, through the American Recovery and Reinvestment Act.

To find out more about the program or to download application forms click here.