Nissan North America Inc. says the new ’07 Altima Hybrid sedan begins at $24,400, undercutting the Toyota Camry Hybrid, with which it shares technology, by $1,800.

The new Altima Hybrid is on sale now at Nissan dealers in California, Connecticut, Maine, Massachusetts, New Jersey, New York, Rhode Island and Vermont. It is expected to be sold only in those states for the time being as they have more stringent emissions regulations than the rest of the U.S.

The Altima Hybrid matches a 2.5L 4-cyl. gas engine and continuously variable transmission to an electric motor. Estimated fuel economy is 42 mpg (5.6 L/100 km) city and 36 mpg (6.5 L/100 km) highway.

Nissan says the Altima Hybrid qualifies for the Alternative Motor Vehicle Credit of $2,350 certified by the U.S. Internal Revenue Service.