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Denmark, Aarhus experiments with making light rail and bus free (but only if you own a car)
(www.tv2ostjylland.dk)
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Ideally it would be free for everybody, but this seems like a good idea, at least as a test project. Driving is so easy and convenient, there needs to be a pretty big incentive to get people out of their cars voluntarily or else they're never going to do it.
People that are already taking transit know all about transit. People that are always driving usually don't have any clue, so of course you want to cater to them specifically.
In theory, but they could just make it free for everyone during rush hour. It is effectively punishing people who don't have a car.