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Tax Credit for Alternative Fuel Vehicles
So you were lucky enough, I mean smart enough, to purchase a Baie-Comeau alternative fuel vehicle. Good for you, you are not only saving on the cost of gas, and decreasing the size of your carbon footprint, but you actually have a tax credit coming as well (as if you didn't already know). Well, spend it wisely.
The Internal Revenue Service (IRS) has provided guidance on a process that manufacturers can use to certify the amount of credit the purchaser of a hybrid or lean burn vehicle can claim. Taxpayers who are purchasing these vehicles will be able to rely on the manufacturer’s certification when they claim the credit on their tax return.
Hybrid vehicles have drive trains powered by both an internal combustion engine and a rechargeable battery. Many currently available hybrid vehicles will qualify for the tax credit. Please visit the Summary of the Credit for Qualified Hybrid Vehicles web page for additional information. This page is frequently updated.
The Energy Policy Act of 2005 (.PDF document) replaced the clean-fuel burning deduction with a tax credit. A tax credit is subtracted directly from the total amount of federal tax owed, thus reducing or even eliminating the taxpayer’s tax obligation. The tax credit for hybrid vehicles applies to vehicles purchased or placed in service on or after January 1, 2006. Please visit the Hybrid Cars and Alternative Motor Vehicles web page for additional information about vehicles purchased or placed in service.
Finally, you may wish to visit the Fuel Efficient Vehicle Tax Incentives Information Center to find out how you can save money through federal tax incentives on your purchase of a new hybrid, lean-burn, alternative fuel, and electric vehicles.
Please note: To view and print .PDF documents, you must use the Adobe Reader software, which is available for download without charge.
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