Country:United States
Policy status:In Force
Date Effective:2006
Policy Type:Economic Instruments>Fiscal/financial incentives>Taxes
Climate Change Policy Targets:Energy Sector, Transport
Agency:Department of Treasury, Internal Revenue Service (IRS)
Climate Change Description:The QAFVM credit is one of the Internal Revenue Service's Alternative Vehicle Tax Credits established in the Energy Policy Act 2005, Section 1341. It provides a tax credit to buyers of new alternative fuel vehicles placed in service as an alternative fuel vehicle after 1 January 2006 (the vehicle which may be either new, original equipment manufacturer vehicles or vehicles that have been repowered by an aftermarket conversion company to operate on an alternative fuel). The legislation provides for a tax credit equal to 50% of the incremental cost of the vehicle, plus an additional 30% of the incremental cost for vehicles with near-zero emissions (SULEV or Bin 2 for vehicles <14,001 lb GVWR). The credit is available on qualified vehicles that run on natural gas (compressed and liquid), propane, hydrogen and any liquid at least 85 percent methanol by volume; and is available on the purchase of light-, medium-, and heavy-duty vehicles. The credit is capped based on vehicle weight as follows:
  • USD 5,000: 8,500 GVWR or lighter 
  • USD 10,000: 8,501 - 14,000 GVWR 
  • USD 25,000: 14,001 - 26,000 GVWR 
  • USD 40,000: 26,001 GVWR and heavier
Related policies:New Qualified Hybrid Motor Vehicle Credit

Last modified: Wed, 29 Aug 2012 14:24:04 CEST