Country:United States
Policy status:In Force
Date Effective:2006
Policy Type:Economic Instruments>Fiscal/financial incentives>Tax relief
Policy Target:Transport>Passenger, Transport
Agency:Internal Revenue Service (IRS)
Legal References:American Recovery and Reinvestment Act of 2009,Sec. 1143

Section 1341 of the Energy Policy Act of 2005 provides a tax credit to buyers of new alternative fuel vehicles placed in service as an alternative fuel vehicle after 1 January 2006. 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 less than 14,001 lb gross vehicle weight rating or GVWR). The credit is available on the purchase of light-, medium, and heavy-duty vehicles and fuel-cell, hybrid, and dedicated natural gas, propane, and hydrogen vehicles. Light-duty lean burn diesel vehicles are also eligible. The tax 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 This tax credit has several parts: 1) The Qualified Fuel Cell Vehicles Tax Credit (or Fuel Cell Motor Vehicle Tax Credit, as the DOE website) 2) The Qualified Alternative Fuel Motor Vehicles (QAFMV) Tax Credit 3) The Advanced Lean-Burn Technology Vehicles Tax Credit 4) The Qualified Hybrid Vehicles Tax Credit (3 and 4 are combined as one: the "Light-Duty Hybrid Electric Vehicle (HEV) and Advanced Lean Burn Vehicle" Tax Credit, as on the DOE website) 5) The Heavy Hybrid Vehicles Tax Credit (or Heavy-Duty Hybrid Electric Vehicle (HEV) Tax Credit, as on the DOE website) - which expired in December 2009

Last modified: Thu, 16 Feb 2017 19:58:33 CET