Tax Credit for Hybrid, Electric and Alternative Fuel Vehicles
Oct 12 2008 Individuals and businesses who buy a brand new hybrid, electric or diesel fuel vehicle can take advantage of the “Alternative Motor Vehicle Credit.” This tax credit applies to new cars and trucks that are certified for the credit by the IRS. Alternative Motor Vehicle Tax Credit Qualifying vehicles purchased on or after January 1, 2006, will be eligible for a tax credit ranging from $400 to $4,000 based on fuel economy. The alternative motor vehicle tax credit is actually a combination of two separate tax credits. The math is complicated, and fortunately you won’t have to calculate it. The car manufacturers and the IRS will certify the tax credit amount of qualifying vehicles. Phaseout of the Alternative Motor Vehicle Tax Credit The alternative motor vehicle tax credit may be short-lived, depending on consumer demand for the new cars powered by fuel-efficient hybrid, electric, and clean diesel motors.
