Fact #683: July 11, 2011
Federal Tax Credits for the Purchase of Advanced Technology Vehicles
The Federal Government has encouraged the use of different transportation fuels by allowing tax credits on vehicle purchases. The purchase of a traditional (non-plug-in) hybrid vehicle was eligible for a tax credit of up to $3,400 from 2005 through 2010. Diesels, which are more efficient than gasoline vehicles, were eligible for a similar tax credit, as were alternative-fuel vehicles. All of those credits were discontinued at the end of calendar year 2010. Now, electric vehicles and plug-in hybrid-electric vehicles are the only ones for which a tax credit is available – up to $7,500. To find out more about these tax credits, go to the IRS website, or FuelEconomy.Gov.
|Vehicle Type||Calendar Year in which
the Vehicle was Purchased
|Maximum Credit Amount||Vehicles Currently Eligible for a Tax Credit|
|Plug-in Hybrid-Electric Vehicles||2010 - on*||$7,500||2011 Chevrolet Volt|
|Electric Vehicles||2009 - on*#||$7,500||2010 Coda Sedan|
|2011 Nissan Leaf|
|2011 Smart For Two|
|2008-2010 Tesla Roadster|
|2011 Wheego LiFe|
|Hybrids||2005 - 2010||$3,400||Purchases made after
December 31, 2010
are not eligible for the tax credit.
|Diesels||2005 - 2010||$3,400|
|Compressed Natural Gas||2005 - 2010||$3,400|
|Liquefied Natural Gas||2005 - 2010||$3,400|
|Liquefied Petroleum Gas||2005 - 2010||$3,400|
|Hydrogen||2005 - 2010||$3,400|
|M85 (85% Methanol)||2005 - 2010||$3,400|
Source: U.S. Department of Energy and U.S. Environmental Protection Agency, www.fueleconomy.gov website, June 2011.