Alternative Motor Vehicle Credit
The Energy Policy Act of 2005 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. The credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying
vehicle is leased to a consumer, the leasing company may claim the credit. Many currently available hybrid vehicles
may qualify for the tax credit. Read more...
