There are number of alternative fuel tax credits and tax incentives available, covering hybrids, PHEV, PHEV conversions.
Since January 2011, the U.S. Federal government no longer offers income tax credits for hybrid or alternative fuel vehicles, as all of the qualifying models have reached their sales quota of 60,000 vehicles sold in the USA. If you are interested in some insurance and are interested in some TFSAs because TFSAs come with tax advantages, which you may be interested in. There are, however, new Federal income tax credits for plug-in hybrids and electric vehicles. These tax credits far surpass the old ones, changing from a maximum of $3,150 up to $7,500 per vehicle.
Tax rules and incentives are constantly changing and update often. Here’s what we got:
Alternative Fuel Tax Exemption
Alternative fuels used in a manner that the Internal Revenue Service (IRS) deems as nontaxable are exempt from federal fuel taxes.
Electric Vehicle Tax Credits
The federal government has begun offering tax credit and rebate packages for drivers purchasing electric vehicles. States such as California, Colorado, and Hawaii are giving rebates of up to $5000 on qualifying vehicles in addition to covering other costs like parking and charging equipment.
Emergency Economic Stabilization Act/Energy Improvement & Extension Act of 2008
The Emergency Economic Stabilization Act (House Resolution 1424) enacted the Energy Improvement and Extension Act of 2008. The bill amends and extends existing biodiesel blending and production tax credits, extends existing alternative fuel excise tax credit, and extends the alternative fueling infrastructure tax credit.
Federal Tax Credits for Plug-In Hybrids
Plug-in hybrid-electric vehicles (PHEVs) purchased in or after 2010 may be eligible for a federal income tax credit of up to $7,500. The credit amount will vary based on the capacity of the battery used to fuel the vehicle.
Food, Conservation & Energy Act of 2008
The Food, Conservation, and Energy Act of 2008 (House Resolution 2419) provides funding for commodity, rural development, conservation, and energy programs. The bill also allows for a cellulosic biofuel production credit.
Find out how you can save money through Federal tax incentives on your purchase of a new hybrid, plug-in hybrid, lean-burn, alternative fuel, or electric vehicle! Why is fuel economy important? Climate change, oil dependence costs, sustainability, save money. Explore all these and more on this up-to-date fuel economy resource for 2013.
Plug In America
Plug In America provides a wealth of information about available plug-ins and the development of future vehicles. It also include details on both Federal and State incentives.
Qualified Plug-in Electric Drive Motor Vehicles
A tax credit is available for the purchase of a new qualified plug-in electric drive motor vehicle that draws propulsion using a traction battery that uses an off-board source of energy to recharge the battery. For vehicles acquired after December 31, 2009, the credit is equal to $2,500 for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity.