Qualified Alternative Fuel Motor Vehicle (QAFMV) Tax Credit

Expired: 12/31/2010

A tax credit is available toward the purchase of QAFMVs, which may be either new, original equipment manufacturer vehicles or vehicles that have been repowered by an aftermarket conversion company to operate on an alternative fuel. Qualifying alternative fuels are those powered by natural gas, liquefied petroleum gas, hydrogen, and fuel containing at least 85% methanol. The vehicle must be placed into service as an alternative fuel vehicle on or after January 1, 2006. Unused credits that qualify as general business tax credits, as defined by the IRS, may be carried backward one year and carried forward 20 years. Vehicle manufacturers must follow the procedures as published in Notice 2006-54 in order to certify to the Internal Revenue Service (IRS) that a vehicle meets the requirements to claim the QAFMV credit and confirm the allowable credit with respect to that vehicle. See the IRS QAFMV website for the current list of qualified vehicles and credits. For more information, see IRS Form 8910, which is available via the IRS website. This tax credit expires December 31, 2010. (Reference 26 U.S. Code 30B)

Point of Contact
U.S. Internal Revenue Service
Phone: (800) 829-1040

Jurisdiction: Federal

Type: Incentives

Agency: U.S. Internal Revenue Service

Enacted: Aug 8, 2005

Technologies: Aftermarket Conversions, Hydrogen Fuel Cells, Natural Gas, Propane (LPG)

See all Federal Laws and Incentives.