Light-Duty Hybrid Electric Vehicle (HEV) and Advanced Lean Burn Vehicle Tax Credit

Expired: 12/31/2010

A tax credit is available for qualified light-duty HEVs and advanced lean burn technology vehicles placed into service after December 31, 2005. The Internal Revenue Service (IRS) must first acknowledge the manufacturers' certifications of qualified vehicles and credit amounts, which are determined using a formula that accounts for improved fuel economy and lifetime fuel savings potential. The credit begins to phase out in the second quarter following the calendar quarter in which at least 60,000 of a manufacturer's qualifying HEVs and/or lean burn passenger automobiles and light trucks have been sold. See the IRS Qualified Hybrid Vehicles and IRS Qualified Advanced Lean Burn Technology Vehicles websites for the current list of qualified vehicles, credits, phase-out schedules, and required forms. 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

Amended: Aug 4, 2008

Technologies: HEVs, PHEVs

See all Federal Laws and Incentives.