Alternative Fuel Vehicle (AFV) Tax Exemption

Maine provides a partial tax exemption for the purchase of clean-fuel vehicles. For original equipment manufacturer (OEM) vehicles, the incremental cost of the sale or lease of a clean-fuel vehicle for which there is an identical gasoline-powered vehicle is tax-exempt. If there is no identical vehicle powered by gasoline, 30% of the sale or lease price of an internal combustion engine clean- fuel vehicle, and 50% of the sale or lease price of a clean-fuel vehicle either fully or partly powered by electricity stored in batteries, generated by a dynamic flywheel or generated by a fuel cell on board the vehicle, is tax-exempt. The tax exemption expires January 1, 2006. Clean-fuels include, but are not limited to, compressed natural gas (CNG); liquefied natural gas; liquefied petroleum gas (LPG); hydrogen; hythane; dynamic flywheels; solar energy; alcohol fuels containing not less than 85% alcohol by volume; and electricity. (Reference Maine Revised Statutes Title 36, Sections 1752 and 1760-79)