Alternative Fuel Vehicle (AFV) Tax Deduction

The Wisconsin Department of Revenue offers a state AFV tax deduction identical to the federal AFV tax deduction. Taxpayers who placed AFVs into service in 2002 and 2003 are entitled to the full deduction. The deduction is reduced by 25% for vehicles placed in service in 2004, by 50% for vehicles in 2005, and by 75% for vehicles in 2006. No deduction is available for clean fuel vehicles placed in service in 2007. The full deduction is $50,000 for any truck or van with a gross vehicle weight rating (GVWR) of at least 26,000 pounds (lbs.) or a bus with seating capacity of at least 20 adults. The deduction is $5,000 for a truck or van with a GVWR greater than 10,000 lbs. and $2,000 for vehicles under 10,000 lbs.