Alternative Fueled Vehicles Federal & State Tax Credits
Federal Tax Credits for Natural Gas Vehicles
Dedicated Natural Gas Vehicles qualify for a tax credit to cover up to 80% of the conversion cost. The credit value is a sliding scale based upon the weight of the vehicle, and how clean the emissions are. The tax credit weight class on a vehicles is called the gross vehicle weight rating (GVWR). Most of our Ford vehicles, such as the Ford Focus, Fusion, and F-150 all qualify in the weight class of a “light duty” vehicle. Other Ford vehicles such as F-250 and F-350 trucks qualify as “medium duty” vehicles. The tax credit will cover the conversion cost with a maximum allowed credit for a particular weight class of vehicle and either 80% or 50% of that maximum amount depending upon the emissions rating. In a light duty vehicle, the vehicle will typically qualify for an 80% tax credit only if the vehicle meets the most stringent emissions rating of EPA Tier 2 Bin 2. The maximum amount allowed for a credit on a “light duty” vehicle is $5,000. If a light duty vehicle meets the most stringent emissions rating, then it qualifies for 80% of $5,000, which is $4,000. If the “light duty” vehicle does not meet the most stringent emissions rating then it will qualify for 50% of $5,000, which is $2,500. Because our dedicated Ford Focus meets the most stringent emissions level of EPA Tier 2 Bin 2 emissions, it qualifies for the maximum tax credit available for a light duty vehicle of $4,000.
Vehicle Size |
Incremental
Cost Cap |
50% Credit |
80% Credit |
| 8,500 GVWR or less |
$5,000 |
$2,500 |
$4,000 |
| 8,501 - 14,000 GVWR |
$10,000 |
$5,000 |
$8,000 |
| 14,001 – 26,000 GVWR |
$25,000 |
$12,500 |
$20,000 |
| 26,001 GVWR and heavier |
$40,000 |
$20,000 |
$32,000 |
State Tax Credits are available in the following states.
State tax credits function, in most cases, independently of the federal tax credits. So, the buyer can apply for the federal tax credit and also apply for the state tax credit. Combining federal and state tax credits can make for a substantial total tax credit amount.
For More Information click on your states link.
Colorado
AFV Tax Credit is available ranging from $1,947 to $ 13,779 depending on vehicle weight
http://www.afdc.energy.gov/afdc/progs/state_summary.php/CO
Georgia
AFV Tax Credit is available up to $ 2500
http://www.afdc.energy.gov/afdc/progs/state_summary.php/GA
Kansas
AFV Tax Credit is available ranging from $2400 to $40,000 depending on vehicle weight
http://www.afdc.energy.gov/afdc/progs/state_summary.php/KS
Louisiana
AFV Tax Credit is available worth 20% of the cost of converting the vehicle.
http://www.afdc.energy.gov/afdc/progs/state_summary.php/LA
Montana
AFV Tax Credit is available for 50% of the cost of converting the vehicle up to $ 1000 depending on the weight of the vehicle.
http://www.afdc.energy.gov/afdc/progs/state_summary.php/MT
Oklahoma
AFV Tax Credit is available for 50% of the cost of converting the vehicle and also for 10% of the vehicle cost up to $1,500.
http://www.afdc.energy.gov/afdc/progs/state_summary.php/OK
Oregon
AFV Tax Credit is available in the amount of $750 for the cost of converting the vehicle.
http://www.afdc.energy.gov/afdc/progs/state_summary.php/OR
South Carolina
AFV Tax Credit is available worth 20% of the federal tax credit.
http://www.afdc.energy.gov/afdc/progs/state_summary.php/SC
Utah
AFV Tax Credit is available for 50% of the cost of converting the vehicle up to $3,000.
http://www.afdc.energy.gov/afdc/progs/state_summary.php/UT
Washington
AFV are exempt from sales tax.
http://www.afdc.energy.gov/afdc/progs/state_summary.php/WA
