Alternative Fuel Tax Incentives - In an effort to reduce America’s dependence on foreign oil, reduce urban emissions and reduce greenhouse gases, the federal government, state governments and even regional and local governments have implemented incentives to encourage the purchase and use of NGVs. These include tax deductions/credits, reduced license fees, reduced vehicle sale taxes, and lower registration fees. Some states also permit certain alternative fuel vehicles to operate in high occupancy vehicle (HOV) lanes during peak rush-hour periods.
Federal NGV Tax Incentives - Income Tax Credits for Alternative Fuel Vehicles - PL 109-58 provides for an income tax credit for the purchase of a new, dedicated alternative fuel vehicle of 50 percent of the incremental cost of the vehicle, plus an additional 30 percent if the vehicle meets certain tighter emission standards. These credits would range from $2,500 to $32,000 depending on the size of the vehicle. The credit is effective on purchases made after December 31, 2005 and expires on December 31, 2010.
State NGV Incentives - Click here to view current tax incentives for your State and Federal
Vehicle Federal Tax Credit
Dedicated alternative fueled vehicles qualify for up to 80% of the incremental cost. Credit value is on sliding scale based on vehicle weight.
• Light-Duty vehicles up to 8,500 lbs can qualify for up to $4,000;
• Medium-Duty vehicles up to 14,000 lbs qualify up to $8,000;
• Medium-Heavy-Duty vehicles up to 26,000 lbs qualify for up to $20,000;
• Heavy-Duty vehicles over 26,000 lbs qualify for up to $32,000.
Solar Power Tax Incentives:
Federal Investment Tax Credit - For solar systems installed from January 2006 through December 2007, the federal government offers an Investment Tax Credit (ITC) of 30% of the net system cost for commercial systems. For the same time period, residential systems are also eligible for an ITC of 30% of the net system cost, up to a ceiling of $2,000. 5-Year Accelerated Depreciation Schedule - The federal Internal Revenue Code (IRC) has special depreciation provisions for solar systems. They can be depreciated on a 5-year accelerated schedule, or on the regular depreciation schedule. The depreciable basis is calculated as the system cost minus one-half of any federal tax credit, or 85% of the system cost. These provisions are found in IRC section 179.
State Incentives - Click here to few your state incentives.
