United States (Federal) Individual Vehicle Purchaser/Driver
Renewable Energy Systems and Energy Efficiency Improvements Grant
Competitive grant funding and guaranteed loans are available from the U.S. Department of Agriculture Office of Rural Development's Section 9006 Energy Program for the purchase of renewable energy systems and energy improvements for agricultural producers and small rural businesses. Qualified projects must occur in a rural area and implement technology that is pre-commercial or commercially available and replicable. Research and development does not qualify. Applicants must provide at least 75% of eligible project costs, and grant assistance to a single individual or entity may not exceed $750,000. Eligible projects include biofuels, hydrogen, and energy efficiency improvements, as well as solar, geothermal, and wind. The Section 9006 Energy Program has not been funded for Fiscal Year 2008. For more information, visit the Section 9006 Program Web site, and contact the appropriate State Rural Development Office. (Reference 7 U.S. Code 8106)
Point of Contact
Office of Rural Development
U.S. Department of Agriculture
Phone (202) 690-4730
http://www.rurdev.usda.gov/rd/energy/
Clean Cities
The mission of Clean Cities is to advance the energy, economic, and environmental security of the United States by supporting local initiatives to adopt practices that reduce the use of petroleum in the transportation sector. Clean Cities carries out this mission through a network of more than 80 volunteer coalitions, which develop public/private partnerships to promote alternative fuels and advanced vehicles, fuel blends, fuel economy, hybrid vehicles, and idle reduction. Clean Cities provides information about financial opportunities, coordinates technical assistance projects; updates and maintains databases and Web sites, and publishes fact sheets, newsletters, and related technical and informational materials. For more information, visit the Clean Cities Web site.
Point of Contact
U.S. Department of Energy
Phone (800) 342-5363
Fax (202) 586-4403
http://www.energy.gov
Light-Duty Hybrid Electric Vehicle (HEV) and Advanced Lean Burn Vehicle Tax Credit
A tax credit is available for qualified light-duty HEVs and advanced lean burn technology vehicles placed in 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 Hybrid Cars and Advanced Lean Burn Technology Vehicles Web site 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
http://www.irs.gov/
Fuel Cell Motor Vehicle Tax Credit
A tax credit of up to $8,000 is available for the purchase of qualified light-duty fuel cell vehicles. After December 31, 2009, the credit is reduced to $4,000. Tax credits are also available for medium- and heavy-duty fuel cell vehicles; credit amounts are based on vehicle weight. Vehicle manufacturers must follow the procedures as published in Notice 2008-33 (PDF 30KB) in order to certify to the Internal Revenue Service that a vehicle meets certain requirements to claim the fuel cell vehicle credit. Notice 2008-33 also provides guidance to taxpayers about claiming the credit. Form 8910 (PDF 267 KB) provides additional information and must be used to claim the tax credit. This tax credit expires on December 31, 2014. (Reference 26 U.S. Code 30B) Download Adobe Reader
Point of Contact
U.S. Internal Revenue Service
Phone (800) 829-1040
http://www.irs.gov/
Qualified Alternative Fuel Motor Vehicle (QAFMV) Tax Credit
A tax credit is available toward the purchase of QAFMVs, which may be either new, original equipment manufacturer vehicles or vehicles that have been repowered by an aftermarket conversion company to operate on an alternative fuel. Qualifying alternative fuels are those powered by natural gas, liquefied petroleum gas, hydrogen, and fuel containing at least 85% methanol. The vehicle must be placed in service as an alternative fuel vehicle on or after January 1, 2006. Vehicle manufacturers must follow the procedures as published in Notice 2006-54 in order to certify to the Internal Revenue Service (IRS) that a vehicle meets the requirements to claim the QAFMV credit and confirm the allowable credit with respect to that vehicle. See the IRS QAFMV Web site for the current list of qualified vehicles and credits. Form 8910 (PDF 267 KB) provides additional information and must be used to claim the tax credit. This tax credit expires December 31, 2010. (Reference 26 U.S. Code 30B) Download Adobe Reader
Point of Contact
U.S. Internal Revenue Service
Phone (800) 829-1040
http://www.irs.gov/
Heavy-Duty Hybrid Electric Vehicle (HEV) Tax Credit
A tax credit of up to $18,000 is available for the purchase of qualified heavy-duty HEVs with a gross vehicle weight rating of more than 8,500 pounds. Vehicle manufacturers must follow the procedures published in Notice 2007-23 to certify to the Internal Revenue Service (IRS) that a heavy-duty vehicle meets the requirements to claim the heavy-duty HEV credit and confirm the amount of the allowable credit with respect to that vehicle. See the IRS Heavy Hybrid Vehicles Web site for the current list of qualified vehicles and credits. This tax credit expires December 31, 2009. (Reference 26 U.S. Code 30B)
Point of Contact
U.S. Internal Revenue Service
Phone (800) 829-1040
http://www.irs.gov/
Emergency Economic Stabilization Act/Energy Improvement and Extension Act of 2008
The Emergency Economic Stabilization Act (House Resolution 1424) was signed by President Bush, enacting the Energy Improvement and Extension Act of 2008. The bill amends and extends existing biodiesel blending and production tax credits, extends existing alternative fuel excise tax credit, and extends the alternative fueling infrastructure tax credit. The bill also creates a new tax incentive toward the purchase of qualified plug-in hybrid electric vehicles, based on vehicle weight and battery capacity. Additionally, qualified idle reduction devices are exempt for heavy-duty truck retail excise taxes.
Qualified Plug-In Electric Drive Motor Vehicle Tax Credit
A tax credit is available for the purchase of a new qualified plug-in electric drive motor vehicle that draws propulsion using a traction battery that has at least four kilowatt hours of capacity, uses an external source of energy to recharge the battery, has a gross vehicle weight rating of up to 14,000 pounds, and meets specified emission standards. The minimum credit amount is $2,500, and the credit may be up to $7,500, based on each vehicle's traction battery capacity and the gross vehicle weight rating. The credit will begin to be phased out for each manufacturer in the second quarter following the calendar quarter in which a minimum of 200,000 qualified plug-in electric drive vehicles have been sold by that manufacturer for use in the U.S. This tax credit applies to vehicles acquired after December 31, 2009. Through December 31, 2011, qualified plug-in electric vehicle conversions are also eligible for a tax credit for 10% of the conversion cost, not to exceed $4,000. Additionally, a tax credit of up to 10% of the cost of qualified low-speed electric vehicles, electric motorcycles, and three-wheeled electric vehicles, not to exceed $2,500, is available through December 31, 2011. (Reference Public Law 111-5, Sections 1141-1144, and 26 U.S. Code 30D)
Point of Contact
U.S. Internal Revenue Service
Phone (800) 829-1040
http://www.irs.gov/
Idle Reduction Equipment Excise Tax Exemption
Qualified on-board idle reduction devices and advanced insulation are exempt from the federal excise tax imposed on the retail sale of heavy-duty highway trucks and trailers. The exemption also applies to the installation of qualified equipment on vehicles after the vehicles have been placed into service. For a list of eligible products and additional information about product exemption eligibility criteria, see the U.S. Environmental Protection Agency's (EPA) SmartWay Transport Idle Reduction Web site. The exemption applies to equipment that was determined by the Administrator of the EPA, in consultation with the Secretary of Energy and the Secretary of Transportation, to reduce the idling of the tractor at a motor vehicle rest stop or other location where such vehicles are temporarily parked or remain stationary. Only equipment sold on or after October 4, 2008, is eligible. For more information, see IRS Publication 510 and the instructions for IRS Form 720, which are available via the IRS Web site. (Reference Public Law 110-343, Section 206, and 26 U.S. Code 4053)
Point of Contact
Excise Tax Branch
U.S. Internal Revenue Service Office of Chief Counsel
Phone (202) 622-3130
http://www.irs.gov/
U.S. DOT to Implement Car Allowance Rebate System
President Obama has enacted the Consumer Assistance to Recycle and Save Act of 2009, which establishes an incentive program to encourage consumers to trade in older, less fuel efficient cars and trucks for newer, more fuel efficient vehicles. The U.S. Department of Transportation's (DOT) National Highway Traffic Safety Administration (NHTSA) will implement the voluntary Car Allowance Rebate System (CARS) program. Consumers may receive $3,500 or $4,500 toward the purchase or lease of a new vehicle at a participating dealership. The incentive amount depends on the type of vehicle purchased and the improvement in fuel economy of the purchase vehicle as compared to the trade-in vehicle. In general, trade-in vehicles must have a combined city/highway fuel economy rating of 18 miles per gallon (mpg) or less and must be in drivable condition, less than 25 years old, and registered and insured for the full year prior to trade-in. For passenger vehicles, the purchase vehicle must be at least 4 mpg more fuel efficient than the trade-in vehicle. For vans, sport utility vehicles, and pickups, the purchase vehicle must be at least 2 mpg more fuel efficient. NHTSA will publish rules for the program within 30 days of enactment and the program will end November 1, 2009, or when DOT exhausts the funds set aside for the program, whichever comes first.
