Alternative Motor Vehicle Credit

This is an update to my blog on the hybrid vehicle credit.  That one should have included this information. The credit is not simply for hybrid cars, although that's what people generally think. The credit also includes advanced lean burn technology vehicles, qualified alternative fuel vehicles, qualified fuel cell vehicles and qualified plug-in electric drive vehiicles. The credt for any of these is taken on form 8910.

Advanced lean burn technology vehicles

This has something to do with the way the internal combustion works, but I don't begin to understand it. Your dealer can tell you whether the car qualifies as such. Right now, the only companies making cars that qualify under this section are Audi, BMW, Mercedes and Volkswagen.

Qualified alternative fuel vehicles

These are vehicles fueled solely by compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, any liquid at least 85% methanol, or a mixture of any of these and a petroleum based fuel.

Certification

The dealer can tell you whether your car qualifies and which credit it qualifies for. For certain models, there is a credit available for only a limited number of cars. For certain credits, a different amount is available as a credit for different model cars. You must own the car (leases do not count) and the original use of the car must have begun with you.