United States (Federal) Incentives and Laws

Light-Duty Hybrid Electric Vehicle (HEV) and Advanced Lean Burn Vehicle Tax Credit

A tax credit is available for qualified light-duty HEVs placed in service after December 31, 2005. The Internal Revenue Service (IRS) must first acknowledge the manufacturers' certifications of qualified HEVs and credit amounts, which are determined using a formula that accounts for improved fuel economy and lifetime fuel savings potential. A tax credit is also available for qualified advanced lean burn technology vehicles certified by the IRS. 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 Qualified Hybrid 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/