• Skip to main content
  • Skip to primary sidebar

Auto Trends Magazine

Car reviews, industry news, & advice.

Archives for January 31, 2013

Fuel Efficient Vehicles and Federal Tax Incentives

January 31, 2013 by admin 2 Comments

If you are confused by the various federal tax incentives available on fuel efficient vehicles, you are not alone. There is a wide difference between current and past federal tax credits and with the way that these incentives are handled. For instance, a tax deduction reduces the amount of income that you are taxed while a tax credit reduces the amount of tax that you owe. Six of one and a half dozen of another? Not hardly.

Active Tax Credits

ZEV and tax incentives — Tax incentives have been offered on a variety of vehicles including diesels, hybrids (HEVs), plug-in hybrids (PHEV), electric vehicles (EV) and alternative fuel vehicles (AFV). There are no federal tax incentives for vehicles that take E85 fuel. Read on for a review of the tax incentives offered including both expired and still active tax credits.

ZEVDiesels — The German manufacturers had a lock on this segment with Audi, BMW, Mercedes-Benz and Volkswagen each producing multiple models that qualified for a federal tax credit for up to $3,400 per vehicle. Applicable models were built from 2008 with cars purchased through 2010 eligible for the credit. If you missed claiming the credit you may still have a chance to get money back by amending your tax return and filing IRS Form 8910.

Hybrids — Like diesels, hybrid models once qualified for a federal tax credit for up to $3,400. At one point vehicles from BMW, Chrysler, Ford, GM, Honda, Mazda, Mercedes, Nissan, Porsche and Toyota were eligible. Given that the program limited the incentive to the first 60,000 HEVs sold by a manufacturer, Toyota took an early exit as cars bought after Sept. 30, 2007, were not eligible. Honda hybrids sold after 2008 were not included while Ford hit its limit on March 31, 2010. Like the diesels, you may be able to amend your tax return to claim a credit that expired for all vehicles at the end of 2010.

Plug-In Hybrids — One of the newest kids on the block are PHEVs. The Chevrolet Volt got this segment going in Dec. 2010, landing its owners a $7,500 tax credit. The Fisker Karma also qualifies for the full tax credit while cars from Ford, Toyota and Honda enjoy federal tax incentives ranging from $2,500 to $3,751. These amounts vary as the tax formula is based on how long each model operates on electric-only power. To qualify for the credit, taxpayers must fill out Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit and submit that with their tax return.

Electric Vehicles — Like PHEVs, EVs come with a federal tax credit for up to $7,500. The current program kicked in back in 2010, replacing an earlier program that began with the Tesla Roadster. There are a number of EVs that qualify for the federal tax credit including models from CODA Automotive, Ford, Toyota, Nissan, Think, Mitsubishi, Smart, Wheego and Tesla Motors. Models from AMP Electric Vehicles, Electric Mobile Cars and Azure Dynamics are also eligible. Check out IRS directive IRC 30D for more information.

Alternative Fuel Vehicles — Vehicles that run on a completely different form of fuel such as hydrogen, liquified petroleum gas (LPG), liquified natural gas (LNG) or compressed natural gas (CNG) were eligible for a federal tax credit of up to $4,000. That credit was in place for six years beginning on Jan. 1, 2006, and was applied to just one model: the Honda Civic GX, a CNG-fueled vehicle. Like diesel and hybrid owners that missed the credit, you can try amending your tax return.

Tax Incentives and Notes

So, why the confusion regarding tax breaks for fuel efficient vehicles? Credit the changing laws on the federal level as well as state incentives that may also come into play. If you are still not sure what tax incentives are in place where you live, your state department of motor vehicle can clue you in.


See Also — Lexus: 1 Million Hybrid Vehicles Later

Filed Under: Ownership Experience Tagged With: Chevrolet Volt, ELECTRIC VEHICLE, FISKER KARMA, Ford Fusion Energi, fuel efficient vehicle, IRS, tax credit, tax deduction, tax incentive, Toyota Prius

Primary Sidebar

Recent Posts

  • Cadillac to Ditch Latest Naming Convention
  • Bigger Yet: 2021 Chevrolet Tahoe and Suburban SUVs
  • Value Leader: 2020 Volvo XC40
  • The History of the Toyota Sequoia
  • Highlights of the 2020 Ford Ranger

Recent Comments

  • AutoNews: Cadillac to ditch alphanumerics in EV transition - Page 2 on Not Again! Cadillac’s Naming Convention Adds a New Designation
  • Cadillac to Ditch Latest Naming Convention — Auto Trends Magazine on Not Again! Cadillac’s Naming Convention Adds a New Designation
  • Bigger Yet: 2021 Chevrolet Tahoe and Suburban SUVs — Auto Trends Magazine on By the Inches:
    Chevrolet Tahoe v. Chevrolet Suburban
  • Bigger Yet: 2021 Chevrolet Tahoe and Suburban SUVs — Auto Trends Magazine on Off-Road Prowess: GMC Sierra AT4
  • Bigger Yet: 2021 Chevrolet Tahoe and Suburban SUVs — Auto Trends Magazine on 7 Facts About the 2020 Nissan Armada

Archives

  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • September 2009
  • August 2009
  • July 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • February 2009
  • January 2009
  • December 2008
  • November 2008
  • October 2008
  • September 2008
  • August 2008
  • July 2008
  • June 2008
  • May 2008
  • April 2008

Categories

  • Auto Parts
  • Auto Shows
  • Automotive Career
  • Automotive News
  • Book Reviews
  • Car Tips
  • Classics & Discontinued Models
  • Commentary
  • Concept Vehicles
  • Dealers
  • Engineering & Technology
  • Fun News
  • Maintenance & Repairs
  • Motorsport
  • New Car Reviews
  • New Models
  • Ownership Experience
  • Product Reviews
  • Special
  • Specifications

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

New!
Check out our Jobs Board!

via GIPHY

Subscribe to Auto Trends

Subscribe in a reader

Social Media

Visit our social media pages:
Facebook
Twitter
Google+
Pinterest

Where is Matt Currently Published?

The Carolinian (new car reviews)
NAPA Know How Blog
On the Road Again

Pages

  • About
  • Automotive Brochures
  • Contact
  • Industry Jobs
  • Write
    • Style Guide

Categories

Recent Posts

  • Cadillac to Ditch Latest Naming Convention
  • Bigger Yet: 2021 Chevrolet Tahoe and Suburban SUVs
  • Value Leader: 2020 Volvo XC40
  • The History of the Toyota Sequoia
  • Highlights of the 2020 Ford Ranger
  • The Statement-Making Lincoln Aviator
  • 5 Forgettable Cars From the 1980s
  • How to Jump-Start Your Car
  • 5 Forgettable Cars From the 1970s
  • Buying Guide: 2020 Kia Sedona
  • Buying Guide:
    2020 Jeep Grand Cherokee
  • Tiny or Small? Your Choice:
    Chevrolet Spark or Chevrolet Sonic.
  • 7 Facts About the 2020 Nissan Armada
  • Highlights of the 2020 Ford EcoSport
  • Hyundai’s 18K Venue SUV
  • Lexus GX:
    The Good, the Bad, and the Ugly
  • Highlights of the
    2020 Nissan Rogue Sport
  • By the Inches:
    Chevrolet Tahoe v. Chevrolet Suburban
  • Up Next: Ford-Volkswagen Tie-up?
  • SUV Smackdown: Fiat 500L v. Fiat 500X
  • When is the Best Time to Buy a Car?
  • What Everyone Ought to Know About Selling a Car
  • Diminutive SUV: Hyundai Venue
  • Should I Buy a Lexus NX or a Lexus RX?
  • Rolling Classic: 2020 Dodge Charger
  • 10 Things We Like About the 2020 Subaru Legacy
  • Jeep Gladiator Fun Facts
  • Refreshed 2021 Chevrolet Colorado Breaks Cover
  • We Bid the Fourth-Generation Cadillac Escalade a Fond Farewell
  • What’s Next for the Subaru BRZ?
  • Highlights of the 2020 Toyota Sienna
  • How to Get the Most Auto Insurance Coverage for the Money
  • 4 Powertrains & the 2020 Ford Escape
  • The Refreshed 2020 BMW X1
  • Introducing the 2020 Chrysler Voyager
  • Cool Design: Hyundai Elantra Sport
  • Nissan Trucks: Moving Forward
  • The Incomparable Jeep Cherokee
  • By the Numbers: 2020 Honda Accord
  • Highlights of the 2020 Hyundai Accent
  • N Line Debut: 2019 Hyundai Elantra GT
  • At a Glance: 2020 Toyota Corolla Sedan
  • Highlights of the 2020 Kia Sedona
  • Introducing the All-New Cadillac CT4
  • Rivian Attracts Another Investor;
    More to Follow?
  • What You Must Do Following a Car Accident
  • Highlights of the 2020 Nissan Rogue
  • The Head-Turning, Attention-Getting Hyundai Palisade
  • The Innovative 2019 Audi Q8
  • About the 2020 Lincoln Aviator
January 2013
S M T W T F S
« Dec   Feb »
 12345
6789101112
13141516171819
20212223242526
2728293031  

Copyright © 2019 · News Pro on Genesis Framework · WordPress · Log in