tax credit

Honda Brings Clarity to its Fuel Cell Plans

October 28, 2015 by admin 2 Comments

New Honda fuel cell model goes on sale first in Japan — North America and Europe will follow.

Since releasing its first delivered fuel cell model in 2002, Honda has quietly been making plans for broadening availability in line with the development of hydrogen fueling infrastructures in Japan and as well as in California.

The original FCX — Fuel Cell eXperimental — was a three-door, four-seat hatchback developed in very limited quantities and offered to customers in Japan and in Southern California. In 2008, the hatchback was replaced by the FCX Clarity, a midsize sedan with room for four. The second model improved upon the original’s 190-mile hydrogen range to deliver 240 miles of fuel cell range.

Arriving March 2016: Honda Clarity Fuel Cell

2015 Tokyo Motor Show

With various concepts, prototypes and limited production fuel cell models behind it, Honda has once again presented another fuel cell model, dubbed the Clarity Fuel Cell. Introduced at the 2015 Tokyo Motor Show this week, the Honda Clarity Fuel Cell offers room for five and a driving range of 435 miles. The all-new hydrogen-powered sedan will go on sale in Japan next March; an initial annual output of just 200 units is expected.

Significant improvements over the previous generation model have yielded a vehicle with 60 percent longer range. The new fuel stack is 33 percent smaller than its predecessor with 100 kW output attained and with much greater energy density. Honda says the new fuel pack is as compact as a V6 engine, enabling it to consolidate it under the hood for the first time. Energy is stored in a lithium-ion battery; refueling takes about three minutes. Water vapor is this vehicle’s only emission.

Previously, the fuel pack was located below the seats, thus limiting the interior room to four people. With its dimensions similar to the outgoing model and aligning closely with the midsize Honda Accord sedan, the extra seat placement will certainly come in handy.

Honda Clarity Fuel Cell Price

Honda says that the Clarify Fuel Cell will cost 7.66 million yen which converts to $63,644 as of publication. That’s about $5,000 more than the competing Toyota Mirai, a fuel cell vehicle just now going on sale. The Clarity is slightly larger than the Mirai and has an 8 percent longer driving range than the Toyota.

US Honda consumers won’t be able to get the Clarify Fuel Cell, at least not initially. Honda intends to deliver its initial batch of vehicles to Japanese government entities and businesses. The automaker says it will “…collect information about the in-market use situation, including the external power feeding device, and gather diverse opinions from customers and other relevant organizations, then later begin sales to individual customers.” Sales will later spread to the United States and Europe, although a timeline has not be released.

US consumers desiring a fuel cell vehicle are currently limited to the Hyundai Tucson FCEV, the Toyota Mirai, Mercedes-Benz B-Class F-CELL, and the upcoming BMW i8 Coupe and the 5 Series Gran Turismo. Even so, those models are restricted to Southern California where the barebones of a hydrogen infrastructure should flesh out to a more robust framework. Toyota plans to eventually roll out its Mirai in the northeast US.

Currently Available Tax Credits and Rebates

US customers who manage to land a fuel cell vehicle are eligible for a $7,500 federal tax credit. Another $6,500 state rebate for low and moderate income California families drops that price further. Wealthier California residents are still eligible for a $5,000 rebate on fuel cell vehicles, but for those making over $250,000, tax rebates on battery electric and plug-in hybrid electric vehicles have been eliminated.

Once again, the high cost of buying an alternate fuel vehicle weights in. And with no nationwide infrastructure planned, fuel cell vehicles may long remain a niche segment within the tiny EV sphere.

Photo copyright Honda Motor Co., Ltd.

Natural Gas Vehicles and a National Energy Policy

March 12, 2013 by admin 3 Comments

GM Chairman and CEO Dan Akerson spoke at the IHS CERAWeek 2013 energy conference this month, where he called upon President Obama to establish a new national energy policy driven in large part by consumer demand for more fuel efficient vehicles.

Akerson reiterated the auto industry’s key role in that effort, telling his Houston audience that his own company is improving fleet-wide fuel economy. GM estimates that consumers will save 12 billion gallons of fuel over the life of the vehicles it will build from 2011 to 2017, the equivalent of 675 million barrels of oil or roughly what the U.S. imported from not-so-friendly Persian Gulf states in 2011.

However, it wasnt just the fuel savings GM expects to achieve that will make a difference. Rather, it was Akersons call on both consumers and the White House to make decisions that would move America closer to energy independence over the next 30 years. That energy independence represents energy security or what has eluded lawmakers for more than 40 years.

Clean Burning Fuel

Akerson touched on a number of points including GMs own efforts to pursue vehicle electrification, while also serving up select models powered by clean diesel engines and even natural gas. Beginning with the 2014 model year, GM brings the Chevrolet Cruze Clean Turbo Diesel to the market, the first home-built GM diesel in a car since the 1980s. It is by far the cleanest and most efficient diesel GM has ever sold in the United States, one of several new engines offered by GM, Ford, Mazda and Chrysler beginning this year.

Natural gas is a clean burning fuel, something America has in abundance and with enough proven reserves on hand to provide energy for 92 years according to the US Energy Information Administration. Thats a lot of fuel, but there are big problems that yet must be addressed: a lack of compressed natural gas vehicles for sale and not enough fueling stations that sell CNG.

CNG Vehicles

Indeed, if you decided tomorrow that you wanted to trade in your family car for a CNG model, you have just one choice available to you. And that vehicle is not sold by GM.

Honda Accord Hybrid The Honda Civic Natural Gas, a five-passenger front-wheel-drive compact car that retails from $26,305, is your lone choice. Right now, if you were to purchase a 2012 Honda Civic NG, you would also get a $3,000 fuel card from Clean Energy, an energy company that operates fueling stations in select areas across the United States. No fuel card is currently offered with 2013 models.

If you are a fleet buyer, then CNG versions of GMs large vans the Chevrolet Express and GMC Sierra can be had with natural gas tanks included. And there is also the MV-1 by VPG Autos, designed exclusively for the mobility community. Beyond these models if you want CNG power, you might explore various conversion kits that are available. Convert a car and you can expect to pay between $10,000 to $13,000 to complete your modification or upwards of $40,000 to modify your truck.

CNG Fueling Stations

And then there is the matter of fueling your CNG vehicle. Right now, there are hundreds of stations across the United States that dispense the fuel, but many are operated by utility companies and government agencies, with public access denied. Indeed, in the Raleigh, NC area there are three fueling stations two are run by the city of Raleigh and the third is operated by PSNC Energy.

In California, your chances of finding a public station are improved with 164 stations listed on the AltFuelStations.com website. Still, you have to do some digging to separate the pubic stations from the private ones.

If you live in Burbank, for instance, the local station is run by the city as is the one in nearby Glendale. It may take a trip to the Union 76 station on S. La Cienega Blvd. to find a public station, a 10-mile trip each way in heavy L.A.-area traffic. Take a trip across the country and you had better download an app to find available CNG stations.

Cleanest Combustion Vehicle

CNG What may appeal most to CNG vehicle aspirants is that a vehicle such as the Honda Civic Natural Gas is easily the cleanest combustion vehicle sold, one that reduces smog formation and greenhouse gas emissions according to the California Air Resources Board. CNG owners also enjoy HOV lane access in some areas as well, including in California.

There is one huge benefit that also appeals to potential buyers: fuel prices come in at approximately one-third to even one-half less than regular-grade gasoline, while offering a miles per gallon equivalency of fuel efficiency. You can opt to have compressed natural gas tanks stored at your home, but your driving range may be severely restricted wherever public access pumps are in short supply.

National Policy

Akerson called on President Obama to promptly appoint a blue ribbon commission to develop a national energy policy framework for energy security, with automatic reviews to track progress every five years. He called for the commission to, Develop a plan to improve our standard of living by extending the duration of the natural gas and tight oil dividend for as long as possible. In the meantime, Akerson has pledged to cut GM vehicle weight averages by 15 percent by 2016, making greater use of such advanced materials as magnesium, NanoSteel, aluminum and carbon fibers to achieve that goal. Those moves alone will help GM reach its corporate average fuel economy goals.

GMs chairman offered no new details about pending CNG models for individual purchase. The technology is available, but without a comprehensive CNG network in place, consumer demand will be held down until more public pumps are available. Just like the slow pace of vehicle electrification adoption, the path to widespread CNG use may be a long one. And unlike electric vehicles, compressed natural gas vehicles are much more affordable and can pay for themselves quicker than EVs.

Tax Credit

There is one final matter that may slow CNG adoption a lack of a current federal tax credit. An earlier $4,000 tax credit expired on Dec. 31, 2010, with its disappearance perhaps giving consumers even one less incentive for buying the cleanest combustible vehicle sold.

Income Tax Breaks and Your Hybrid Car

March 5, 2013 by admin 6 Comments

It happens. You purchase a new car and wonder if there is a tax break or incentive offered. Here on Auto Trends, we are frequently asked if certain vehicles qualify for a tax rebate or a tax credit, including hybrid electric vehicles.

Nissan LEAF buyers can seek a $7,500 tax credit.

Tax Incentives

Federal tax incentives are offered and do include a select group of hybrids, namely of the plug-in hybrid electric vehicle kind. A federal tax credit of up to $3,400 was previously available for standard hybrid models such as the Toyota Prius, Honda Insight and the Ford Fusion Hybrid, but those tax breaks were phased out and eliminated after December 31, 2010.

Today’s tax breaks for fuel efficient vehicles cover plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs). A full credit of $7,500 is offered, but that amount can come in lower based on a vehicle’s battery charging capacity.

For BEVs, that means a $7,500 vehicle credit. For PHEVs, the amount varies although the first PHEV, the Chevrolet Volt, can garner a $7,500 tax credit for buyers.

Propulsion Energy

To understand how the IRS determines the credit, a read up on the Plug-In Electric Drive Vehicle Credit (IRC 30D) is necessary. Specifically, the current law covers those vehicles acquired after Dec. 31, 2009. The IRS states that, “the credit is equal to $2,500 plus, for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours. The total amount of the credit allowed for a vehicle is limited to $7,500.”

Clear as mud, right?

Fortunately, the EPA publishes tax credit information on its website revealing that there are (as of publication) few cars that currently qualify. And, of those vehicles listed, the tax credit ranges from the base $2,500 to the maximum $7,500.

IRS Form 8834

Buyers of the Chevrolet Volt and Fisker Karma score a $7,500 tax credit while the incentive for Toyota Prius PHEV buyers is $2,500. The only other two models qualifying for a tax break are the Ford C-MAX Energi and the Ford Fusion Energi. Buyers of those vehicles can receive a tax break of up to $3,751.

Tax Breaks

You should also know that the incentive for qualifying vehicles is a tax credit. A tax credit reduces your tax balance due while a tax rebate gives you money back regardless of whether you owe money or not.

So, if you owe the IRS $8,000 this year and bought a Chevrolet Volt, you will send the IRS $500 ($8,000 minus the $7,500 credit = $500) at tax time. If you owe the IRS less than the tax credit, the balance of the credit rolls over to the next tax year. You will need to fill out IRS Form 8834 — Qualified Plug-In Electric and Electric Vehicle Credit — and attach it to your tax return to receive the credit.

State Tax Credits

Besides federal help, taxpayers in some states may qualify for additional incentives. In California, tax breaksfor fuel-efficient vehicles include both categories mentioned here plus fuel-cell electric vehicles.

Incentives and other tax breaks for your area are listed on the Plug In America website.

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.

ZEV Diesels — 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