Alternative Fuel and Vehicle Tax Incentives

QUESTION: Are there any light-duty diesel vehicles that have been or are about to be introduced that will meet the certification requirements for the IRS advanced lean burn technology vehicle tax incentive?

Click here to view the Clean Ciites Technical Response discussion and policy background. Included in the response are a list of upcoming light-duty diesel vehicles that have been announced by manufacturers, and appear to qualify for the credit. Note these manufacturers must follow the procedures set forth by IRS in order to certify the vehicle qualifies for the credit.

The advanced lean burn diesel vehicle tax credit was enacted by Section 1341 of the Energy Policy Act of 2005, which amended Section 30B of Title 26 of the U.S. Code. The tax credit is for advanced lean burn vehicles is subject to the hybrid electric vehicle phase-out schedule.

IRS Summary of the Credit for Qualified Hybrid Vehicles: www.irs.gov/newsroom/article/0,,id=157557,00.html

Primer on Clean Diesel Vehicle Tax Credit Provisions in the Energy Bill (HR6): www.dieselforum.org/fileadmin/templates/Resources/LDTax.pdf

Summary of the federal tax credit for alternative fuel vehicles and refueling property. This document also contains a link to the text of the 2005 Energy Act.

IRS Form 8910 Alternative Fuel Vehicle Tax Credit

IRS Form 8911 Alternative Refueling Property (tanks and pumps) Tax Credit

IRS Guidance for AFV refueling property tax credits

IRS 720 instructions: Excise Tax and Credits

Tax Credits for Alternative Fuel Vehicles Q&A by NGV America

Tax Credits for AF refueling infrastructure summary by NEVC

Tax Incentives and AF information from AFDC response center

The Federal and Virginia Executive Orders Strongly Encourage the Use of Alternative Fuels in Federal and State Vehicles

Executive Order 13423 – Strengthening Federal Environmental Energy and Transportation Management

Executive Order 48 — Energy Efficiency in State Government (Virginia)

701 Guidance indicates no waiver will be granted to a federal agency if alternative fuels are reasonably available and priced.