Q What kinds of credits are available for fuel-efficient vehicles?
A One credit is for electric vehicles, and the other for alternative motor vehicles, such as hybrids or natural gas-, hydrogen- or ethanol-powered vehicles, said Phyllis Burlage, a member of the Maryland Society of Accountants.
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“In all cases, both businesses and individuals qualify, but you must be the original owner,” Burlage said. “No used or previously owned vehicles ? and you must use the vehicle.”
Fully electric cars qualify for a credit equal to 2.5 percent of the cost of the car, to a maximum of $1,000.
The alternative fuel vehicle rules are more complicated, and the Internal Revenue Service allows a different credit depending on just how efficient the vehicle is, she said.
The only way to know the actual credit that would be allowed is to check the IRS list, available online.
“The full credit is only allowed for the first 60,000 vehicles sold by each manufacturer,” Burlage said.
