What Sort Of Vehicles Qualify For Tax Credits

The types of vehicles that qualify for a vehicle tax credit are hybrids, electric powered and alternative fuel vehicles.  These types of cars will qualify for an alternative vehicle tax credit.  The IRS and the car’s manufacturer determine the amount of credit that the owner of one of these vehicles receives.

Qualifying for the Tax Credit

To qualify for the tax credit, the qualifying alternative fuel vehicle must have been purchased new.  The purchase date for the vehicle would have had to take place on or after January 1, 2006.  The manufacturer has a set criteria of certifications that it must attest to in order to determine if the car qualifies for the alternative vehicle tax credit.

Types of Cars that Qualify

To receive the credit, a car owner must have placed the car into service in the year in which the credit is claimed.  For example if the car owner claims the credit on their 2007 taxes, the car would have had to been first used in 2006.  Vehicles such as the Prius, Corolla Hybrid and others are the sort of vehicles that have typically qualified for the tax credit.