What vehicles qualify for the Alternative Motor Vehicle Credit?
The alternative motor vehicle credit expired for vehicles purchased after 2014. If you purchased a vehicle before 2015, but placed it in service during 2015, you may still be able to claim the credit for 2015. Do not report vehicles purchased after 2014 on form 8910 unless the credit is extended by the IRS.
To qualify for the Alternative Motor Vehicle Credit, the vehicle must be a Qualified Fuel Cell Vehicle. This is a vehicle propelled by power derived from one or more cells that convert chemical energy directly into electricity by combining oxygen with hydrogen fuel, and that meets certain additional requirements.
The following requirements must also be met:
- You are the owner of the vehicle. If the vehicle is leased, only the lessor-not the lessee- is entitled to the credit.
- You placed the vehicle in service during the tax year
- The original use of the vehicle began with you
- You acquired the vehicle for use or to lease to others and not for resale. AND
- You use the vehicle primarily in the Untied States
Generally, you can rely on the manufacturer’s (or, in the case of a foreign manufacturer, its domestic distributor’s) certification that a specific make, model, and model year vehicle qualifies for the credit and the maximum amount of the credit for which it qualifies.
If, however, the IRS publishes an announcement that the certification for any specific make, model, and model year vehicle has been withdrawn, you cannot rely on the certification for such a vehicle purchased after the date of publication of the withdrawal announcement.
If you purchased a vehicle and its certification was withdrawn on or after the date of purchase, you can rely on such certification even if you had not placed the vehicle in service or claimed the credit by the date the withdrawal announcement was published by the IRS. The IRS will not attempt to collect any understatement of tax liability attributable to reliance on the certification as long as you purchased the vehicle on or before the date the IRS published the withdrawal announcement.
For more information, please review the instructions for Form 8910.