766 / What is the alternative motor vehicle credit that may be taken against the tax?
Editor’s Note: See Q 767 for information on the expanded tax credit for clean vehicles under the Inflation Reduction Act. The alternative motor vehicle credit is equal to the sum of: (A) the new qualified fuel cell motor vehicle credit; (B) the new advanced lean burn technology motor vehicle credit; (C) the new qualified hybrid vehicle credit; (D) the new qualified alternative motor vehicle credit; and (E) the plug-in conversion credit.1 (This credit replaces the prior deduction for qualified clean-fuel vehicle property, which sunset on December 31, 2005.)2 (A) The new qualified fuel cell motor vehicle credit is based on the weight of the vehicle, and ranges from $8,000 (8,500 pounds maximum) to $40,000 (over 26,000 pounds).3 The amount determined above with respect to a passenger automobile or light truck is increased if the vehicle achieves certain fuel efficiencies, ranging from $1,000 to $4,000.4 The credit for passenger automobiles and light trucks can be as much as $12,000.