W2 Federal Tax Forms

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Maybe you’ve heard about some of the other eco minded credits that are available. There are many for improving the efficiency and cleanliness of your home, and as you may or may not know, there are also many federal incentives concerning automobiles. Specifically, hybrid and alternative fuel vehicles. You may not have heard of the alternative fuel tax credit, but it does exist.

If you bought a new alternative fuel vehicle after January of 2006 and placed it into service, then you may be eligible for a tax credit that equals 50% of the incremental cost of the vehicle plus an additional 30% of the incremental cost for vehicles with near-zero emission. This will be filed with IRS Form 8910.

Clean Diesel Tax Credit:

This fuel tax credit offers an income tax credit for people who purchase models that qualify for the advanced lean burn technology motor vehicle category.

Hybrid Motor Vehicle Credit:

This tax credit is for light duty hybrid vehicles and it’s based on their improved fuel economy and their potential of life time fuel saving power. The credit is broken up into two parts. The fuel economy part can start at $400 and run up to $2,400. The conservation credit can start at $250 and get up to $1,000. This tax credit offer expires in December 31, 2010.

Fuel Cell Motor Vehicle:

If you purchase a light duty fuel cell vehicle then this will be a base tax credit of $8,000. This offer will be valid until December 31, 2009, and after that will decrease to $4,000. Qualifying vehicles must meet Bin 5 Tier II emission levels.

Additional base tax credits are available for medium and heavy duty fuel cell vehicles. The amounts will be determined by the IRS and will be based on a sliding scale by vehicle weight. This credit is available until December 31, 2014.

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Other costs

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