Can a business claim tax credit for the purchase of hybrid and alternative fuel vehicles?
Businesses are entitled to the same tax credits for the purchase of qualified new hybrid and alternative fuel vehicles as are individual taxpayers. Manufacturers continue to develop new models of vehicles that combine an internal combustion engine with an electrical generation/storage system to reduce fuel consumption and lower emissions. Credit amounts range from $250 to $4,000 per vehicle, on qualified vehicles with gross vehicle weight of 8,500 pounds or less depending upon the type of credit. The credits are only available to the original purchaser, for vehicles purchased or placed in service on or after Jan. 1, 2006. The various credits expire for years ranging from 2010 to 2015, depending upon the particular category of vehicle. Full credit is only available on the first 60,000 of each model sold, after which the credit is phased out as more models are sold. For details on qualifying models and credit amounts, visit www.irs.gov. What are the penalties for tax preparers who knowin
