What are the tax incentives to owning an alternative fuel vehicle?
o The Energy Policy Act (EPAct) of 2005 provides an income tax credit for both businesses and individuals who purchase alternative energy vehicles. The federal tax credit varies based on the gross vehicle weight rating (GVWR) of the vehicle and the EPA or CARB certification level. Only EPA or CARB certified OEM vehicles or EPA or CARB certified SVM retrofit systems can obtain this tax credit. To qualify for an alternative energy vehicle tax credit, a person or business must be a taxpayer. All BAF natural gas retrofits are certified super ultra low emissions vehicles (SULEV) and qualify for the maximum credit available of 80% of the incremental cost. See below table for credit information. There also may be state tax credit available for converting a vehicle to run on natural gas. These credits vary based upon the state and funding availability. The following link provides information on state tax credit for alternative fuel vehicles: http://afdc.energy.gov/afdc/progs/all_state_summary.
