766 / What is the alternative motor vehicle credit that may be taken against the tax?
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.
The term “new qualified fuel cell motor vehicle” means a motor vehicle: (1) propelled by power derived from one or more fuel cells that convert chemical energy directly into electricity by combining oxygen with hydrogen fuel that is stored on board the vehicle in any form and may or may not require reformation prior to use; (2) that, in the case of a passenger vehicle or light truck, has received a certificate that the vehicle meets certain emission levels; (3) the original use of which begins with the taxpayer; (4) that is acquired for use or lease by the taxpayer and not for resale; and (5) that is made by a manufacturer.5