Tax Credit for Energy Efficient Equipments

Last updated on March 10, 2014

Until 2020, there is a one-time tax credit if you buy a new original equipment manufacturer AFV (Alternative Fuel Vehicle). The tax credit is of 50% of the incremental cost of the purchase. The tax credit excludes electric vehicles or converting a vehicle to work on an alternative fuel.

There is another tax credit for 10% of the total vehicle cost if the incremental cost of a new AFV cannot be established or when as AFV is resold. This tax credit is up to $1,500. It can only be used if this tax credit has not been taken before.

Those investing in properties involved in advanced-energy products such as facilities that store energy for electric or hybrid vehicles can expect to continue to get the 30% tax credit on those investments through 2015. This extension was proposed by President Obama and is expected to cost an additional $2.5 billion in credits. If it is accepted, taxpayers will be able to use this tax credit when filing tax returns in 2015.

If you haven’t yet filed your tax return this tax season, you may use this tax credit to lower your tax bill.