AUTOMOBILE GAS FUEL EFFICIENCY TAX INCENTIVES And DISINCENTIVES
Tax Credits and Deductions
If you purchase a qualifying hybrid or dedicated alternative
fuel vehicle (AFV) since 2006, you may be eligible for a federal income tax credit. AFVs - compressed natural gas (CNG) vehicles are the only AFVs commercially available as of publication of the Guide. The credit amount varies from vehicle to vehicle, and the hybrid credit will be
gradually phased out based on manufacturer sales. Flexible fuel vehicles are not eligible for the alternative fuel credit.
The Energy Tax Act of 1978 requires auto companies to pay a gas guzzler tax on the sale of cars with exceptionally low fuel economy. Such vehicles are identified in the guide by the word "Tax" in the "Notes"
column. In the dealer showroom, the words "Gas Guzzler" and the tax amount are listed on the vehicle's fuel economy label. The tax does not apply to light trucks.
Other Automobile Fuel Efficiency Links
TIPS - Tips for improving car fuel economy and gas mileage
OPTIONS - Car Fueling Options - Premium, Regular, Ethanol, Biodiesel
TAXES - Automobile Gas Fuel Efficiency Tax Incentives and Disincentives - Credits and Deductions