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 |
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|  Some diesels
purchased or placed into service after December 31, 2005
may be eligible for a federal income tax credit of up to
$3,400. (No eligible vehicles were manufactured for sale until 2008.)
Credit amounts begin to phase out for a given manufacturer
once it has sold over 60,000 eligible hybrid and diesel vehicles.
Vehicle
Make & Model |
Full
Credit |
Phase
Out |
No Credit |
50% |
25% |
|
Audi |
Jan.
1, 2006 |
TBD |
TBD |
TBD |
 2010 Audi A3 2.0L TDI |
$1,300 |
-- |
-- |
-- |
 2009-10 Audi Q7 3.0L TDI
|
$1,150 |
-- |
-- |
-- |
|
BMW |
Jan.
1, 2006 |
TBD |
TBD |
TBD |
 2009-10 BMW 335d Sedan
|
$900 |
-- |
-- |
-- |
 2009-10 BMW X5 xDrive35d Sports Activity Vehicle |
$1,800 |
-- |
-- |
-- |
|
Mercedes-Benz |
Jan.
1, 2006 |
TBD |
TBD |
TBD |
 2010 Mercedes-Benz GL 350 BlueTEC
|
$1,800 |
-- |
-- |
-- |
 2010 Mercedes-Benz ML 350 BlueTEC |
$900 |
-- |
-- |
-- |
2010 Mercedes-Benz
R 350 BlueTEC
|
$1,550 |
-- |
-- |
-- |
 2009 Mercedes-Benz GL 320 BlueTEC
|
$1,800 |
-- |
-- |
-- |
 2009 Mercedes-Benz ML 320 BlueTEC |
$900 |
-- |
-- |
-- |
 2009 Mercedes-Benz
R 320 BlueTEC
|
$1,550 |
-- |
-- |
-- |
|
Volkswagen |
Jan.
1, 2006 |
TBD |
TBD |
TBD |
 2010 Volkswagen Golf 2.0L TDI (automatic)
|
$1,700 |
-- |
-- |
-- |
| 2010 Volkswagen Golf 2.0L TDI (manual)
|
$1,300 |
-- |
-- |
-- |
 2009-10 Volkswagen Jetta 2.0L TDI Sedan
|
$1,300 |
-- |
-- |
-- |
 2009-10 Volkswagen Jetta 2.0L TDI SportWagon
|
$1,300 |
-- |
-- |
-- |
 2009-10 Volkswagen Touareg 3.0L TDI |
$1,150 |
-- |
-- |
-- |
|
| Updated February 8, 2010.
Sources:
Qualified Advanced Lean-Burn Technology Vehicles, IRS, April 9, 2009.
2010 Advanced Lean-Burn Vehicles, IRS, January 25, 2010. |
|
| Additional Requirements |
| Additional
Requirements view... |
| Additional
Requirements hide... |
| The following requirements must be met
to claim the credit:
- The original use of the vehicle commences with the
taxpayer.
- The vehicle is acquired for use or lease by the taxpayer,
and not for resale. (The credit is only available to the
original purchaser of a new, qualifying vehicle. If a
qualifying vehicle is leased to a consumer, the leasing
company may claim the credit.)
- For qualifying vehicles used by a tax-exempt entity, the person who sold the qualifying vehicle to the person or entity using the vehicle is eligible to claim the credit, but only if the seller clearly discloses in a document to the tax-exempt entity the amount of credit.
- The vehicle is used mostly in the United States.
- The vehicle must be placed in service by the taxpayer
after December 31, 2005 and must be purchased on or before
December 31, 2010.
- Click here
for more about the credit phase-out and ending date
Note: Prior to 2009, the Alternative Motor Vehicle Credit could not be used to offset the alternative minimum tax (AMT). However, beginning in 2009, the credit can be applied against the AMT. |
| Phase Out & Termination |
| Phase Out
& Termination view... |
| Phase
Out & Termination hide... |
The credit begins to phase out for a manufacturer's vehicles
once it sells a total of 60,000 eligible hybrid
and diesel vehicles starting from January 1, 2006.
IRS will announce when a manufacturer exceeds this sales
figure.
In addition to the phase out rules, any vehicle purchased
after December 31, 2010 will not be eligible for the credit. |
| Claiming the Credit |
Claiming the Credit
view... |
| Claiming
the Credit hide... |
Fill out Form
8910, Alternative Motor Vehicle Credit.
For diesels acquired for personal use, report the credit
from Form
8910 on the appropriate line of your Form
1040, U.S. Individual Income Tax Return.
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| Additional Information |
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DISCLAIMER
The information on this page should not be viewed as
an official or legally binding document. Other requirements
or exceptions may apply. For more detailed information,
please consult an IRS tax representative and/or official
IRS publications. |
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Document Format (PDF) files. Any PDF file can be downloaded, viewed
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