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Federal Tax Credits for Alternative Fuel Vehicles

Federal Tax Credit Up To $4000!

Alternative Fuel Vehicle

Qualifying alternative fuel vehicles (AFVs) purchased or placed into service between January 1, 2005 and December 31, 2010 may be eligible for a federal income tax credit of up to $4,000.

Vehicles purchased after December 31, 2010 are not eligible for this credit. The information below is provided for those filing amended tax returns for previous years.

AFVs Certified for Federal Tax Credits
Vehicle Make & Model Fuel Credit
Honda Civic GX Natural Gas Vehicle2005-11 Honda Civic GX CNG $4,000

Alternative Fuels


To be eligible for this tax credit, the vehicle must only be capable of operating on any of the following alternative fuels:

  • Compressed natural gas (CNG)
  • Liquefied natural gas (LNG)
  • Liquefied petroleum gas (LPG)
  • Hydrogen
  • Any liquid at least 85% methanol by volume

Additional Requirements


The vehicle must also meet these requirements:

  • It's original use commences with the taxpayer.
  • It 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.)
  • It is used mostly in the United States.

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.

Claiming the Credit


Fill out Form 8910, Alternative Motor Vehicle Credit.

Form 8910

For AFVs acquired for personal use, report the credit from Form 8910 on the appropriate line of your Form 1040, U.S. Individual Income Tax Return.

Other Tax Incentives


Some state and local governments also provide incentives for AFVs. Check with your state or local government or view the U.S. Department of Energy's list of State & Federal Incentives & Laws.

AFVs are not eligibe for electric vehicle tax credits.

Additional Information



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.