An alternative motor vehicle fuel credit is available starting in 2006, and continues in 2008 for several types of alternative fuel vehicles. The credit is equal to the sum of the:
1. qualified fuel cell motor vehicle credit, 2. new advanced lean-burn technology motor vehicle fuel credit; 3. new qualified hybrid motor vehicle credit; and 4. new qualified alternative fuel motor vehicle credit.
For 2008, the list of vehicles that are qualified hybrid vehicles for the Alternative Motor Vehicle Credit has been expanded. The tax credit for hybrid vehicles could be as much as $3,000 for those who purchase the most fuel-efficient vehicles.
Follow this link to see the most current list of hybrid vehicles and how much of a deduction you can take.
