IRS Publication: Deductions for
Clean-Fuel Vehicle and Refueling Property
Deduction for Clean-Fuel
Vehicle Property
The deduction for this property may be claimed
regardless of whether the property is used in a trade or business.
Clean-fuel vehicle property.
Clean-fuel vehicle property is either of the following kinds of
property.
- A motor vehicle (defined earlier) produced by an
original equipment manufacturer and designed to be propelled by a
clean-burning fuel. These include designated hybrid gas-electric
automobiles which, at this time, only include the Ford Escape
Hybrid, Honda Accord Hybrid, Honda Insight, Honda Civic Hybrid,
Lexus RX 400h, Mercury Mariner Hybrid, Toyota Highlander Hybrid, and
Toyota Prius. Those designated automobiles do not qualify for the
electric vehicle credit. For other than those designated
automobiles, the only part of a vehicle's basis that qualifies for
the deduction is the part attributable to:
- A clean-fuel engine that can use a
clean-burning fuel,
- The property used to store or deliver the
fuel to the engine, or
- The property used to exhaust gases from the
combustion of the fuel.
- Any property installed on a motor vehicle
(including installation costs) to enable it to be propelled by a
clean-burning fuel if:
- The property is an engine (or modification of
an engine) that can use a clean-burning fuel, or
- The property is used to store or deliver that
fuel to the engine or to exhaust gases from the combustion of
that fuel.
For vehicles that may be propelled by both a
clean-burning fuel and any other fuel, your deduction is generally the
additional cost of permitting the use of the clean-burning fuel.
