It seems that being a good steward of the environment these days pays dividends. The government has created several tax credits for buying vehicles that run on things like ethanol alternative fuel and electricity.


There is more than one alternative fuel tax credit, and depending on the vehicle and fuel you choose, there are a number of tax credits you may qualify for according to the alternative fuels index. Below, we'll look at how each alternative fuel tax credit looks and how you can qualify.

Clean Diesel Tax Credit

This credit can be earned by people that buy models that qualify for the advanced lean burn technology motor vehicle category.

Fuel Cell Motor Vehicle Credit

This tax credit of $8,000 goes to people that purchase a light duty fuel cell vehicle. The vehicle must meet Bin 5 Tier II emissions levels.

Alternative Fuel Tax Credit

The alternative fuel tax credit is $4,000 and can be claimed by people that own vehicles that are able to operate on the following alternative fuels as stated by the alternative fuels index: