government provides dollar-for-dollar
Tax Credits (not deductions) to private consumers
and commercial fleets that convert to some form of hybrid fuel technology¹.
The IRS wording that qualifies our system for
this tax credit states:
Alternative Fuel Vehicle. This
is a new or converted
natural gas, liquefied natural gas, liquefied petroleum
any liquid that is at least 85 percent methanol, or
a mixture of one of these fuels and a petroleum-based
and that meets certain additional requirements. This
wording is found on
the instructions for IRS form 8910, under the section
titled: Alternative Motor Vehicle,Qualified
Alternative Fuel Vehicle.
The opinion expressed below, comes from a Mr. Jacobs, IRS Complex Tax Law Representative, 75-15658
"IRS Form 8911 clearly states that this (Hydrogen Generator) would qualify as
alternative fuel vehicle refueling property because it is injecting hydrogen
into a motor vehicle.
"Since you (may) have both personal and business use of a vehicle, you would
figure the credit on form 8911 as follows:
"Based upon the percentage of business use of the vehicle you would
multiply the cost of the property times that percentage of business use and put that amount on line 2 of the form
(The total cost of the equipment would have been placed on line 1.
"Line 5 will figure the credit based upon 30% of the line 2 amount.
This portion of the credit will go to IRS form 3800, line 1w.
"The remainder of the cost of the property will be placed on form 8911,
line 10 and 30% of that amount will be computed there. This personal
use portion of the credit will go to your tax return form 1040, line 55.
"Please note that this is a non-refundable credit. In both cases the
credit can reduce income tax but not create a refund and is subject to alternative minimum tax limits.
"Also note that when you bring the business portion of the credit to the
Form 3800, that will come over to form 1040 as a non-refundable credit.
Therefore when you get to line 15b of Form 8911 that business portion
of the credit will pop up again."
¹This claim is NOT a guarantee that you will
qualify for this tax credit and is NOT to be construed as tax advice.While it is true that the HPS systems
described in this program converts a vehicle into a Qualified Alternative FuelVehicle (as defined by I.R.S. Form
8910, Alternative Motor Vehicle Tax Credit), only you and your tax advisor candetermine if you personally qualify and are
eligible for this tax credit. Hydrogen Power Systems
will provide you with Proof of Purchase & Installation documentation
required bythe IRS. You and your tax advisor are then
responsible for preparing and filing the necessary forms to the IRS toclaim this tax credit.