"The development and use of hybrid vehicles is a key step toward reducing
gasoline consumption, emissions of air pollutants and greenhouse gas
emissions," said Snow. "I commend the manufacturers who are making these
energy-efficient and environment-friendly vehicles and hope that the
President's energy bill proves to be an important step in their rising
prominence on American roads."
While hybrid vehicles are described to have drive trains powered by both
an internal combustion engine and a rechargeable battery, the issuance
seeks to dispel all doubt and rumor for buyers, sellers, manufacturers and
accountants.
"This IRS guidance establishes a process that manufacturers can use to
certify the amount of credit the purchaser of the vehicle can claim. This
is going to provide much-needed certainty to Americans who are purchasing
these vehicles. It means they will be able to rely on the manufacturer's
certification when they claim the credit on their tax return. This is good
news for those consumers because they are also taxpayers who seek simpler,
fairer tax filing, and it is good news for manufacturers who can now offer
reassurance to customers on the ease of the tax rules," Snow said.
The Energy Policy Act also provides tax credits for other eligible motor
vehicles not covered by today's guidance, including fuel-cell vehicles,
alternative fuel vehicles, and hybrid heavy trucks. The IRS will issue
guidance providing certification procedures for these vehicles in the near
future.