If you purchased a qualified fuel cell vehicle, you may be able to claim the Alternative Motor Vehicle Credit using IRS Form 8910. This federal tax credit is available only for certain new fuel cell vehicles that meet specific IRS requirements.
Important: Under the One Big Beautiful Bill Act (OBBBA), the Alternative Motor Vehicle Credit was not repealed. However, eligibility is now limited to qualified fuel cell vehicles.
Alternative Motor Vehicle Credit: Current Rules
The Alternative Motor Vehicle Credit remains available for qualified fuel cell vehicles. Other alternative vehicle technologies, including plug-in electric vehicles, hybrid vehicles, compressed natural gas (CNG) vehicles, and liquefied petroleum gas (LPG) vehicles, are no longer eligible under Form 8910.
If you're claiming this credit, make sure your vehicle meets all IRS requirements before filing your return.
Vehicle Requirements
To qualify for the Alternative Motor Vehicle Credit, the vehicle must:
- Be powered by qualified fuel cell technology that converts hydrogen and oxygen into electricity.
- Be a new vehicle, meaning its original use begins with you.
- Have four or more wheels.
- Be manufactured primarily for use on public roads.
- Meet all applicable Clean Air Act and federal motor vehicle safety standards.
Taxpayer Requirements
You may qualify for the credit if:
- You own the vehicle. Lessees cannot claim the credit.
- You placed the vehicle in service during the tax year.
- You acquired the vehicle for use or lease to others, not for resale.
- The vehicle is used primarily within the United States.
Required Documentation
In most cases, you can rely on the manufacturer's certification that the vehicle qualifies for the credit.
If the IRS later withdraws the manufacturer's certification, you may still be able to claim the credit if you purchased the vehicle before the withdrawal date and otherwise meet the eligibility requirements.
How Much Is the Credit Worth?
The credit amount depends on factors such as:
- The vehicle's Gross Vehicle Weight Rating (GVWR).
- The vehicle's fuel efficiency compared with established benchmark standards.
Potential credit amounts include:
- Up to $8,000 for qualified vehicles with a GVWR of 8,500 pounds or less.
- Up to $40,000 for qualified vehicles with a GVWR of more than 26,000 pounds.
The exact credit amount is calculated using IRS rules and may vary by vehicle model.
If you would like more information, you can visit the IRS Form 8910 Instructions.