Tax Benefits of Using a Water Fueled Car
A “water driven car” is basically a misnomer since there is no car yet which runs only on water. Yet, you can run your car on a hybrid which consists of water and a conventional petroleum based fuel.
Your current car can be converted into a water driven car by simply adding a few parts into the car hood. You can easily do it yourself without the help of any expert or mechanic. As you can easily visualize that a water driven car will cut short you gas expenses to a huge extent in addition to providing satisfaction of an “environment conscious” being.
By driving a water powered car, not only are you doing your bit in improving the environmental conditions by reducing green house gas emissions but also helping the national economy by reducing our dependency on oil producing foreign nations. Moreover, you are also helping our government by reducing federal spending on pollution control and other human health concerns.
Due to the mounting pressure on US government to embrace alternative fuels, the IRS in 2005 started giving rewards for “green” upgrades, “green” cars and “green” fuels.
According to the new guidelines, you could get upto $2000 for a car or upto $50,000 dollars for a truck in case you are adopting “green” technology. Given below are the exact guidelines for this:
“Deduction limit. The maximum deduction you can claim for qualified clean-fuel vehicle property with respect to any motor vehicle is one of the following.
1. $50,000 for a truck or van with a gross vehicle weight rating over 26,000 pounds or for a bus with a seating capacity of at least 20 adults (excluding the driver)
2. $5,000 for a truck or van with a gross vehicle weight rating over 10,000 pounds but not more than 26,000 pounds.
3. $2,000 for a vehicle not included in (1) or (2)”
In order to avail these tax claims, you have to provide appropriate installation and maintenance receipts for your water powered cars.
As you can imagine, this is really a great move by the government to spread the popularity of alternative fuels. Not only will you be helping in improving the environmental conditions but all your investments in embracing green technologies will also receive tax benefits. In addition to the above, there are certain requirements which must be met by the taxpayer in order to qualify for the credit. The following criterions are taken verbatim from the IRS website:
1. “The vehicle must be placed in service after 12-31-05 and purchased on or before 12-31-10.
2. The original use of the vehicle must begin with the taxpayer claiming the credit.
a. The credit may only be claimed by the original owner of a new, qualifying, hybrid vehicle and does not apply to a used hybrid vehicle.
3. The vehicle must be acquired for use or lease by the taxpayer claiming the credit.
a. The credit is only available to the original purchaser of a qualifying hybrid vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.
b. For qualifying vehicles used by a tax-exempt entity, the person who sold the qualifying vehicle to the person or entity using the vehicle is eligible to claim the credit, but only if the seller clearly discloses in a document to the tax-exempt entity the amount of credit.
4. The vehicle must be used predominantly within the United States.”