Qualified Advanced Lean-Burn Technology Vehicles
NOTE: The credit for qualified Advanced Lean-Burn Technology vehicles terminates effective 12-31-2010.
Advanced lean-burn technology vehicles are passenger cars or light trucks with an internal an internal combustion engine designed to operate primarily using more air than is necessary for complete combustion of the fuel. These vehicles generally run on diesel fuel and must also incorporate direct fuel injection technology and achieve at least 125 percent of the 2002 model year city fuel economy rating.
For a taxpayer to claim the credit, the original use of the vehicle must begin with the taxpayer and the vehicle must be acquired for use or lease by the taxpayer and not for resale. Available credit amounts may vary and include a base credit amount based on fuel economy compared to the 2002 model year city fuel economy rating and an additional amount based on the vehicle’s lifetime fuel savings.
There is a limitation on the number of qualified hybrid and advanced lean-burn technology vehicles eligible for credit. The phase-out period begins when a manufacturer sells 60,000 qualified hybrid and advanced lean-burn technology vehicles.
Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th hybrid passenger automobile or light truck or advanced lean-burn technology motor vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
More information on quarterly sales of advanced lean burn vehicles is available.
The qualifying vehicles and their credit amounts are: