OVERVIEW OF THE FINAL REGULATIONS UNDER SECTIONS 30 AND
179A


     These regulations explain the tax credit that is sometimes
available to those who acquire electric vehicles and the
deduction for those who acquire (certain) clean-fuel vehicles or
equipment to refuel them.  Clean-fuel vehicles are powered by
electricity or a low-emission fuel like natural gas.
     The credit is not available for vehicles that previously
used conventional fuels.  In some instances taxpayers are
required to repay some of the tax benefits they have received if
the vehicle involved is taken out of service prematurely.  This
happens, for instance, if an electric vehicle is converted to run
on conventional fuels within three years of when the taxpayer
first used it.  But the taxpayer is not responsible for recapture
if the vehicle is transferred to another owner and, unbeknownst
to the seller, becomes ineligible for tax benefits.
     These regulations became effective on October 14, 1994. 
Owners whose vehicles ceased to qualify for tax benefits prior to
that date may use any reasonable method to compute the amount
that must be repaid.
     An additional explanation and a full text of the regulations
appears in the Federal Register of August 3, 1995.