Clean fuel deduction

[natiro]

Is the maximum clean fuel deduction for autos per return or per auto? I have a corporate client which is considering the purchase of several hybrid autos. From what I read, it appears they would only get $2,000 maximum deduction if multiple cars are purchased in 2005, but I'm not confident about that. If you can provide a cite for your answer, I'd appreciate it, so I can pass it along to the client.

Many thanks.

[Bird Legs]

Clean Fuel Deduction

Natiero, believe the maximum is $2,000. regardless of how many vehicles you buy.
You might try going to Google and type in Clean Fuel Deduction and see what comes up.

[Bees Knees]

Clean Fuel Deduction

Code section 179A(b)(1)(A) says: “The cost which may be taken into account under subsection (a)(1)(A) with respect to any motor vehicle shall not exceed (i) in the case of a motor vehicle not described in clause (ii) or (iii), $2,000…”

That implies it is a per vehicle deduction that is limited to the $2,000 deduction, not a per taxpayer limit. The new Qualified Alternative Fuel Motor Vehicle Credit which replaces the clean fuel deduction in 2006 also has the language that it is a per vehicle credit, not a per taxpayer credit.

[John of PA]

Clean Fuel

Logic implies that the clean fuel deduction is PER VEHICLE. It would make no sense and defeat the purpose of the dedcution to make it per tax return, becasue what congress really needs here are fleet purchases as a large % of the sales of these and any vehciles are fleets. Also some of these vehicles (ex: Fuel Cell) are only sold to comapny fleets, for now anyway. Thank you Bees Knees for going beyond Logic with your answer of substance.