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Tax Credits Available For Alternatively Fueled Vehicles

9 March 1999

Tax Credits Available For Alternatively Fueled Vehicles, According to Georgia EPD

    ATLANTA, March 8 --  As a way to curb air pollution and
promote cleaner vehicles, Georgia is offering a tax credit of up to $1500.00
for the purchase of a new alternatively fueled Low Emission Vehicle (LEV).  To
qualify, the following requirements must be met:

    *  The vehicle must be purchased or leased on or after January 1, 1998, by
       an individual or a company not covered by the State's Clean Fueled
       Fleet Program;

    *  The vehicle must be registered in one of the following counties:
       Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Cobb, Coweta,
       Dawson, DeKalb, Douglas, Fayette, Forsyth, Fulton, Gordon, Gwinnett,
       Hall, Heard, Henry, Haralson, Jackson, Meriwether, Newton, Paulding,
       Pickens, Polk, Rockdale, Spalding, Troup, and Walton; and

    *  The vehicle must be a dedicated alternative fueled vehicle federally
       certified to the LEV standard (dealerships will provide documentation).
       A few examples of  dedicated alternative fueled vehicles include those
       that are able to operate only on natural gas, propane, electricity,
       methanol, ethanol, or hydrogen.  Cars that use gasoline or diesel fuel
       do not qualify for this tax credit.

    In late 1998, the Georgia Environmental Protection Division (EPD) adopted
a "Low Emission Vehicle Certification" rule as another means of helping curb
air pollution in the larger metro Atlanta area.  The intent of this rule is to
increase the number of LEV certified alternative fueled vehicles purchased by
the public by offering a state income tax credit for such purchases.  LEVs
emit approximately 50% less smog producing agents than most gasoline vehicles
coming off assembly lines today.
    To receive your LEV tax credit, attach a copy of your LEV certificate form
from the dealership along with a copy of your vehicle's registration form to
your Georgia Income Tax Return (Form 500) or Georgia Amended Tax Return (Form
500X).  Schedule 2 of the 500 form should reflect the amount of the credit
claimed, up to $1,500.00 but not to exceed your current year's tax liability.
This amount should also be entered on line 17 of the Georgia Individual Tax
Return or entered as a credit on line 6 of the amended Georgia Return (Form
500X) with an appropriate explanation of adjustment claimed detailed in Part
IV of the form.  Omission of the original LEV certificate form(s) and/or the
vehicle registration form(s) will result in the credit claimed being
disallowed.
    For more information about qualified alternatively fueled LEVs, please
contact EPD at (404) 363-7028.
    For more information about how to obtain you tax credit once you have
received your completed LEV certificate form, please contact the Georgia
Department of Revenue at (404) 656-4188.