Alternative Fuel Vehicle (AFV) Tax Credit for Residents

Through the Residential Energy Tax Credit program, qualified residents may receive tax credits for the purchase of new AFVs or the conversion of vehicles to operate on an alternative fuel. The credit for a new AFV is 25% of the incremental cost or $750, whichever is less. AFV conversions may also receive 25% of the project cost or $750, whichever is less. Leased vehicles may qualify with permission from the vehicle owner. AFV conversions must be certified by the U.S. Environmental Protection Agency. Qualified alternative fuels include electricity, propane, hydrogen, and other fuels the Oregon Department of Energy approves. Flexible fuel vehicles and low-speed vehicles are not eligible for the vehicle incentives. The AFV credit is available through December 31, 2011. (Reference House Bills 3672 and 3606, 2011, and Oregon Revised Statutes 316.116, 317.115, and 469.160-469.180)