Tax Credits Expire for Hydrogen Cars

December 24, 2014 Taxation in USA

WASHINGTON D.C. – Hydrogen fuel-cell cars in the USA are set to become more expensive, as Congress allows tax breaks on such vehicles to expire.

On December 31st the US federal tax break on the sale of hydrogen fuel cars is set to expire, and the US Congress has not finished work for the year without approving an extension to the tax break.

Currently, the purchase of a hydrogen powered car is eligible for a tax credit of USD 4 000, with an additional tax credit of up to USD 4 000 based on the efficiency of the vehicle compared to present fuel efficiency standards.

The tax credit could potentially be approved in 2015 and could be applied retroactively, although any individual purchasing a vehicle between the end of the year and the extension will not have any guarantee that the credit will be approved.

Photo By: Official U.S. Navy Page