Alternative Fuel Vehicle Tax Credit

Summary

West Virginia offers a tax credit to those who convert a conventional vehicle to operate as an alternative fuel vehicle, and to those who purchase a new dedicated or dually fueled alternative fuel vehicle from an original equipment manufacturer or an after-market conversion facility. "Alternative fuels" include compressed natural gas, liquefied natural gas, ethanol (at least 85% by volume), and methanol (at least 85% by volume). An "alternative fuel vehicle" is defined as a vehicle that (1) operates solely on one alternative fuel, (2) is capable of operating on one or more alternative fuels, singly or in combination; or (3) is capable of operating on an alternative fuel and is also capable of operating on gasoline or diesel fuel. The total amount of any credit may not exceed the actual cost of converting from a traditionally-fueled motor vehicle to an alternatively-fueled motor vehicle, or in the case of a new purchase, the incremental difference in cost between an alternative-fuel motor vehicle and a comparably equipped motor vehicle that employs traditional fuel technology. The maximum total credit allowed for an alternative fuel vehicle is: (1) $3,750 for a vehicle with a gross vehicle weight of not more than 10,000 pounds; (2) $9,250 for a vehicle with a gross vehicle weight between 10,000 and 26,000 pounds; (3) $50,000 for vehicles weighing more than 26,000 pounds; and (4) $50,000 for buses capable of seating at least 20 adults. Those who convert or purchase a vehicle that operates exclusively on electricity are entitled to an additional credit of 10% of the initial credit. The credit is taken in three equal increments over a three-consecutive tax-year period, so that in any tax year in which a taxpayer is entitled to the credit, only one third of the total credit allowed for a certain alternative fuel vehicle may be taken.