On this page you'll find a listing of vehicles that qualify for a federal tax credit. The tax credits that were previously available for hybrids, clean diesels and natural gas vehicles all expired on December 31, 2010. The remaining credits are available for plug-in hybrids and electric vehicles (EVs). These federal incentives are offered to encourage people to buy more fuel-efficient or alternative-fuel cars. Typically, these cars are more expensive and the tax credit is designed to offset that extra cost.
Credits begin to phase out for a manufacturer once it sells 200,000 vehicles. When this happens, the credit is reduced by 50 percent. The credit will then drop another 25 percent in the fourth calendar quarter after the 200,000 number has been reached and will be completely phased out roughly six months later.