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Are there Tax Savings for Installing a Supplemental Hydrogen Generators?

The government realizes how important fuel efficiency is to our economy and our future. They have created tax incentives for those who choose to take action to make their cars more fuel- efficient.

Both United States and Canada have tax deductions available for those who install a hydrogen generator.

Tax Deductions in the United States

The IRS gives a tax deduction for any property that you purchase in order to allow your car to run on a clean-burning fuel. The clean-burning fuels accepted by the IRS are:

• Hydrogen
• Liquefied natural gas
• Natural gas
• Liquefied petroleum
• Electricity
• E85 (or higher alcohol content fuels)

You will need Form 8911 for Federal Taxes.

You can deduct some of the cost of your supplemental hydrogen generator on your taxes the year you purchase it. It must be installed properly in your engine the year you bought it in order to claim this deduction.

Since supplemental hydrogen generators allow your car to run on a cleaner burning hydrogen injected fuel, they qualify for this deduction.

You can find more information via this link:
http://www.mimousa.com/hydrogen/tax-deduction.asp

This is an Excerpt from Form 8911:

Qualified alternative fuel vehicle refueling property is any property (other than a building or its structural components) used to store or dispense an alternative fuel (defined below) into the fuel tank of a motor vehicle propelled by the fuel, but only if the storage or dispensing is at the point where the fuel is delivered into that tank. Alternative fuel. The following are alternative fuels.
c Any fuel at least 85 percent of the volume of which consists of oneor more of the following: ethanol, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas, or hydrogen, or
c Any mixture which consists of two or more of the following: biodiesel (as defined in section 40A(d)(1)), diesel fuel (as defined in section 4083(a)(3)), or kerosene, and at least 20% of the volume of which consists of biodiesel determined without regard to any kerosene in such mixture.

In addition, the following requirements must be met to qualify for
the credit.
c You placed the refueling property in service during your tax year.
c The original use of the property began with you.
c The property is not used predominantly outside the United States.

Exception. If you are the seller of new refueling property to a tax-exempt organization, governmental unit, or a foreign person or entity, and the use of that property is described in section 50(b)(3) or (4), you can claim the credit, but only if you clearly disclose in writing to the purchaser the amount of the tentative credit allowable for the refueling property (included on line 7 of Form 8911). Treat all property eligible for this exception as business/investment use property.