Qualified property

In order to qualify for the deduction:

1. The clean-fuel vehicle or equipment must be acquired for your own use and not for resale.
2. You must be its original user.
3. The motor vehicle must satisfy any federal or state emissions standards that apply to each fuel the vehicle is designed to use, or
4. It must satisfy any federal and state emissions certification, testing, and warranty requirements that apply.

Some vehicles do not qualify for the deduction, based on how they are used. The following do not qualify:

1. Vehicles used outside the United States
2. Vehicles used to furnish lodging or in connection with lodging
3. Vehicles used by tax-exempt organizations.
4. Vehicles used by governmental units or foreign persons or entities.

Deduction for Clean-Fuel Vehicle Refueling Property

If you use a clean-fuel vehicle in your trade or business, you may be able to deduct clean-fuel vehicle refueling property (other than a building where it is located) that is used to do either of the following:

1. Store or dispense a clean-burning fuel into the fuel tank of the clean-fuel vehicle, but only at the point where the fuel is delivered into the tank (not in a separate storage place or dispensing station.
2. Recharge electric motor vehicles, but only at the point where the vehicles are recharged.

Recharging property includes any equipment used to provide electricity to the battery of an electric vehicle. It includes high and low-voltage recharging equipment, and connection equipment such as inductive charging equipment. It does not include other property used to generate electricity, or the battery used in the vehicle.

Before calculating the clean-fuel vehicle deduction, you must reduce the cost of the property by the amount you are claiming as a section 179 deduction. The section 179 deduction is a special tax provision that allows you to deduct a limited amount of the cost of certain depreciable property in the year you place the property in service.