Alternative Fuels and Tax Credits
Mobile and Area Sources Program- 404-363-7028
Alt fuel vehicle

 

Low Emission "Alternative Fuel" Vehicle (LEV/ZEV) and Medium / Heavy Duty Vehicle (MDV/HDV) Tax Credits in Georgia

  • Low/Zero Emission Vehicles - The current "GA Low Emission Vehicle (LEV) and Zero Emission Vehicle (ZEV) Certification Program (O.C.G.A. 48-7-40.16)" will be discontinued effective July 1, 2015. Vehicles purchased or leased after June 30, 2015 do not qualify for the tax credit. If you purchased or leased your LEV or ZEV vehicle on or before June 30,2015. please see instructions below to apply for your tax credit. The Vehicle Conversion to Alternative Fuel and the Electric Vehicle Charger tax credits are still available. See qualifications below.

  • Alternative Fuel Medium-Duty/Heavy-Duty Vehicles - Effective July 1, 2015, the State of Georgia is offering the following tax credits:
    • A taxpayer is allowed credit expended on or after July 1, 2015, and before June 30, 2017 for the purchase of medium-duty vehicle (MDV) not to exceed $12,000.00 per vehicle.
    • A taxpayer is allowed credit expended on or after July 1, 2015, and before June 30, 2017 for the purchase of heavy-duty vehicle (HDV) not to exceed $20,000.00 per vehicle Please see instructions and qualifications below to apply for your tax credit.

Qualifications for the LEV/ZEV Emission Vehicle, Vehicle Conversion to Alternative Fuels or Electric Vehicle Charger Tax Credits

If your vehicle was purchased or leased BEFORE July 1, 2015, is registered in Georgia, meets the low or zero emission standard and is powered solely by an alternative fuel *, you may be eligible for one of the following tax credits:

  • Low-Emission Vehicle (LEV) - 10% of the vehicle cost or $2,500 (whichever is less)

  • Zero Emission Vehicle (ZEV) - 20% of the vehicle cost or $5,000 (whichever is less)
    NOTE: To receive this credit, the vehicle cannot receive its electricity from an on-board combustion device. Please note that hybrid electric, diesel and gasoline vehicles do not qualify, even if the vehicle has a label noting that it is a LEV. Vehicles must solely operate on an alternative fuel to qualify.

  • Vehicle Conversion to Alternative Fuel - 10% of the conversion cost or $2,500 (whichever is less).

  • Electric vehicle chargers - 10% of the cost of the charger and its installation or $2,500 (whichever is less).
    Conditions:
    • A tax credit for an Electric Vehicle Charger is available only to business enterprises that are not retail and are engaged in manufacturing, warehousing and distribution, processing, telecommunications, tourism or research and development industries. Individual homes and retail businesses do not qualify.
    • A qualified charger is one that is rated greater than 130 volts and is designed to charge on-road vehicles.
    • The charger must be installed in Georgia, accessible to the public and remain in Georgia for 5 consecutive years.

Alternative fuels include (but are not limited to):

  • Natural Gas (compressed or Liquefied)
  • Battery Electric (Hybrids operating on gasoline or diesel do not qualify)
  • Propane
  • Hydrogen Fuel Cell

*"Solely by alternative fuelsmeans a vehicle that is capable of running ONLY on alternative fuel. A vehicle that is capable of operating on gasoline or diesel does not qualify for the tax credit.

Download list of eligible LEV/ZEV vehicles (excel)

LEV/ZEV Tax Credits may be carried forward for 5 years and cannot exceed the taxpayer's income tax liability. MDV/HDV credits do not carry forward.

If you qualify for the tax credit, please see the "Steps to Take if you Qualify" section below.

Qualifications for the Alternative Fuel Medium-Duty Vehicle (MDV)/ Heavy Duty Vehicle (HDV) Tax Credits

If your MDV or HDV was purchased ON or AFTER July 1, 2015 and meets the qualifications below, you may be eligible for a Alternative Fuel MDV or HDV tax credit.

  • Gross vehicle weight ratio (GVWR) must be 8,500 to 26,000 lbs for MDV and greater than 26,000 lbs for HDV.
  • Vehicle must be a new commercial vehicle manufactured by Original Equipment Manufacturer (OEM) and 3rd party equipment manufacturer.
  • MDV must be **solely fueled by an alternative fuel (may include hybrid electric drives using alternative fuels).
  • HDV must be designed by manufacturer to operate on 90% or more of alternative fuel.
  • Seventy Five (75%) of mileage must be accumulated in Georgia each year for a five year period.
  • The vehicle must stay registered in Georgia for no less than 5 years.
  • The total amount of tax credit for a taxpayer or affiliated entity shall not exceed the lesser of, taxpayers income tax liability or $250,000.00
  • No unused portion of credit is allowed against succeeding or prior year’s tax liability.

*"Solely fueled by an alternative fuel means a vehicle that is capable of running ONLY on alternative fuel. A vehicle that is capable of operating on gasoline or diesel does not qualify for the tax credit.

If you qualify for the tax credit, please see the "Steps to Take if you Qualify" section below.

Steps to take if you qualify for a LEV/ZEV, MDV/HDV, Vehicle Conversion or Electric Vehicle Charger Tax Credit:

  1. Download and read the fact sheet below
    LEV/ZEV/MDV/HDV, Vehicle Conversion and Electric Vehicle Charger Tax Credit Fact Sheet

  2. Download a blank LEV/ZEV, MDV/HDV, Vehicle Conversion or Electric Vehicle Charger Certification Form

    Download a blank LEV/ZEV Certification Form
    Download a blank MDV/HDV Certification Form
    Download an Electric Vehicle Charger Certification Form
    Download a Conversion Vehicle Certificate Form

  3. Complete the Certification Form and send the original (in color) along with copies of the following documents (as they apply to the tax credit for which you are applying) to Georgia EPD at the address listed below :

    -- (Required for LEV/ZEV Vehicles, MDV/HDV Vehicles and Electric Chargers Tax Credit.) Copy of the Bill of Sale or Lease Agreement in the name of the taxpayer claiming the credit.

    -- (Required for LEV/ZEV Vehicle and MDV/HDV Vehicles Tax Credit) Permanent Tag Registration and Bill of Sale/Paid Invoice

    -- (Required for Converted Vehicle Tax Credit) Purchase invoices for the conversion kits and a copy of the certificate of conformity from the manufacturer stating that the conversion kit allows the vehicle to meet minimum LEV standards. (This does not apply to converted electric vehicles or if the vehicle is on EPA’s approved list of conversions)
  4. Please send the original Certification Form and copies of supporting documents to:
    Georgia Environmental Protection Division
    Air Protection Branch
    Mobile and Area Sources
    4244 International Parkway
    Suite 134
    Atlanta, GA 30354

  5. EPD will review the completed certification form and supporting documents. Once all the requirements have been met, EPD will sign the form and send it back to you. This approved certificate is used to verify that you, a taxpayer, are entitled to the credit.

  6. For LEV/ZEV, VEHICLE CONVERSIONS or ELECTRIC VEHICLE CHARGER Tax Credit, attach the approved certification form to your Georgia Income Tax Return or Georgia Amended Tax Return and send it to the Georgia Department of Revenue . Omission of the approved certificate will result in the credit being disallowed. The Department of Revenue will approve and issue the actual tax credit. Schedule 2 of your return should reflect the amount of your anticipated credit.

  7. For MDV/HDV Tax Credit, the taxpayer must apply for pre-approval from the Department of Revenue (DOR) by electronically submitting Form   IT- AVP-AP and their DNR Certification form through DOR’s Georgia Tax Center (GTC). DOR will notify the taxpayer within 60 days of the receipt of their application whether they are approved or denied credit based on the $2.5 million fiscal year cap and the $250,000 taxpayer and affiliated entity cap. If approved, the taxpayer must attach their approved forms to their applicable Georgia Income Tax Return to claim the credit.

Contact information

For more information or to return your completed LEV/ZEV, Conversion or Electric Vehicle Charger Certification Form, please contact:

Georgia EPD

LEV Certificate Program
Georgia Environmental Protection Division
Air Protection Branch
Mobile and Area Sources
4244 International Parkway
Suite 134
Atlanta, GA 30354
Phone: 404 - 363 - 7028
Fax: 404-362-2534

For more information about how to obtain your tax credit once you have received your approved, completed LEV certificate form, please contact:

Georgia Department of Revenue

TaxCredits.Inquiries@dor.ga.gov

Additional Information

US Department of Energy: The Alternative Fuels and Advanced Vehicles Data Center (AFDC)

Other Links

Clean Cities Atlanta

The Alternative Fuels and Advanced Vehicles Data Center (AFDC)