Who decides how big of a tax break states give green cars?



  1. 0 Votes

    US Department of Energy calculates a tax break depending upon the fuel economy, the weight of the vehicle, and whether the tax credit has been or is being phased out. So when you file your taxes, it is a federal government tax credit not a state issued one. It all stems from The Energy Policy Act of 2005 which was initiated by Environmental Protection Agency, then passed by congress and signed into law by G.W. Bush. If you would like to learn more about specific car models and according tax breaks, please go to http://www.irs.gov/businesses/corporations/article/0,,id=203122,00.html


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