Consumers Claim $33M in Erroneous Vehicle Tax Credits

WASHINGTON - February 16, 2011: A USA Today story written by Sandra Block states that about 20% of federal tax credits claimed for alternative and plug-in electric vehicles during the first seven months of 2010 were erroneous, costing U.S. taxpayers more than $33 million. The report is credited to the Treasury Department's inspector general for tax administration said Thursday.

As the story states, "The tax credits are designed to encourage consumers to buy energy-efficient vehicles, such as General Motors' Chevy Volt and the Nissan Leaf, which typically cost more than conventional gas-powered vehicles. The Obama administration recently announced plans to have 1 million advanced-technology vehicles on the road by 2015.

Taxpayers who purchase eligible vehicles can receive a tax credit worth up to $7,500. The inspector general's report found, though, that most of the erroneous credits were claimed for vehicles that weren't eligible for the tax break. Ineligible vehicles owned by taxpayers who claimed the credit included the Hyundai Sonata, the Buick Enclave and a bicycle, the report found."

The complete story can be found at http://i.usatoday.net/money/_pdfs/11-0203-electric-vehicles-credits.pdf