Q: If I buy a new E-85 vehicle this year, can I claim it on my income tax form? My friend bought one three years ago. Can they file an amended form to claim it on their income tax? How much is the credit?

A: Currently the allowable tax deduction for E85 vehicles falls under the jurisdiction of the 'Clean Fuel Vehicles Incentives' as defined by the US federal tax code. It is equal to the cost of the vehicle's engine, the equipment used to store or deliver the fuel, and the equipment used to exhaust combusted gases, up to a maximum of $2,000 for vehicles placed in service by the end of 2005. For vehicles that may be propelled by both a clean-burning fuel and any other fuel, such as E85 vehicles, the deduction is limited to the additional cost of permitting the use of the clean-burning fuel, with the same maximum deductions detailed above. Specific requirements for qualifying for the incentives, procedures for claiming the deductions for vehicles bought in previous tax years, and additional helpful links may be found at http://www.fueleconomy.gov/feg/tax_afv.shtml.

The following site:
http://www.e85fuel.com/promoitems/e85taxincentives.php?topic=For%20Suppliers
includes laws, regulations, and tax information specific to each state.