HHO Tax Deduction ?

[canastoff]

I have heard that you can file with the IRS for a tax deduction when you build and install an HHO system in
your automobile. However I am not having any luck in locating any information as to what IRS Form that I will need to fill out. I have even checked the IRS website but can't seem to find it, I may be overlooking it. Does anyone know what form # is needed to take this deduction?

Thanks, for the help !
Sincerely,

Chris Anastoff
Louisville, Ky.

[EltonBrandd]

I stole this quote from another forum.
" Does the HHO generator qualify for the hybrid tax credit? (I did not ask them this but I have asked the IRS. I am adding this because some HHO makers are claiming that HHO generators do. Here is the IRS’s answer.)

No it does not. The tax credit is for the purchase of an IRS certified new hybrid car or an IRS certified aftermarket natural gas conversion. There aren’t very many of these and they are mostly for big trucks. In order for ANY HHO device manufacturer to qualify, the manufacturer would have to receive an IRS certification. As of 7-31-08 there are NONE! ABSOLUTELY ZERO! Do not believe anyone claiming otherwise!"
here is the link-
http://hydroreactors.com/smf/index.php?topic=31.0
This sounds about what I would expect to hear from someone who has tried.

[magcshroom]

Actually, i just spoke to a tax agent over the phone from the irs. She said i would need to fill out form 8911 www.irs.gov/pub/irs-pdf/f8911.pdf

I haven't consulted a tax specialist but so far everything seems to abide by the rules. It states if your not a partnership, s corporation, or cooperatives can fill in line 1t of form 3800 which would be $1000 or the smaller cost of 30% of the total cost to install, build, and maintain the hydrogen unit. With hydrogen systems being sold for even up to 500-800 dollars you can earn a substantial tax credit. Keep in mind this is the 2007 form also. I haven't read into it but i think any partnerships would be eligible for a lot more, up to 30,000, for installing all of the hydrogen systems on client's vehicles. Don't quote me on this as i'm not sure and havent talked to a tax agent. Consult a tax expert on all this material, i'm just giving my perception of the deal and trying to put 2 and 2 together. If anyone else is more knowledgeable in the area, plz post your response for myself and others to read. Thanks.

[Genchaos]

I see a fly in the ointment with this line from page 2 of that form:

Alternative fuel. The following are alternative fuels.
c Any fuel at leas t 85 percent of the volume of which consists of one
or more of the following: ethanol, natural gas, compressed natural
gas, liquefied natural gas, liquefied petroleum gas, or hydrogen, or
c Any mixture which consists of two or more of the following:
biodiesel (as defined in section 40A(d)(1)), diesel fuel (as defined in
section 4083(a)(3)), or kerosene, and at least 20% of the volume of
which consists of biodiesel determined without regard to any
kerosene in such mixture.

I think a tax professional would even be leary of using this on a Hydroxy boosted vehicle.

[SteveO]

Nahhh man, not 8911. 8910. Check it out. Page 2.

Qualified fuel cell vehicle. This is a vehicle
propelled by power derived from one or more cells that
convert chemical energy directly into electricity by
combining oxygen with hydrogen fuel, and that meets
certain additional requirements.

http://www.irs.gov/pub/irs-pdf/f8910.pdf

Check that out, might save you some headaches.
Now go out and get that tax break!

[Johnh]

What am I missing SteveO
That says converting Hydrogen and oxygen into electricity
Not
Converting electricity into hydrogen and oxygen.

And "fuel cell" is the exact opposite of "electrolyser"

Also I guess that QUALIFIED word means a type of vehicle that has passed some qualification test.
John

[magcshroom]

Thanks for the link to 8910. It also states a qualified alternative energy vehicle can be a mixture of hydrogen and a petroleum fuel(gas). A lean burn may also apply as we're adding more oxygen, something found in our atmosphere.

[SteveO]

Here I got this stuff off the "Water 4 Gas" people.





NOTES ON "QUALIFIED VEHICLES"
`````````````````````````````
References and important links:
http://www.water4gas.com/members/art..._READ_THIS.txt
http://www.water4gas.com/members/art...Chapter_12.pdf
http://www.irs.gov/pub/irs-pdf/f8910.pdf
http://www.dsireusa.org/Index.cfm?RE=1&EE=1
http://www.eere.energy.gov/states/state_information.cfm
http://go.ucsusa.org/hybridcenter/incentives.cfm


Dear Green Upgrader,

The documents attached here clearly demonstrate that the IRS will give you tax relief for clean-fuel burning vehicles, or hybrids that use clean fuel in part. On their website you will find a list of "qualified vehicles", all made by big
automakers such Toyota, Honda and other famous hybrids. It may seem that if your model is NOT on the list, you're out of luck.

But that's NOT what the actual IRS Code (IRS Law) says! It states in very clear words, as you can see from Chapter 12 of the Code (attached), what is defined BY THE IRS CODE to be "Qualified property":

================================================== =============
Your property must meet the following requirements to qualify
for the deduction.
1. It must be acquired for your own use and not for resale.
2. Its original use must begin with you.
3. Either—
a. The motor vehicle of which it is a part must satisfy
any federal or state emissions standards that apply to
each fuel by which the vehicle is designed to be
propelled, or
b. It must satisfy any federal and state emissions
certification, testing, and warranty requirements that
apply.
================================================== =============

Since THE HYDROGEN-OXYGEN PART of the hybrid emits only water and oxygen as its "emissions", it qualifies for THAT part. As for the regular, original engine, I assume you have maintained it properly and have passed the regular smog tests of your state.

As for the water-based emissions, you don't have to invent the wheel, refer to well-documented scientific research as published on the Internet, US Patent Office and other scientific institutions. As far as I can predict the IRS may try to disqualify your submission and pooh-pooh the validity of its scientific background. The IRS is not the scientific arm of the government. It's the Patent Office and EPA as far as we're concerned. The Patent Office is in general agreement with water enhancers and other gas savers and emission reduction technologies. The EPA is against them and has not approved ANY add-on technology for saving gas and saving the environment. Popular Science has sweepingly pooh-poohed any and all such technologies just as well. These last two are obviously avid enemies of home-made improvements.

Yet they are not the law.

Insist that the IRS approves your submission. If you're not willing to fight, or are not sure of the validity of this technology, either assist yourself and arm yourself with before/after smog tests, or don't fight at all. You are using this IRS information, as the rest of the information we provide, totally at your own risk. But remember this: the more such submissions the IRS receives, the less they are likely to want to waste money and time fighting it. At a level of only 2% of the population, it will be accepted as "normal" and everybody will start doing it. This has been proven to be the only qualification for a new trend to "catch the wave" and boom real fast. It has happened with the penetration of cellphones, DVDs and many other technologies and trends. Two percent of the population is all it takes.