• Dedicated vehicles are designed to be fueled only with an alternative fuel.

• Bi-fuel vehicles have two tanks, one for gasoline and one for either natural gas or propane, depending on the vehicle. The vehicles can switch between the two fuels. Dual Fuel vehicles use a combination of fuels simultaneously.

• Flex fuel vehicles can be fueled with gasoline or, depending on the vehicle, with either methanol (M85) or ethanol (E85). The vehicles have one tank and can accept any mixture of gasoline and the alternative fuel.

• Gas-electric hybrids (hybrid electric vehicles or HEVs) combine the internal combustion engine of a conventional vehicle with the battery and electric motor of an electric vehicle, resulting in twice the fuel economy of conventional vehicles. This combination offers the extended range and rapid refueling that consumers expect from a conventional vehicle, with a significant portion of the energy and environmental benefits of an electric vehicle. The practical benefits of HEVs include improved fuel economy and lower emissions compared to conventional vehicles. The inherent flexibility of HEVs allow their use in a wide range of applications, from personal transportation to commercial hauling.

Alternative Fuels Glossary of Terms

Incentives for Purchasing Alternative Fuel Vehicles

• Federal Plug-In Electric Vehicle Credit - Information from the Internal Revenue Service
• IRS clarification of taxpayer deduction for hybrid vehicles
• Federal Tax Deduction for Clean-Fuel Vehicle Deduction Available for Certain Models - Information from the Internal Revenue Service