U.S. Clean Fuel
You are allowed a limited deduction for the cost
of clean-fuel vehicle property and clean-fuel vehicle refueling property you
place in service during the tax year.
The following are clean-burning fuels:
Liquefied Natural Gas
Liquefied Petroleum Gas
Any other fuel that is at least 85% alcohol
(any kind) or ether
(Your engine must be totally
powered by this Fuel. HHO is not powering your engine; it is aiding
clean combustion of your existing fuel).
Deduction for Clean-Fuel
The deduction for this property may be claimed regardless of whether the
property is used in a trade or business.
Clean-Fuel Vehicle Property is either of the
following kinds of property.
Any property installed on a motor vehicle
(including installation costs) to enable it to be propelled by a
The property is an engine (or modification of
an engine) that can use a clean-burning fuel, or The Property is used to
store or deliver that fuel to the engine or to exhaust gases from the
combustion of that fuel.
If HHO is not propelling the vehicle, then
it is not a fuel; it is a fuel additive, same as ethanol gasoline mix.
Making 100% Ethanol and using it as a fuel would qualify. Making and
using 100% HHO would qualify under Hydrogen.
For vehicles that may be propelled by both a
clean-burning fuel and any other fuel, your deduction is generally the
additional cost of permitting the use of the clean-burning fuel.