A government watchdog says thousands of U.S. taxpayers incorrectly claimed large tax credits for electric vehicles last year.
A Treasury Department inspector general's report says nearly 13,000 taxpayers, including prisoners and some IRS employees, wrongly claimed about $33 million in credits for plug-in electric and alternative vehicles during the first six months of 2010.
President Barack Obama has pushed for 1 million electric cars on the road by 2015 and the tax breaks are part of the strategy. The government has offered numerous incentives to drum up interest in the vehicles, including a $7,500 tax credit for plug-in electric vehicles and incentives for converting a car into a plug-in.
But the review found problems with thousands of taxpayers claiming the credits for cars that failed to qualify.