Volume Enhancing Hardware Incentives for Consumer Lowered Expenses Technology Act of 2005 or the VEHICLE Technology Act of 2005 - Amends the Internal Revenue Code to repeal the phaseouts of the tax credit for qualified electric vehicles and of the tax deduction for clean-fuel vehicles.
Allows a tax credit for investment in certain alternative motor vehicles, including fuel cell vehicles, advanced lean burn technology motor vehicles, hybrid motor vehicles, alternative fuel motor vehicles, and mixed-fuel vehicles. Sets forth formulae for determining the amount of such credit based on various factors, including vehicle weight and fuel efficiency ratings.
Modifies the tax deduction for clean-fuel vehicles and certain refueling property to: (1) extend the terminating date for such deduction through 2009, and through 2012 for hydrogen-related property; (2) increase to $150,000 the cost limitation for such deduction; and (3) extend the deduction to nonbusiness property.