(a) Licensed vehicles must have their entire value excluded when the vehicle meets any of the requirements set forth in subclauses ( 1 ) through ( 9 ) of this clause. However, when vehicles do not qualify for any of these exclusions, such vehicles must be valued according to the market value test as described in clauses ( b ), ( c ) and ( d ) of this subparagraph. The tests for exclusions are as follows:

(1) used primarily (over 50 percent of the time) for income-producing purposes;

(2) annually producing income consistent with its fair market value, even if used only on a seasonal basis;

(3) necessary for long-distance travel, other than daily commuting, if it is essential to the employment of a household member or ineligible alien or disqualified person whose resources are being considered available to the household;

(4) used as the household's home and is, therefore, excluded as such;

(5) necessary to transport a physically disabled household member or ineligible alien or disqualified person whose resources are being considered available to the household regardless of the purpose of such transportation;

(6) any vehicle operated on those Indian reservations that do not require vehicles driven by tribal members to be licensed;

(7) any vehicle leased by a household member;

(8) any vehicle title which is held by a non-household member so long as no member of the household is permitted to access the cash value of the vehicle; or

(9) any vehicle upon which a household depends to carry fuel for heating or water for home use when such transported fuel or water is the primary source of fuel or water for the household.

(b) All licensed vehicles not excluded under clause ( a ) of this subparagraph must be evaluated individually for their fair market value. That portion of the value which exceeds $4,600 through September 30, 1996, and $4,650 beginning October 1, 1996 must be attributed in full toward the household's resource level, regardless of any encumbrances on the vehicle.

(c) Licensed vehicles shall also be evaluated for their equity value except for the following types of vehicles:

(1) vehicles excluded under clause ( a ) of this subparagraph;

(2) one general purpose licensed vehicle per household;

(3) additional licensed vehicles which are used by household members (or an ineligible alien or excluded individual whose resources are being considered available to the household) to attend training or education preparatory to employment, to travel to and from employment, or to seek employment in compliance with the job search requirements of the food stamp program.