I have never been able to find a straight answer to the question regarding whether you can take the clean fuel vehicle deduction twice in one year.

For some reason today I remembered that I still had Turbo Tax for 2004 installed on my computer. I ran a sample tax return and went to the deduction section and then the clean fuel vehicle deduction. I answered appropriately about buying a clean fuel vehicle, checked the bubble for Ford Escape Hybrid and it told me that I qualified for a $2000 deduction.

It then has a choice of two prompts - "finished" or "I bought more clean fuel vehicles". I checked this prompt and it asked "How Many?". I entered "2" and it answered by saying that I qualified for a $4000 deduction.

In my experience, Turbo Tax is very reliable, accurate and thorough. If it says I can take the deduction twice, I believe it.

Can't promise this is true for Tax Year 2005 but it was the case for TY '04 anyway.

Ray