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

You can deduct each vehicle. The tax code has not changed eligibility.