http://www.consumeraffairs.com/news0...d_hybrids.html

The Internal Revenue Service has certified the model year 2006 Ford Escape Hybrid and the 2006 Mercury Mariner Hybrid vehicles as being eligible for the clean-burning fuel deduction. The certification means that taxpayers who purchase one of these hybrid vehicles new during calendar year 2005 may claim a tax deduction of up to $2,000 on Form 1040.
Under the current law, the clean-burning fuel deduction is limited to up to $2,000 for certified vehicles first put into service in 2005. Federal law allows individuals to claim a deduction for the incremental cost of buying a motor vehicle that is propelled by a clean-burning fuel.

By combining an electric motor with a gasoline-powered engine, these hybrid vehicles obtain greater fuel efficiency and produce fewer emissions than similar vehicles powered solely by conventional gasoline-powered engines.

This one-time deduction must be taken in the year the vehicle is originally used. The taxpayer must be the original owner. Individuals do not have to itemize deductions on their tax return to claim this deduction. This benefit can be taken as an adjustment to income on the Form 1040.

The amount of the deduction for the Ford Escape Hybrid and the Mercury Mariner Hybrid was set after the manufacturer, Ford Motor Company, documented for the IRS the incremental cost related to the vehicles’ electric motor and related equipment.

These vehicles currently qualify for the clean-fuel vehicle deduction:

• Ford Escape Hybrid — Model Year 2006<<<
• Mercury Mariner Hybrid — Model Year 2006<<<
• Lexus RX 400h — Model Year 2006<<<
• Ford Escape Hybrid — Model Year 2005<<<
• Toyota Prius — Model Years 2001 through 2005<<<
• Toyota Highlander Hybrid — Model Year 2006<<<
• Honda Insight — Model Years 2000 through 2005<<<
• Honda Civic Hybrid — Model Years 2003 and 2005<<<
• Honda Accord Hybrid — Model Year 2005<<<

The deduction for the purchase of a hybrid vehicle expires on December 31, 2005 under Section 1348 of the Energy Act of 2005. The deduction has been replaced by a tax credit that takes effect next year.

 

Cool, I figured we'd be included, but it's nice to have it all done now rather than in Feb or April or somesuch.

 

<The taxpayer must be the original owner. >

It's good to see our government is encouraging people to buy new hybrids, but hopefully, in the future our politicians will see the value in giving all hybrid owners a tax credit.

Does the value of a hybrid to dependence upon foreign oil or cleaning up the environment depend upon who owns it?