If you're planning to buy a new car and wouldn't mind cutting both
what you pay at the gas pump and at tax time, consider purchasing a
hybrid gas/electric car.
The IRS recently certified several car models that will qualify for
the clean-fuel tax deduction of up to $2,000. These include the 2005
Honda Insight, Civic Hybrid, Accord Hybrid, Toyota Prius, Ford Escape
Hybrid and the 2006 Lexus RX 400h. Some of these models also qualified
in earlier years. You must buy the vehicle new to qualify for the
deduction.
Hybrids combine a small gas engine with an electric motor. They run
on the electric motor much of the time, with the gas engine kicking in
automatically when needed. Gas mileage is well above that of most other
cars.
Note: If you bought a qualified hybrid in a previous year and didn't
claim the deduction, you might still have time to file an amended return
and get a refund.
For any assistance you need, give us a call.
Return to 2005 Tax Tips
