Our friends at the Internal Revenue Service have certified the model year 2006 Ford Escape Hybrid and the 2006 Mercury Mariner Hybrid vehicles as being elegible for the clean-burning fuel deduction. Taxpayers who purchase a certified hybrid vehicle can claim a tax deduction of up to $2,000. This one-time deduction must be taken in the year the vehicle is originally put into service and the taxpayer must be the original owner. The deduction expires on December 31, 2005 under Section 1348 of the Energy Act of 2005. Next year the deduction will be replaced by a tax credit.
Vehicles currently qualifying for the clean-fuel vehicle deduction include 2006 Ford Escape Hybrid, 2006 Mercury Mariner Hybrid, 2006 Lexus RX 400h, 2005 Ford Escape Hybrid, 2001 - 2005 Toyota Prius, 2006 Toyota Highlander Hybrid, 2000 - 2005 Honda Insight, 2003 - 2005 Honda Civic Hybrid, and 2005 Honda Accord Hybrid.