THE QUALIFIED HYBRID MOTOR VEHICLE CREDIT

A qualified hybrid motor vehicle (hybrid vehicle) is a vehicle the original use of which commences with the taxpayer, which is acquired for use or lease by the taxpayer and not for resale, and which is a motor vehicle which

a) draws propulsioin energy from onboard sources of stored energy which are both an internal combustion or heat engine using consumable fuel, and a rechargeable energy storage system;

b) is certified under standards of the Clean Air Act;

c) has a maximum available power based on weight of vehicle; and

d) which meets certain emission standards set by the EPA for 2004-2007.

Note that under Section 179A (which will expire at the end of 2005), the IRS certified seven hybrid gas/electric automobiles as being eligible for the Section 179A clean-burning fuel deduction.

THESE INCLUDE:

Honda Insight

Honda Civic Hybrid

Toyota Prius

Honda Accord Hybrid

Ford Escape SUV

Lexus RX 400h

Toyota Highlander Hybrid

In IR 2005-12, the IRS has certified the 2006 model-year Ford Escape Hybrid and Mercury Mariner Hybrid, the Toyota Highlander and Lexus RX 400h

For more information, go to www.fueleconomy.gov

 

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