Irs Certifies 2006 Toyota Hybrid For Clean Fuel Deduction
By Richard A. Chapo, Tue Dec 6th

The Internal Revenue Service has certified the 2006 ToyotaHighlander Hybrid as being eligible for the clean-burning fueldeduction. This certification means that taxpayers who purchaseone of these hybrid vehicles new during calendar year 2005 mayclaim a tax deduction of up to $2000 on Form 1040.

Under Working Families Relief Act of 2004, which was signed intolaw in October of 2004, the clean-burning fuel deduction islimited to up to $2,000 for certified vehicles first put intoservice in 2005 and $500 for vehicles placed in service in 2006.No deduction will be allowed after 2006.

Federal Law allows individuals to claim a deduction for theincremental cost of buying a motor vehicle that is propelled bya clean-burning fuel. By combining an electric motor with agasoline-powered engine, these hybrid vehicles obtain greaterfuel efficiency and produce fewer emissions than similarvehicles powered solely by conventional gasoline-powered engines.