List of Vehicles Eligible for Clean-Burning Fuel Deduction

[arthur gold]

The IRS today certified that the model year 2006 Lexus RX 400H is eligible for the clean-burning fuel deduction. The original purchaser of a qualifying hybrid gas-electric car may deduct $2,000 for the year the vehicle is first used, if that year is before 2006. (For vehicles placed in service in 2006, the amount of the deduction is phased down to $500, and no deduction is allowed after 2006.)

With today’s release (IR-2005-57), vehicles qualifying for the clean-fuel vehicle deduction are the:


Lexus RX 400h â€" Model Year 2006
Ford Escape Hybrid â€" Model Year 2005
Toyota Prius â€" Model Years 2001 through 2005
Honda Insight â€" Model Years 2000 through 2005
Honda Civic Hybrid â€" Model Years 2003 and 2005
Honda Accord Hybrid â€" Model Year 2005
The IRS notes that individuals must use Form 1040, U.S. Individual Income Tax Return, to claim this deduction and, in completing their tax returns, need to insert the words "Clean-Fuel" and the deduction amount on the dotted line to the left of line 35â€"including this amount in that lines total adjustments to income. (To claim the deduction in earlier years, individual taxpayers would have used line 33 on the 2003 Form 1040; line 34 on the 2002 form; line 32 the previous two years.)

Qualifying individuals who did not claim the deduction when they filed their original federal income tax return may claim it on an amended return (Form 1040X).