Opinion-Editorial

Taxpayers who purchased a new hybrid vehicle in 2003 could claim a tax deduction of up to $2,000 on Form 1040. Unfortunately, this tax deduction for qualified clean-fuel vehicles is set to be reduced incrementally for purchases in 2004, 2005, and 2006 and expire completely on December 31, 2006.

Currently, the tax deduction is available to purchasers of a Toyota Prius, Honda Insight, or Honda Civic Hybrid and applied to expected models such as the 2004 Ford Escape and a General Motors pickup due in 2005, which average 50 miles per gallon (mpg) in the city.