IRS Certifies More Honda Hybrids for Clean Fuel Vehicle Deduction

New Honda Insight and Civic Hybrid qualify for $1,500-2,000 tax deduction depending on year of purchase

Published: 04-Feb-2004

The Internal Revenue Service has certified the Honda Insight, Model Years 2003 and 2004, and the Honda Civic Hybrid, Model Year 2004, as being eligible for the clean-fuel vehicle deduction.

The certification means taxpayers who purchase any of these new hybrid vehicles may claim a tax deduction of up to $2,000 for tax year 2003 or up to $1,500 for tax year 2004.

Federal tax law allows individuals to claim a deduction for the incremental cost of buying a motor vehicle that is propelled by a clean-burning fuel. By combining an electric motor with a gasoline-powered engine, these hybrid vehicles obtain greater fuel efficiency and produce fewer emissions than similar vehicles powered solely by conventional gasoline-powered engines.



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