AJC Urges Feds Extend Tax Deduction on Hybrids
This week, Toyota announced another price increase for its Prius gasoline-and-electric car because of strong demand. The $580 hike amounts to a 2.9 percent rise in the base price and follows a $300 boost in April.
This month, Ford began production of its Escape Hybrid sport utility vehicle, which costs $3,500 more than a conventional model.
The developments mean the federal income tax deduction offered to stimulate interest in cleaner, more efficient vehicles covers less and less of the expense of buying them. The deduction already was being reduced, as mandated by law. Unless Congress acts, the deduction will end in 2006, having shrunk from $2,000 to only $500 in its last year.
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