IRS announces that model year 2006 Lexus RX 400h is eligible for the clean-burning fuel deduction.
Taxpayers who purchase one of these hybrid vehicles new during calendar year 2005 may claim a tax deduction of up to $2,000 on Form 1040. According to the Working Families Relief Act of 2004, the clean-burning fuel deduction is limited to $2,000 for certified vehicles first put into service in 2005 and $500 for vehicles put in service in 2006. No deduction will be allowed after 2006.
Previously certified vehicles include:
- Ford Escape Hybrid (2005)
- Honda Accord Hybrid (2005)
- Honda Civic Hybrid (2003-2005)
- Honda Insight (2000-2005)
- Toyota Prius (2001-2005)
