The IRS actually did something good.
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. In 2006, the deduction is scheduled to drop to $500.
These vehicles qualify for the clean-fuel vehicle deduction:
· Lexus RX 400h — Model Year 2006
· Ford Escape Hybrid — Model Year 2005
· Toyota Prius — Model Years 2001 through 2005
· Toyota Highlander Hybrid — Model Year 2006
· Honda Insight — Model Years 2000 through 2005
· Honda Civic Hybrid — Model Years 2003 and 2005
· Honda Accord Hybrid — Model Year 2005