- quote -

new tax law kept this at the 2003 $2000 amount rather than
reducing it to $1500.

Jan Zobel EA

--
Jan Zobel EA, author of 'Minding Her Own Business:
The Self-Employed Woman's Guide To Taxes and Recordkeeping'

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- quote -

The amount depends on the tax year that you purchase your
vehicle, and your marginal tax rate. It's only good for NEW
purchases. NOT leases. NOT used vehicles.

You are looking for the Clean Fueled Vehicle DEDUCTION.
It's listed in IRS Publication 535 "Business Expenses,"
chapter 12.

Currently covered hybrid vehicles are the 2001-2005 Toyota
Prius, the 2000-2004 Honda Insight, and the 2003-2004 Honda
Civic Hybrid. I think that the 2005 Hondas may also be
covered, as well as the 2005 Ford Escape Hybrid now on the
market (just waiting for IRS approval).

some sites for more info:
http://www.toyota.com/vehicles/2005/prius/tax.html
http://www.fordvehicles.com/escapehy...ndex.asp#faq18
http://automobiles.honda.com/info/cl...e=Civic+Hybrid
http://automobiles.honda.com/info/cl...elName=Insight

Thanks to the newly signed "Working Families Tax Relief Act
of 2004," the Clean Fueled Vehicle deduction has been
extended. The amount of the deduction for purchases in 2004
and 2005 are now the old amount of $2000, whereas prior to
the act the amounts were $1500 and $1000 respectively. 2006
is still $500, with the sunset still in 2007.

http://www.irs.gov/newsroom/article/...130146,00.html
http://www.irs.gov/newsroom/article/...104549,00.html

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- quote -

Actually, it's $2000 for TY2004 and TY2005 (dropping to $500
in TY2006). See HR1308, signed into law a couple of weeks
ago.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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- quote -

It's $1500 for 2004 and it's a deduction, not a credit. I
believe only the Toyota Prius and the Honda Hybrid Civic
currently qualify for it for 2004. It goes in the
adjustments to income section with the notation "clean fuel
vehicle".

--
Jan Zobel EA, author of 'Minding Her Own Business:
The Self-Employed Woman's Guide To Taxes and Recordkeeping'

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I understand that there is a $1000.00 tax credit for people
who buy a certain model Toyota. Might be one of thoses
hybrid models. What line is this reported on.

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