Toyota Highlander Hybrid Certified for
the Clean-Fuel Deduction
The Internal Revenue Service has certified the 2006 Toyota Highlander Hybrid as
being eligible for the clean-burning fuel deduction. This certification means
that taxpayers who purchase one of the hybrids new during calendar year 2005 may
claim a tax deduction of up to $2,000 on Form 1040.
Under Working Families Relief Act of 2004, which was signed into law in October
2004, the clean-burning fuel deduction is limited to up to $2,000 for certified
vehicles first put into service in 2005 and $500 for vehicles placed in service
in 2006. No deduction will be allowed after 2006.
Federal law allows individuals to claim a deduction for the incremental cost of
buying a motor vehicle that is propelled by a clean-burning fuel. This one-time
deduction must be taken in the year the vehicle is originally used.
The taxpayer must be the original owner. Individuals do not have to itemize
deductions on their tax return to claim this deduction. This benefit can be
taken as an adjustment to income on the Form 1040.
To check out the list of hybrid vehicles that the IRS has previously certified
for the clean-burning fuel deduction, visit IRS.gov.
Published 07/04/2005
©
2005 Greenmedia Publishing Ltd.