Government Fleet Top News

IRS Certifies Ford and Mercury Hybrid Vehicles for the Clean-Fuel Deduction

November 16, 2005

WASHINGTON, D.C. — The Internal Revenue Service has certified the 2006-MY Ford Escape Hybrid and the 2006 Mercury Mariner Hybrid vehicles as being eligible for the clean-burning fuel deduction. This certification means that 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. Under the current law, the clean-burning fuel deduction is limited to up to $2,000 for certified vehicles first put into service in 2005. 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. By combin-ing an electric motor with a gasoline-powered engine, these hybrid vehicles obtain greater fuel efficiency and produce fewer emissions than similar vehicles powered solely by conventional gasoline-powered engines. 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.The amount of the deduction for the Ford Escape Hybrid and the Mercury Mariner Hybrid was set after the manufacturer, Ford Motor Co., documented for the IRS the incremental cost related to the vehicles’ electric motor and related equipment. The deduction for the purchase of a hybrid vehicle expires on December 31, 2005, under Section 1348 of the Energy Act of 2005. The deduction has been replaced by a tax credit found in Section 1341 Alternative Motor Vehicle Credit, also of the Energy Act of 2005.A complete list of vehicle models that have been certified for the clean-burning fuel deduction can be seen on the IRS Web site at

Comment On This Story

Comment: (Maximum 10000 characters)  
Leave this field empty:
* Please note that every comment is moderated.


Public Fleet Tracking And Telematics

Amin Amini from Verizon will answer your questions and challenges

View All

Recent Topics

Do you insure your technicians personal tools? Do you have any policies in regards to technicians keeping a personal inventory of their...

View Topic

Does anyone run a University fleet similar to ours? New Jersey City University has approximately 10,000 students, 1000 faculty & staff,...

View Topic

Fleet Documents

1055 Fleet Documents (and counting) to Download!

Sponsored by

An OBD-II port is included in all light-duty vehicles manufactured in 1996 or later. It allows for a scanning tool to be used with the vehicle to determine certain diagnostic information.

Read more