[Note: The information below applies only to Tax Years 2005, 2004 and 2003. New rules were initiated under the Energy Policy Act of 2005, which apply to Tax Year 2006.] 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. These vehicles qualify for the clean-fuel vehicle deduction: Ford Escape Hybrid — Model Year 2006 Mercury Mariner Hybrid — Model Year 2006 Lexus RX 400h — Model Year 2006 Ford Escape Hybrid — Model Year 2005 Toyota Prius — Model Years 2001 through 2006 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 Individuals must use Form 1040, not one of the shorter forms, to claim this deduction. They should put "Clean-Fuel" and the deduction amount on the dotted line to the left of line 36, including this amount in that line's total adjustments to income. (They would have used line35 on the 2004 Form 1040; line 33 on the 2003 Form 1040; line 34 on the 2002 form; line 32 the previous two years.) Qualifying individuals who did not claim the deduction when they filed may claim it on an amended return (Form 1040X). Generally, taxpayers may amend returns up to three years from the original return's due date. Related Information on the new Hybrid Vehicle Credit for 2006 IRS news releases announcing these qualifying vehicles: 2006 Toyota Prius Hybrid 2006 Ford Escape Hybrid and Mercury Mariner Hybrid 2006 Toyota Highlander Hybrid 2006 Lexus RX 400h 2005 Ford Escape Hybrid 2005 Toyota Prius 2004 Toyota Prius 2004 Honda Civic Hybrid, 2003 and 2004 Honda Insight 2001, 2002 and 2003 Toyota Prius (86K PDF) 2000, 2001 and 2002 Honda Insight; 2003 Honda Civic Hybrid (111K PDF) Form 1040X (110K PDF) — Amended U.S. Individual Income Tax Return Instructions for Form 1040X (45K PDF)
