IRS Supports Deduction for Electric-Hybrid Cars
The Internal Revenue Service (IRS) has decided that consumers who buy a gasoline-electric hybrid vehicle can qualify for a $2,000 tax deduction. The deduction is aimed to offset much of the added cost to consumers of buying a hybrid powertrain over a convention gasoline engine. Three hybrids are now available to consumers, at about $20,000: Toyota’s Prius, Honda’s Insight, and hybrid version of Honda’s Civic. Ford said it will have a hybrid version of its Escape SUV available in the fourth quarter 2003.