WASHINGTON, D.C. --- The Internal Revenue Service (IRS) has certified the 2006-model year 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. 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. A complete list of vehicle models that have been certified for the clean-burning fuel deduction can be seen on the IRS Web site.

Originally posted on Fleet Financials