Washington (August 13, 2002) -- The Internal Revenue Service has certified the first hybrid gas-electric automobile as being eligible for the clean-burning fuel deduction.Purchasers of a new Toyota Prius for model years 2001, 2002 and 2003 will be able to claim a deduction of $2,000 for the year that the vehicle was first put into use.
Under the law, $2,000 is the maximum amount of the one-time deduction, which must be taken in the year the vehicle was first used. Individuals take this benefit as an adjustment to income. They do not have to itemize deductions on their tax returns to claim it. Taxpayers may claim the deduction for a past year by filing an amended return.
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