Washington (Sept. 9, 2002) -- The Internal Revenue Service has certified two more hybrid gas-electric automobiles as eligible for the clean-burning fuel deduction.
Purchasers of a new Honda Insight for model years 2001, 2002 and 2003 and purchasers of a Honda Civic Hybrid for model year 2003 will be able to claim a deduction of $2,000 for the year that the vehicle was first put into use.
The amount of the deduction for the Honda was set after the manufacturer documented for the IRS the incremental cost related to the vehicle’s electric motor and related equipment. American Honda Motor Co., Inc. submitted the necessary information to the IRS under a process issued in May.
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.
-- Electronic Accountant Newswire staff
