The IRS announced yesterday (Notice 2004-16) that the 2003 and 2004 Honda Insight and the 2004 Honda Civic Hybrid are eligible for the "Clean Fuel Deduction."
The deduction - $2,000 for vehicles bought in 2003 and $1,500 for 2004 purchases - is taken on line 33 of form 1040 by entering "clean fuel" next to the line and entering the deduction on the line. No separate form is required, and the deduction is available both to itemizers and non-itemizers.
The IRS has already certified the 2004 Toyota Prius for the deduction.
2004 Honda Insight
The items included in the Tax Update Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation.
Joe Kristan writes the Tax Update items, and any opinions expressed or implied are not necessarily shared by anyone else at Roth & Company, P.C. Address questions or comments on Tax Updates to