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FORD ESCAPE QUALIFIES FOR HYBRID FUEL DEDUCTION

December 14, 2004

The IRS has certified the 2005 Ford Escape SUV as qualifying for the clean-fuel deduction. This $2,000 deduction is available to individual taxpayers for the year the vehicle is purchased.

This is the first SUV, and the first "big 3" American nameplate vehicle, to qualify for the deduction. The clean-fuel deduction is "above the line" and available to non-itemizers. There is no separate return line or form for the deduction; you just add $2,000 to the amount on line 35, which is the total of adjustments to income, and write "clean fuel" next to the total.

Ford Escape

The 2005 Toyota Prius has also been certified. The 2004 Honda Insight and Civic Hybrid models also qualify.

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