Ford Escape and Mercury Mariner Hybrids Certified for the Clean-Fuel Deduction
The Internal Revenue Service has certified the model year 2006 Ford Escape and
Mercury Mariner Hybrids 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.
The deduction was scheduled to reduce to $500 in 2006 but a new credit has now
replaced this deduction, effective January 1, 2006. There may be tax incentives
to wait until 2006 for those new purchases. (See
New Tax Credits for 2006.)
More details are available from the IRS web site.
Here is a link that lists all the models that qualify (at least as of when this news item was recorded).