IRS Grants Deduction for Hybrid From Ford
From Bloomberg News
Ford Motor Co.’s gasoline-electric Escape sport utility vehicle became the first hybrid built by a U.S. automaker to qualify for a $2,000 U.S. tax deduction that encourages sales of low-pollution cars and trucks.
Buyers of new 2005 Escapes can claim the income tax deduction for the year in which the vehicle is first used, the Internal Revenue Service said Monday. Toyota Motor Corp.’s Prius hybrid car and Honda Motor Co.’s gasoline-electric Civic and Insight cars have qualified since 2002.
The IRS in 2002 expanded the deduction to hybrids from electric vehicles. Governments have been pushing automakers to boost fuel-efficiency and reduce pollution emissions with technologies such as hybrids and hydrogen fuel cells.
