This month Ford'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, according to news reports. Buyers of hybrid gas-electric vehicles typically may take a special "clean-burning fuel" deduction of $2,000. The IRS recently added the Ford Escape Hybrid sport-utility vehicle for model year 2005 to the eligibility list. This one-time deduction must be taken in the year in which the vehicle originally is used, and the taxpayer must be the original owner. Taxpayers don't have to itemize their deductions to claim it. The IRS previously approved the Toyota Prius hybrid for model years 2001-2005; the Honda Insight hybrid for model years 2000-2004; and the Honda Civic Hybrid for 2003-2004.
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