Work Truck Logo
MenuMENU
SearchSEARCH

IRS Certifies Ford Hybrids For Tax Deduction

Mercury Mariner and Ford Escape Hybrids joins short list of clean-fuel vehicles eligible for deduction.

by Staff
December 1, 2005
2 min to read


The Internal Revenue Service (IRS) has certified Ford Motor Company’s model year 2006 Ford Escape and Mercury Mariner Hybrids as being eligible for the clean-burning fuel deduction, according to AutoChannel.com. The certification means that customers who purchased either SUV during the 2005 calendar year may claim a tax deduction of up to $2,000 on their 1040 Form. The Escape and Mariner Hybrids join a short list of clean-fuel vehicles, which includes the 2005 Ford Escape Hybrid and six other vehicles from Lexus, Toyota and Honda that have been certified by the IRS. According to the IRS, “Federal law allows individuals to claim a deduction for the incremental cost of buying a motor vehicle that is propelled by a clean burning fuel.” The amount of the deduction for the Escape and Mariner was established after Ford documented for the IRS the incremental cost related to the vehicles’ electric motor and related equipment. The one-time deduction must be taken in the year the vehicle was originally used, can only be taken by the original owner and does not apply to leased vehicles. Even if a taxpayer does not itemize deductions, the vehicles can still qualify as an adjustment to income on their 1040 Form. The actual amount of savings, however, depends on factors such as an individual’s tax bracket. The hybrid purchase deduction expires on Dec. 31, 2005 under Section 1348 of the Energy Act of 2005, and will be replaced by a tax credit starting in 2006. The only American automaker to produce hybrids, Ford currently produces 24,000 annually and has plans to have five hybrids on the road by 2008. The company also plans to increase its hybrid production to approximately 250,000 vehicles annually by 2010.

More Small Fleet

Safe Driving on Halloween over spooky fall road
Safety & Compliance•by Staff•October 25, 2026

Tips for Driving Safely on Halloween Night

This video features a reminder from the Connecticut Department of Transportation (DOT) and the Connecticut Police Chiefs Association, urging drivers to prioritize safety this Halloween.

Read More →
Safety & Compliance•by Staff•October 12, 2026

Simple Tire Checks That Help Keep Your Business Fleet Moving

A survey found that nearly one in every 10 passenger vehicles has at least one bald tire. What's more, 27% -- more than one in four -- of vehicles are driven with one or more severely under-inflated tires.

Read More →
Cover of the "Top 50 Green Fleets" report presented by Automotive Fleet and Inspiration Fleet, featuring an aerial nighttime photo of a lit highway interchange with looping ramps.
Sustainability•July 16, 2026

The Top 50 Green Fleets

The List Is in: The Top 50 Green Fleets

Read More →
Ad Loading...
 Drivers in a safety meeting at Wheelz Up
Safety & Compliance•by Amy Hercher•July 14, 2026

Developing Budget-Friendly Driver Safety Programs

From driver training and safety meetings to one-on-one coaching and incentive programs, several small fleets share how they have developed a safety culture with their drivers using low- to no-cost resources.

Read More →
Sponsored•March 9, 2026

Boosting Last-Mile Fleet Uptime, Safety, and Value with AI Vehicle Inspections

AI-powered inspections are transforming last-mile fleets by replacing manual checks with highly accurate automated scans that detect defects in seconds. By giving fleet operations visibility into the daily condition of their vehicles, you can identify trends over the vehicle’s lifecycle that enable improved procurement decisions, route management, driver training and accountability.

Read More →
Safety & Compliance•February 4, 2026

Five Ways Seat Belts Help Prevent Injuries

There are five ways seat belts protect occupants from injuries, according to the Tennessee Department of Safety and Homeland Security.

Read More →
Ad Loading...
Sponsored•January 19, 2026

Basic Tracking vs Next Generation Fleet Technology

Fleet software is getting more sophisticated and effective than ever, tying big data models together to transform maintenance, safety, and the value of your existing tech stack. Fleet technology upgrades are undoubtedly an investment, but updated technology can offer a much higher return. Read how upgrading your fleet technology can increase the return on your investment.

Read More →
Sponsored•January 14, 2026

It’s here: The 2026 Fleet Technology Trends Report

What does AI mean for fleets? Get the answer — and learn other top tech trends.

Read More →
Wreaths Across America graphic highlighting the role of small fleets in delivering wreaths to honor veterans, featuring wreath icons and the American flag.
Vocational Fleets•by Lauren Fletcher•December 8, 2025

Small Fleets, Big Impact: How Independent Drivers Power Wreaths Across America

Check out how small fleets and independent drivers power Wreaths Across America each December and why their impact matters more than ever.

Read More →
Ad Loading...
A stressed person covers their face, illustrating that 65% of small fleet managers handle all operations alone, according to a Vehicle Management Systems (VMS) survey.
Small Fleet•by Staff•November 12, 2025

VMS Survey Finds 65% of Small Fleet Managers Run Operations Alone

A new VMS survey shows small fleet managers are stretched thin, with most handling operations solo and eager to adopt digital tools for relief.

Read More →