American Honda Motor Co., Inc. today announced that the Accord Hybrid, Civic Hybrid and Insight vehicles have received certification from the Internal Revenue Service (IRS) that makes them eligible for a clean-fuel deduction, entitling purchasers of eligible vehicles to make a one-time $2,000 tax deduction on their tax return.
According to the recently signed Working Families Relief Act of 2004, the one-time deduction must be taken in the year in which the vehicle is used for the first time. It was designed to encourage the purchase and use of vehicles using low emission and high fuel efficiency technologies. The $2,000 deduction applies to original purchases of eligible vehicles made in the 2004 and 2005 calendar year, and is scheduled to decrease to $500 for the 2006 calendar year. The IRS had previously certified the Insight (2000-2004) and the Civic Hybrid (2003-2004).
In December 2004, Honda demonstrated its leadership in hybrid vehicle technology with the introduction of the Accord Hybrid, the world's first V-6 hybrid and the first hybrid vehicle to deliver both improved fuel economy and increased performance. The Accord Hybrid is Honda's third hybrid vehicle, following the introduction in December 1999 of the two-passenger Insight, the first hybrid sold in America and the most fuel-efficient car in America for six years running. In 2002, Honda added to its hybrid family with the introduction of the Civic Hybrid, a hybrid version of America's best selling small car.