2005 Hybrid Auto Tax Break
You may qualify for a one-time $2,000 clean-fuel vehicle tax deduction on your 2004 or 2005 ULEV/Hybrid vehicle.
If you purchased your new ULEV/Hybrid vehicle in 2004/2005 you may qualify for a one-time $2,000 clean-fuel vehicle federal tax deduction.
For detailed information, please review the following IRS guidance and consult your tax advisor:
1. Press Releases
a. If you purchased your Hybrid vehicle in 2004, please visit the following:
2004 IRS press release.
b. If you purchased your Hybrid vehicle in 2005, please visit the following:
2005 IRS press release.
2. For guidance on claiming the deduction on your individual income-tax return please contact us or click to view the IRS document,
Publication 535, Business Expenses.**
3. You may also go directly to
www.irs.gov and enter "Hybrid" into their Search function to access all relevant information.
4. Refer to Chapter 12, page 44, "Electric and Clean-Fuel Vehicles" for information on how to complete the process.
Key notes:
Chapter 12 Introduction, page 44: "Important Reminder" includes credit and phase-out schedule information.
Chapter 12, page 45, right-hand column: "Deduction Limit" includes deduction-limit information.
Chapter 12, page 46, middle column: "How to Claim the Deductions"
Reference "Deduction for Non-Business Clean-Fuel-Vehicle Property by Individuals." Includes information on where to claim the deduction (i.e., Form 1040, Line 33 for non-business use).
Please note: Since the IRS updates its publications and instructions from time to time, check irs.gov and/or your tax advisor to make sure you have the most up-to-date IRS information.
5. Additionally, your state may have tax incentives for which you may also qualify. Please see your tax professional for more information.
6. For even more guidance regarding the clean-fuel vehicle deduction, please consult the IRS Digital Daily at:
www.irs.gov.
*Information provided is for general informational purposes and does not constitute tax advice. For details on the deduction, consumers should check with their tax advisors or the IRS Web site at www.irs.gov.
** Department of the Treasury/Internal Revenue Service Publication 535, Cat. No. 15065Z, "Business Expenses"
