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SOURCE

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www.fueleconomy.gov

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New Hybrid Vehicles Increase Gas-saving Options for  Consumers

The number of hybrid vehicles available to consumers continues to grow as Ford Motor Company offers the first commercially available hybrid SUV, the Escape Hybrid, for model year 2005. Toyota Motor Corporation will also be offering hybrid versions of the Toyota Highlander and Lexus RX400 SUVs for model year 2005. Honda will be offering a hybrid version of the Accord for this model year, further increasing consumer choices for hybrid vehicles.

In addition to these new hybrids, the Honda Insight and Civic Hybrid and the Toyota Prius are still available to consumers and offer exceptional gas mileage, the best in their respective classes. These vehicles are also environmentally friendly, emitting less global warming and smog-forming emissions than most conventional vehicles. Hybrid pickup trucks are also available as General Motors Corporation continues to offer the Chevy Silverado and GMC Sierra hybrid pickup trucks to a limited number of fleet and commercial operators in selected areas.

More Hybrids Coming Soon
How Hybrids Get Great Gas Mileage

Gas-Saving, Low-Emission Choices

Chevy Silverado Hybrid (2005)

 

MPG
(city/hwy)

Price
(MSRP)

Chevy Silverado Hybrid

Automatic(2WD)

18/21

$30,345

Automatic(4WD)

17/19

$31,835

Full-size pickup truck

First hybrid pickup with MPG certified by EPA

5-13% better gas mileage than non-hybrid version

GMC Sierra Hybrid (2005)

 

MPG
(city/hwy)

Price
(MSRP)

GMC Sierra Hybrid

Automatic(2WD)

18/21

NA

Automatic(4WD)

17/19

NA

Full-size pickup truck

First hybrid pickup with MPG certified by EPA

5-13% better gas mileage than non-hybrid version

Ford Escape HEV (2005)

 

MPG
(city/hwy)

Price
(MSRP)

Ford Escape HEV

Automatic(2WD)

36/31

$27,400

Automatic(4WD)

33/29

$29,025

Sport Utility Vehicle

First hybrid SUV with MPG certified by EPA

Most efficient Sport Utility Vehicle in 2005

Honda Accord Hybrid (2005)

 

MPG
(city/hwy)

Price
(MSRP)

Honda Accord Hybrid

Automatic

29/37

$30,140

5 passenger sedan

33% better gas mileage than conventional Accord

255 horsepower

Honda Civic Hybrid (2005)

 

MPG
(city/hwy)

Price
(MSRP)

Honda Civic Hybrid

Automatic

48/47
47/48

$20,900

5-speed manual

46/51
45/51

$19,900

5 passenger sedan

First hybrid version of an established car model

40% better gas mileage than conventional Civic Sedan

Honda Insight (2005)

 

MPG
(city/hwy)

Price
(MSRP)

Honda Insight

Automatic

57/56

$21,530

5-speed manual

61/66

$19,330

Two Seater

First hybrid sold in the U.S. (introduced 2000 model year)

Light-weight aluminum body

Best gas mileage (manual transmission) of the three hybrids

Toyota Prius (2005)

 

MPG
(city/hwy)

Price
(MSRP)

Toyota Prius

Automatic

60/51

$20,975

5 passenger sedan (Midsize passenger car)

First mass-produced hybrid in the world

0-60 in 10.1 seconds

Even More Choices Coming Soon

According to automakers, consumers who care about fuel economy will have a dozen hybrid cars and trucks to choose from within the next few years. Below is a list of hybrids and their announced introduction dates.

Manufacturer

Model

Type

Estimated Date Available

Model Year 2005

Dodge

Ram Hybrid

Fullsize Pickup

2005

Lexus

RX 400h

Midsize SUV

Spring 2005

GS 450h

Midsize Car

2006

Mercury

Mariner Hybrid

Midsize SUV

2005

Toyota

Highlander

Midsize SUV

Spring 2005

Camry Hybrid

Midsize Car

Late 2006

Model Year 2006-2008

Saturn

VUE

SUV

2006

Nissan

Altima Hybrid

Midsize Car

2006

Chevrolet

Equinox

SUV

2007

Chevrolet

Malibu

Midsize Car

2007

Chevrolet

Tahoe (AHS II)

SUV

2007

GMC

Yukon Hybrid (AHS II)

SUV

2007

Mazda

Tribute Hybrid

SUV

2007

Chevrolet

Silverado Hybrid (AHS II)

Fullsize Pickup

2008

Ford

Fusion

Midsize Car

2008

GMC

Sierra Hybrid (AHS II)

Fullsize Pickup

2008

Mercury

Milan Hybrid

Midsize Car

2008

Sources: J.D. Power-LMC; Energy & Environmental Analysis (EEA), Inc.; manufacturer web sites. Updated 2/14/2005.

Exit Fueleconomy.gov The links above are to pages that are not part of the fueleconomy.gov Web site. We offer these external links for your convenience in accessing additional information that may be useful or interesting to you.

How do hybrids get such great gas mileage?

It is no accident that the most fuel efficient vehicles in some classes for the 2005 model year are hybrid-electric vehicles (HEVs). Hybrids can be configured in many different ways to achieve a variety of different objectives. They combine the best features of the internal combustion engine with an electric motor and can significantly improve fuel economy without sacrificing performance or driving range. HEVs may also be configured to provide electrical power to auxiliary loads such as power tools.

HEVs are primarily propelled by an internal combustion engine, just like conventional vehicles. However, they also convert energy normally wasted during coasting and braking into electricity, which is stored in a battery until needed by the electric motor. The electric motor is used to assist the engine when accelerating or hill climbing and in low-speed driving conditions where internal combustion engines are least efficient. Some HEVs also automatically shut off the engine when the vehicle comes to a stop and restart it when the accelerator is pressed. This prevents wasted energy from idling. Unlike all-electric vehicles, HEVs now being offered do not need to be plugged into an external source of electricity to be recharged; conventional gasoline and regenerative braking provide all the energy the vehicle needs.

Potential buyers should also be aware that the federal government is currently offering tax incentives for HEVs and other alternative fuel vehicles. Some states also offer incentives.

 

 

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Dollar signIf you buy a hybrid new, you may be eligible for a one-time federal income tax deduction of up to $2,000!

NOTICE: New legislation has changed the tax incentives for hybrid vehicles. Hybrids placed in service by December 31, 2005 are still eligible for the tax incentives described on this page.

Hybrids placed in service after this date will no longer be eligible for these deductions but may be eligible for a federal income tax credit under new legislation—the amount will depend upon the vehicle's fuel economy, estimated fuel savings, and other factors.

Watch this page for updated tax credit information as it becomes available.

Vehicles in the table to the right may be eligible for a "clean fuel" deduction of $2,000 if placed in service by the end of 2005.

If you purchased the vehicle before 2005, you can claim the deduction by filing an amended tax return for the tax year in which the vehicle was purchased.

For your vehicle to qualify, the following requirements must also be met:

Vehicle Make & Model

Model Years

Ford Escape Hybrid

2005

Honda Accord Hybrid

2005

Honda Civic Hybrid

2003-2005

Honda Insight

2000-2005

Lexus RX 400h

2006

Toyota Highlander

2006

Toyota Prius

2001-2005

* Vehicles approved by IRS as of June 27, 2005. Other hybrids may be approved at a later date.

You must purchase the vehicle new and for your own use, not for resale.

You must drive it mostly in the United States.

The vehicle must meet all federal and state emissions requirements.

Government agencies, tax exempt organizations, and foreign entities are not eligible.

Other requirements may also apply. If any of these conditions change within 3 years of purchase, you may have to return some of the money saved by the deduction.

How do I claim the deduction?

Whether you itemize or take the standard deduction, you can still claim the clean-fuel tax deduction. Unless the vehicle is purchased solely for business use, simply include the deduction on your 2004 1040 tax form in the "Tax, Credits, and Payments" section. Enter the amount of the deduction and the words "Clean Fuel" on the line next to line 35 and include the deduction in the total.

Sample of clean fuel entry in 1040 form

If you purchased the vehicle solely for business use, just claim the deduction on the "Other expenses" line of either Schedule C or Schedule F.

What if I bought my vehicle before 2004?

If you bought your vehicle in a previous tax year, you must fill out an amended tax return Form 1040X for that year.

When does this incentive end?

The current clean-fuel vehicle tax deduction will end after December 31, 2005. Hybrids placed in service after this date will no longer be eligible for these deductions but may be eligible for a federal income tax credit under new legislation—the amount will depend upon the vehicle's fuel economy, estimated fuel savings, and other factors.

Is this vehicle eligible for other tax incentives?

Maybe. Some state and local governments also provide incentives for alternative fuel vehicles, so you may want to check with your state or local government. The U.S. Department of Energy's Clean Cities Vehicle Buyer's Guide for Consumers may also have useful information on state/local incentives.

Are hybrids eligible for electric vehicle tax credits? 

No. Some sources have stated that, because gasoline/electric hybrids use an electric motor, they are eligible for electric vehicle tax credits. According to the IRS, this is incorrect.

Where can I find additional information?

IRS Home Page

Clean-Fuel Vehicle Deduction Available for Certain Models

2005 Toyota Prius Certified for Clean-Fuel Deduction;
New Law Restores Full Deduction Amount for 2004 and 2005
(includes information on other eligible vehicles)

IRS Technical Publication 535: Business Expenses (includes clean-fuel deduction information for personal use also)

Form 1040 Instructions (also includes information on Schedules C & F)

U.S. Department of Energy's Clean Cities Vehicle Buyer's Guide for Consumers

DISCLAIMER

The information on this page should not be viewed as an official or legally binding document. Other requirements or exceptions may apply. For more detailed information, please consult an IRS tax representative and/or official IRS publications.



**Recent editions of the Fuel Economy Guide are provided as Adobe Portable Document Format (PDF) files. Any PDF file can be downloaded, viewed on screen, and printed using the Adobe Acrobat Reader software. This free software can be downloaded from the Adobe Web site. Installation and setup instructions are provided on this site.

 

 

 

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