IRS Certifies Toyota Highlander Hybrid as a Clean-Fuel Vehicle

The IRS has certified the 2006 Toyota Highlander as eligble for the clean-fuel vehicle deduction. If you purchase the Highlander or other hybrid cars new (not pre-owned), the IRS allows you to take a clean-fuel deduction of up to $2,000 on your 1040.

According to the current tax law, you can take a deduction of up to $2,000 on your 2005 tax return. The deduction goes down to $500 in 2006, and no deduction after that. (This tax benefit may be extended, but this is how things stand right now.)

Toyota Highlander Hybrid Certified for the Clean-Fuel Deduction
List of All Vehicles Certified for the Clean-Fuel Vehicle Deduction
Hybrid Car Tax Deduction - from the About.com Guide to Hybrid Cars