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Tax Relief Extended for Hybrid Vehicle Owners October 2004
With President Bushs signing of the Working Families Tax Relief Act of 2004 on Monday, a federal tax deduction on the purchase of electric drive vehicles that would have been phased out was eliminated.
Under the previous law, qualified hybrid electric vehicles were eligible for a tax deduction of $2,000 in 2003, $1,500 in 2004, $1,000 in 2005 and $500 in 2006. Under the new law, qualified hybrid electrics are eligible for the full $2,000 deduction in 2004 and 2005.
Electric drive vehicles include battery electric, hybrid electric and fuel-cell electric vehicles.
The bill also has measures designed for the use of qualified heavy-duty battery electric and hybrid electric vehicles used by fleets and other businesses.
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