The Civic Hybrid starts around $20,000 and qualifies for a $2,000 clean-fuel federal tax deduction.
But you better act fast, as the clean-fuel vehicle tax deduction will be reduced to $500 in 2006 and will end in 2007.
Union lobbyists repeatedly said the bill would cripple the payroll deductions that fuel labor's political efforts while continuing to allow similar deductions at 360 organizations and private companies, including insurers, that spend money on politics.
Among the tax breaks that would be extended under Brady's bill are those for alternative fuels, racehorse expenses, the deduction for private mortgage insurance and NASCAR expensing.
We wanted to explore these groups' willingness to push for cuts in the enormous amounts of taxpayer money that members of Congress give to the fossil fuel lobby through tax deductions, tax credits, cheap access to public property, pollution clean up, and government-funded R&D and general cheerleading.
Last month, the Internal Revenue Service issued a ruling that the federal tax deduction for alternative-fuel vehicles also applies to hybrids.
DealBook » How the I.R.S. Encourages Oil and Gas Spinoffs | A tax loophole has in effect become a subsidy for fossil fuel production, Victor Fleischer writes in the Standard Deduction column.
Nissan figures on a $7,500 income tax deduction, plus the money saved by fueling with electricity, to be able to say the cost is less than $30,000.
The Hill reports that the groups behind the campaign support legislation "that would strip billions of dollars of tax deductions, royalty incentives and federal fossil fuel research programs," and claims to save about $113 billion over 10 years.
If it is rented for more than 14 days, the income must be reported and deductions for things like maintenance, commissions, utilities, fuel and depreciation can be taken, subject to limitations in the tax laws.
