Clean-Fuel Vehicle Deduction - February 2004

Federal tax law allows individuals to claim a deduction for the incremental cost of buying a motor vehicle that is propelled by a clean-burning fuel (i.e., hybrid vehicles). Under current law, the clean fuel vehicle deduction is $2,000 for vehicle that was purchased before December 31, 2003. The $2,000 maximum deduction will be reduced by 25% for vehicles placed into service in 2004, by 50% in 2005 and by 75% in 2006. No deduction will be allowed after December 31, 2006.

These vehicles qualify for the clean-fuel vehicle deduction:

• Toyota Prius — Model Years 2001 through 2004

• Honda Insight — Model Years 2000 through 2004

• Honda Civic Hybrid — Model Years 2003 and 2004

Please contact Feeley & Driscoll's Accountants and Consultants by Email or call 1 (888) 875-9770 to learn more.

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