Toyota Motor Corp.'s Lexus division says buyers of its new RX 400h hybrid cross/utility vehicle can claim a one-time tax deduction of up to $2,000.
Lexus says the clean-burning fuel deduction can be claimed on Form 1040 under the Working Families Relief Act of 2004. Vehicles put into service this year can claim up to $2,000, while those put into service in 2006 are eligible for $500. The Internal Revenue Service has no plans as of now to offer a deduction after 2006, says Lexus. The deduction is not available to those who lease an RX 400h.
The RX 400h, with its 3.3L V-6 gas/electric powerplant, has a fuel economy rating of 31 mpg city (7.6 L/100 km) and 27 mpg (8.7 L/100 km) highway.