Tax 2004 Reminder: Did you buy any Hybrid car?

The Working Families Tax Relief Act of 2004 postponed the phasing
out of the deductions ($2000) for hybrids and other alternative-fuel
vehicles and the credit for fully electric vehicles. These deductions and
credits were scheduled to start phasing out in 2004.

So if you had bought a hybrid car last year, you can still claim the full
$2,000 deduction on your 2004 returns (on line 35 of form1040). If you
buy an environment-friendly auto this year, you'll also get the full
deduction. In 2006, the deduction drops to $500 and it will no more be
there in 2007.

Similarly, the phasing-out of deduction for fully electric cars (a higher
$4000 credit) is postponed until 2006 but will be phased out by 2007.