Two Honda models powered by gasoline-electric powertrains – the Civic Hybrid and Insight – are eligible for a $2,000 federal tax deduction as confirmed in new guidance from the Internal Revenue Service (IRS). According to Honda, in just issued guidance, the IRS clarifies that hybrid vehicles are eligible for the "clean-fuel" vehicle deduction provided by section 179A of the Internal Revenue Code. Vehicles considered hybrids include those powered both by a gasoline internal combustion engine and an electric motor that is recharged as the vehicle operates. For hybrids purchased in past years, the IRS has said "the deduction would apply not only to returns being filed for tax year 2002, but also for the previous two years for which hybrid vehicles were available. The deduction could be claimed for a past year by a taxpayer filing an amended return." Under current law, the clean-fuel vehicle tax deduction is phased out for tax years 2004 to 2006. The above is provided for general informational purposes and does not constitute tax advice. For details on the deduction, consumers should check with their tax advisors or the IRS website at Introduced in April 2002, the Civic Hybrid sedan uses Honda’s gasoline-electric Integrated Motor Assist (IMA) technology. Its 1.3-liter 4-cylinder gasoline engine and 10-Kilowatt electric motor achieve an EPA estimated fuel economy of 46/51 city/highway, according to Honda. The Civic Hybrid seats five passengers, is available with an automatic or manual transmission, and has a starting MSRP of $19,550. The Honda Insight, a 2-passenger hatchback, also features Honda’s gasoline-electric IMA technology, a 1.0-liter 3-cylinder gasoline engine and a 10-Kilowatt electric motor drivetrain. The Insight has a starting MSRP of $19,080 and the model equipped with manual transmission achieves an EPA estimated fuel economy of 61/68 city/highway, according to Honda.