Several models of hybrid vehicle placed in service by the end of 2005 are eligible for a clean fuel deduction of $2,000. Those put in use during 2006 could be eligible for a $500 federal income tax deduction.

Under current legislation cars purchased after 2006 won't be eligible for a deduction. If you purchased a hybrid vehicle before 2005, you can submit a claim for the deduction by filing an amended tax return for the tax year in which the automobile was bought.

The following stipulations must be met for your hybrid vehicle to qualify:

* You must buy the automobile new and for your own use. Automobiles purchased for resale don't qualify.

* You must drive the vehicle "mostly" in the United States.

* The automobile must meet all federal as well as state emmissions requirements.

* Government agencies, tax exempt organizations, and foreign entities are not eligible for the deduction.

* If any of the above conditions change within three years of the automobile purchase, you may be required to return some of the money saved by the deduction.

The following vehicles currently qualify for the deduction. Other hybrids may be approved at a later date:

2005 Ford Escape Hybrid
2005 Honda Accord Hybrid
2003-2005 Honda Civic Hybrid
2000-2005 Honda Insight
2001-2005 Toyota Prius

Whether you itemize or take the standard deduction doesn't matter. Either way, you can still claim the clean-fuel tax deduction. Simply include the deduction for your hybrid automobile on your 1040 form in the "Tax, Credits, and Payments" section. Enter the appropriate amount of the deduction you're claiming and the words "Clean Fuel" in the space to the left of the block for line 35 and include the deduction for your hybrid automobile in the total.

Those are the basics of hybrid cars in general. We will divide hybrids into two categories to examine further how the three components work together. Each category of hybrids incorporates the three components in its own way.

Mild Hybrids -
In the mild hybrid configuration the electric motor isn't able to function independently of the gas internal combustion engine. The vehicle is powered primarily by the gas engine, and the electric motor only provides supplemental power to assist when needed. The electric motor is capable of drawing energy from the battery or generating electricity to charge the battery, but it isn't capable of doing both at the same time. The Honda Civic and Insight are mild hybrid cars.

Full Hybrids -
Full hybrid cars integrate the three components in a way that grants the electric motor and the gas engine to operate independently of each other. For instance the electric motor is capable of operating on its own to provide light acceleration at low speeds. The gas engine then starts up and takes over at higher speeds. Both the electric motor and gas engine can operate in unison when more power is needed during hard acceleration, such as when climbing hills. Full hybrids are also able to draw energy from the battery and charge it at the same time. The Toyota Prius and Ford Escape are full hybrids.

Despite their differences, both types of hybrid vehicles achieve the goal of increased fuel economy and decreased emissions over standard gas or diesel powered vehicles.

Hybrid automobiles are considered to be the automobile of tomorrow. Because of the benefits it can give you, you'll definitely want to get one for your own. In fact, more and more people are now considering selling their conventional vehicle and buy a hybrid automobile. So, why is it that more and more people like getting a hybrid automobile instead of a conventional vehicle even if hybrid automobile retail prices are far more costly?

The answer to this is that these people are thinking of the long term benefits that a hybrid car can give. With a hybrid car, you can cut fuel consumption in half compared to conventional vehicles. Hybrid cars will be able to give you maximum fuel efficiency. It will be able to give you far better mileage to the gallon. Just envision, with a hybrid car, you can get more than 60 miles to the gallon of gasoline.

This is because hybrid automobiles run on two engines. One is the conventional internal combustion engine that you'll find in conventional cars and the other is the electric motor and batteries. Hybrid automobiles are basically vehicles that combine electric energy and gasoline energy. By combining these two to power your automobile, it will run quieter, cleaner and far more efficient than conventional cars. These are the main advantages of hybrid cars.

Another advantage is that you will be able to save more money from tax breaks imposed by the US government to hybrid car users and buyers. If you own a hybrid car, you'll be able to care about tax breaks. Also, you will be able to like free parking and other incentives that the government imposed on hybrid automobile owners.

Now that you know about the main pros of the hybrid vehicles, you also need to know what the cons of hybrid vehicles are.

People have been purchasing hybrid cars because of the ability of saving a lot of money from fuel consumption. However, the main advantage of hybrid vehicles, which is the electric motor, is also its downfall. When a hybrid vehicle is involved in an accident it will be difficult for you and the rescuers to get you out of the car because of the dangers of electrocution. Hybrid automobiles carry massive amounts of voltage. When it gets involved in an accident, wires from the battery might tear off and will be potentially hazardous to handle.

Another disadvantage of hybrid vehicles is that the retail price is higher than conventional automobiles in the same weight class. However, the hybrid automobile can counter this disadvantage by allowing consumers to save money in a long term basis. When you look at it in a long term basis, hybrid cars tend to be cheaper than conventional cars. Try and compute the amount of gasoline both vehicles will consume during its lifetime and add it to the retail price of the car. You will see that the conventional automobile will tend to be more expensive than hybrid vehicles when you look at it in a long term basis.

These are the pros and cons of hybrid vehicles. You can see that it contains more advantages than disadvantages. Most hybrid vehicles this day are now integrated with the latest technology in vehicle safety. So, if you are planning to purchase a vehicle, think hybrid.

If you are a type of person who likes exotic high speed sports automobile, then you should prepare to spend a lot of money on gasoline. Sports vehicles are known to have huge engines to reach high amounts of speed. Having large engines mean that it will also consume massive amounts of fuel.

For the typical person, this kind of automobile is definitely not something that they should drive each day, especially because of the rising prices of gasoline. However, why do people still drool and save money to purchase these high-priced sports automobile? Maybe it's because of the high speed ability that they have the ability to take advantage of whenever they feel the need for speed, or maybe because it's because of the sleek and stylish look of these automobiles.

Hybrid technology is now being used to produce fuel efficient vehicles. These cars are designed to be lightweight, and aerodynamic with small engines to maximize fuel efficiency. However, hybrid automobiles are relatively slow because of the small engine. Hybrid cars existing this day are designed for city or local driving where you don't need to go on high speeds. You've to take into account that these vehicles are designed to be fuel efficient.

However, vehicle manufacturers this day are now opening up a new line of hybrid automobiles. Some already built a prototype or a concept automobile to be shown to the public. These hybrid vehicles are designed to accomplish high amounts of speed but at the same time, take advantage of the hybrid technology to save fuel.

High speed hybrid sports cars are being designed by car manufacturers this day to satisfy consumers who like to go at high speeds and at the same time, save fuel. The gasoline-electric engine concept is so popular this day that manufacturers, such as Toyota and Honda are now opening a new line in their factory that produces hybrid sports automobiles.

Major auto shows have shown different hybrid sports vehicle concepts from different huge automobile manufacturers. One is the high performance hybrid sports automobile from Mitsubishi called the Mitsubishi Eclipse Concept-E. This hybrid concept sports automobile is a very good example of what sports cars will look like in the near future.

Mitsubishi's Eclipse Concept-E takes advantage of the hybrid technology. The front wheels are driven by the parallel hybrid system. This means that the electric motor is integrated with the gasoline engine, which is a 3.8 liter V6. With the gasoline engine and the electric motor, it is able to have a power output of 270 horsepower.

The new generation of sports vehicle like the Mitsubishi Eclipse Concept-E is only one of the concept hybrid sports cars that are now being talked about by sports car fanatics. With the hybrid technology integrated into sports automobiles, you'll definitely save a lot of money on fuel while letting you combine fuel efficiency and power all in one package.

Hybrid sports automobile is definitely the sports automobile of the future. It is now possible to have a sports automobile that's able to save fuel and still give you maximum performance. With hybrid sports automobile, you can now own a luxury sports automobile that's able to cut fuel consumption. You can satisfy your speed urges without sacrificing massive money for fuel.

The Highlander Hybrid SUV is a seven-passenger car that doesn't sacrifice comfort for fuel economy. The hybrid model is just like the gas Highlander. It handles just as well, has a simple cabin design, and maintains the same 81 cubic feet of cargo capacity. The difference is that it achieves much greater fuel economy while being more powerful. Yes, you might go back and read that again. The hybrid version of the Highlander is actually MORE powerful than the gas model.

Toyota used the same 3.3 liter V6 in the hybrid SUV that it uses in the gas Highlander. They recalibrated it and added three electric motors. One of the electric motors is used for starting the internal combustion engine and also recharging the 288-volt battery pack. One works with the gas engine to drive the front wheels. And the other adds additonal power to the rear wheels when extra traction or power is needed (the third electric motor is not used on front-wheel drive models).

Do not let the silence fool you when starting the Toyota Highlander Hybrid SUV. The gas engine won't kick in until you hit 25 mph or you turn on the air conditioning.

The hybrid Highlander isn't lacking for power. In fact, the hybrid model boasts a whopping 268 horsepower compared to the gas model's 230. Acceleration is responsive at any speed with the electric motors handling the low-end pull, and the gas engine hitting its stride in midrange. The Highlander Hybrid went from zero to 60 in 7.2 seconds in track testing, making it one of the fastest SUVs (hybrid or internal combustion) in its price range.

During testing the Highlander Hybrid SUV only attained a 23 mpg average fuel economy. This was a bit disappointing, especially since Toyota claims 31 mpg city and 27 mpg highway, but in the 7-8 passenger SUV class it really doesn't get much superior than that. Hybrids perform much better in terms of fuel economy at low speeds because this is where they use more electricity than gas. While stuck in traffic the Highlander got about 30 mpg.

The 2006 Highlander Hybrid comes with more standard features than the gas model. The model tested came standard with leather and side airbags. But even after adjusting for the extras, you can anticipate to pay about $3,000 more for the hybrid over the conventional model. One incentive to purchase the hybrid model is you can take a $2,000 tax credit if you buy in 2005. However in 2006 the federal tax incentive drops to $500.

The 2006 Toyota Highlander Hybrid SUV is the only hybrid that seats seven passengers.

2006 Lexus RX 400h

The Lexus RX 400h hybrid SUV is essentially the best-selling RX 330 with a hybrid drivetrain installed. And the wait list for the hybrid model was so long that Lexus was forced to set up a communication system specifically for keeping customers updated on the vehicle's progress. Due to the early buzz created by the RX 400h, Lexus is now planning hybrid versions of the GS and LS sedans.

The RX 400h hybrid SUV uses the same drivetrain as the Toyota Highlander Hybrid and is rated for fuel economy at 31 mpg city and 27 mpg highway. The Lexus is available in all-wheel drive only.

The RX 400h is 100 pounds heavier than the Highlander, but equalled the Toyota's zero to 60 time at 7.2 seconds. In the quarter mile the Lexus slightly outperformed the Toyota hybrid SUV at 15.3 seconds.

Like the Highlander, the Lexus RX 400h has more power than it's gas counterpart. Even at 300 pounds heavier than the RX 300, the 400h felt considerably faster, even when easily ascending steep highway grades. The RX 400h has a tighter suspension than the Highlander Hybrid, as well as 18-inch tires, which made for better handling and an exciting drive.

The Lexus delivered a disappointing 22 mpg average, with the best tank at 24 mpg. Despite those numbers, compare it with the gas RX 300 which when tested only averaged 16 mpg.

There's a marked increase in engine noise with the RX 400h when under hard acceleration. More so than with the RX 330. There was a similar problem with the Toyota, but the difference seemed greater in the Lexus.

The Lexus RX 400h hybrid SUV has a sticker of $11,000 more than the base RX 330, but it comes with just about each possible feature. If you add all of those features to the RX 330, the difference is only about $3,000 which is comparable to the difference in the Toyota models.

Tips for Drivers of Hybrid Cars

Maintenance Tips for Hybrid Cars

Hybrid cars tend to have long warranties. The Honda Insight comes with an 8 year/80,000 mile warranty that includes most of the powertrain, including batteries, and a 3 year/36,000 mile warranty on the rest of the car. The Toyota Prius has an 8 year/100,000 mile warranty on the hybrid and battery systems, and a 3 year/36,000 mile warranty on everything else.

Batteries and electric motors in these hybrid cars don't require any maintenance over the life of the vehicle. The gas engine doesn't require any more maintenance than the gas engine in a conventional vehicle. In hybrids with regenerative braking, the brake pads may last longer than those in other cars.

Battery systems in hybrid cars are pretty spendy with a several thousand dollar price tag. By the time the warranty expires though, that price may have decreased.

Gas Mileage Tips for Hybrid Cars

By using the same driving habits that result in better fuel efficiency in conventional vehicles, you will achieve better mileage in your hybrid vehicle as well.

Drive slower - The faster you drive, the greater the aerodynamic drag on the car. Drag force at 70 mph is nearly double that of drag at 50 mph. Going easy on the accelerator will increase your fuel economy significantly.

Maintain a constant speed - Accelerating uses energy. Some of this energy is wasted when you slow back down. Maintaining a constant speed makes the most efficient use of fuel.

Avoid stopping abruptly - The electric motor in hybrid cars acts like a generator, and uses some of the energy while slowing the vehicle. By giving the electric motor more time to slow the vehicle, it is able to recover more of the energy. By stopping abruptly, the brakes do most of the work in slowing the vehicle and that energy is wasted.

The introduction of the Honda Insight and Toyota Prius in the 1990s marked the first true success of hybrid vehicle technology. Plug-in hybrid-electric cars were developed in the 2000s. The PHEVs can be recharged by plugging in to the electrical power grid, and for short trips can operate without conventional fuel. Renault released the firstr PHEV production model dubbed the Kangoo in 2003.

Since its release, the Prius has remained in high demand. Newer designs of hybrid automobiles are less expensive and look more like their conventional counterparts. The new hybrids often look and perform exactly as their gas-powered siblings, but deliver 50% better fuel efficiency. For instance, the Honda Civic Hybrid looks exactly like the gas version. But it gets 50 miles per gallon.

In 2004 the first hybrid SUV, the Ford Escape Hybrid was introduced. 2005 saw two new hybrid SUVs in the Toyota Highlander Hybrid and the Lexus RX 400h. Within the coming decade, Toyota has plans to add hybrid drivetrains to each model of vehicle it produces. Honda has also released the Accord Hybrid, and Nissan is planning a hybrid model of the Altima.

Hybrid vehicle registrations in the United States rose 25.8% between 2002 and 2003. California has the most hybrid cars registered. Toyota sold 306,862 hybrids between 1997 and November 2004. Honda sold 81,867 hybrids between 1999 and November 2004.

Hybrid automobiles are one of the latest innovations in the car industry this day. Because of the rising cost of fuel, automobile manufacturers have integrated the hybrid technology in their cars. The concept of the hybrid engine technology is actually very simple to explain. Although hybrid vehicles still use fuel, it can efficiently save it. This is because the hybrid technology combines the electric motor technology with the gasoline engine.

With the hybrid technology, it allows consumers to save as much as 30 miles a gallon on fuel. The main advantage of hybrid vehicles is when the vehicle stops or when it is running on idle mode, it automatically shuts off the gasoline engine. However, the car will continue running but it will run on the electric motor. Therefore, it saves a lot on fuel. Just imagine being stuck on traffic, with the hybrid technology, you'll never waste precious and pricey fuel when the car is running idle. This is also the reason why hybrid cars are so quiet when it is stationary. When you step on the accelerator, the gasoline engine automatically turns on again.

Another reason why hybrid automobiles are now preferred by most people is that it emits lower levels of toxic emissions. This means that hybrid vehicles are environmentally friendly. Just imagine, if all people would start using hybrid automobiles, it will lessen the emission of carbon dioxide. For this reason, it will effectively stop global warming.

Because hybrid vehicles can both help in saving precious fuel and reduce the emission of toxic fumes, the government is now taking all the necessary steps to promote the hybrid technology. The consumer who owns a hybrid vehicle can enjoy more benefits than you may envision. Not only will they save a lot of money on fuel, and help produce a cleaner environment, but they have the ability to also enjoy tax rebates.

Back in 2005, the President of the United Says signed an agreement back in the year 2005 that says that hybrid vehicle buyers will be able to like huge amounts of tax relief. However, the amount of money you will save on the tax incentives will also vary on the hybrid vehicle you buy.

The first one you've to consider when getting a tax break is that it will depend on the fuel efficiency of the hybrid vehicle you purchased when you compare it to a conventional car in the same weight class manufactured back in the year 2002. The more it saves fuel, the more massive the tax break will be.

The tax break imposed on a hybrid vehicle will also vary on the amount of gasoline that the hybrid vehicle can save in its total years of operation when it is compared to a conventional car in the same weight class. The more gasoline it saves, the bigger your tax relief will be.

It is a fact that hybrid cars can be high-priced. However, just consider the long term benefits that the hybrid vehicle can give you. If you calculate overall total expenses of a hybrid automobile and compare it to the total expenses of a conventional automobile during its lifetime, you will see that you can save more money on fuel. You'll also save money on taxes. You will see that purchasing a hybrid car is definitely a good investment that all people should think about.

Not only will you be able contribute in producing a cleaner environment and save a lot of money on precious, expensive and limited supply of fuel, but you'll also save a lot of money on tax rebates for hybrid car buyers.

This video really does a great job comparing all facets of fuel costs and carbon footprint. Who wins?

Find out for yourself.... here's a hint we sell the winning model at California Hybrid Cars.

Which car do you think is better?