Things You'll Need:
- Hybrid vehicle
- Internet connection
- Computer
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Step 1
Own a qualifying hybrid vehicle. Ask the dealer or check the IRS Web site (see below) for a list of qualifying vehicles and tax credits available.
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Step 2
Keep track of documents. You'll be claiming your deductions on your tax return, so be able to prove it if you get audited.
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Step 3
Deduct your taxes for "clean fuel." If you purchased your hybrid vehicle before 2005, you can write in this deduction on your 1040 tax return form. Simply write in the amount along with the words "clean fuel" on line 36.
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Step 4
Claim the hybrid income tax credit. This is different than the "clean fuel" deduction and is intended for those who purchased a new vehicle after 2005. For this credit, fill out the amended 1040X when you file your taxes.
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Step 5
Talk to your insurance company. Or shop around. There is a growing trend of insurance companies offering discounts of up to 10 percent for owners of hybrid vehicles.
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Step 6
Research local incentives! (See Resources below.) Ask your state and local governments. Also, check with your local DMV to see if you are eligible to use carpool lanes.
