A purchaser of a hybrid passenger automobile in 2005 can qualify for a federal income tax deduction of up to $2,000. Beginning in 2006, the deduction is replaced by a tax credit of up to $3,400.  A credit is usually more advantageous than a deduction because a tax credit is subtracted dollar-for-dollar off the bottom line of your federal tax bill, while a deduction simply reduces taxable income. For a complete list of the certified vehicles, go to http://www.irs.gov/newsroom/article/0,,id=104549,00.html

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