The cost of owning a hybrid vehicle has become even more attractive. Buyers of the Ford Escape Hybrid and Mercury Mariner Hybrid now will realize significant tax savings. Ford put the first SUV hybrid on the road today – the Escape Hybrid – and plans to sell 250,000 hybrids a year by 2010.

Owners of an Escape or Mariner Hybrid purchased before January 1, 2006 are eligible for up to a $2,000 tax deduction, reducing their taxable income for an after-tax savings of up to $700. But customers buying one of Ford’s hybrids this year will benefit even more with a new sliding scale tax credit that can be used directly against the amount owed to the IRS.

U.S. Treasury Secretary John Snow today announced the issuance of IRS guidance regarding the tax credit for hybrid vehicles. The credit, which was enacted by the Energy Policy Act of 2005, may be as much as $3,400 for those who purchase the most fuel-efficient vehicles.

Ford expects buyers of the Escape Hybrid and Mercury Mariner Hybrid to be eligible for a credit of $2,600 for two-wheel-drive versions and $1,950 for four-wheel-drive models. Hybrid buyers are encouraged to review state or local laws to determine whether there are further tax incentives related to hybrid ownership. In addition, Congress recently approved a new law that allows states to provide owners of hybrid electric vehicles access to High Occupancy Vehicle lanes.