Honda Car Forum

Customers who purchase a new 2007 Honda hybrid or natural gas vehicle may be
eligible for federal tax credits ranging from $1,300 to $4,000 when they file
their tax returns for the year in which it was purchased, American Honda Motor
Co., Inc., announced today. The announcement is the result of a ruling by the
Internal Revenue Service (IRS), which calculated the tax credits based on the
Energy Policy Act of 2005 passed by Congress last year. Honda's 2007 Civic
Hybrid, Civic GX and Accord Hybrid are all eligible for the federal government's
tax credits.

The federal tax credits are as follows:

Additionally, buyers of the natural gas vehicle home refueling appliance named
"Phill" are also eligible for up to a $1,000 tax credit. Phill allows
consumers to refuel their natural gas Civic GX from home at a much lower fuel
cost than gasoline.

Various limitations to the credit may apply, depending on the specific circumstances
of the customer, and Honda is encouraging customers to contact the IRS or a
tax advisor to determine if and how the tax credit will apply to their vehicle
acquisition. Customers are also encouraged to contact the IRS at www.irs.gov
for information on hybrid and natural gas tax credit amounts applicable to Honda's
new 2005 and 2006 model year hybrids and natural gas vehicles purchased during
2006.

"The federal tax incentives reward consumers who seek the highest levels
of environmental performance from their vehicles," said John Mendel, senior
vice president of American Honda. "Honda continues to be a leader in producing
vehicles that set the standard for fuel economy and low emissions."

Honda was the first automaker to sell a hybrid vehicle in the U.S. with the
Insight in December 1999. It launched its second hybrid vehicle, the Civic Hybrid,
in March 2002, followed by the first-ever V6-powered hybrid, the Accord Hybrid,
in December 2004. Additionally, Honda announced that in 2009 it will introduce
another hybrid model priced below the Civic Hybrid.

Honda is currently the only manufacturer to market a natural gas passenger
car nationally to fleet operators and to consumers in the states of California
and New York. The home refueling appliance, "Phill" can also be
purchased in conjunction with the natural gas powered Civic GX at certain California
and New York Honda dealers.

For more information or downloadable high-resolution images of the hybrid,
natural gas models and other Honda vehicles, please visit www.hondanews.com.
Consumer information is available at www.honda.com.