TORRANCE, Calif, U.S.A., November 28, 2006 – 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. 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.

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.