Ford’s Fusion Hybrid, which boasts a class leading fuel economy rating of 36/41 mpg (city/highway) will qualify for a $3,400 tax credit – the largest such tax credit the federal government has ever given out.The same tax credit will also apply to the Mercury Milan Hybrid.

Ford is excited about this incentive and hopes it is enough to win over buyers who might have considered the initial cost of Hybrid ownership to be too steep.

“Hybrids are an important part of our strategy to deliver the best or among the best fuel economy
with all of our new products, and the Fusion and Milan Hybrids have set the pace for the company,
as well as our competitors,” said Derrick Kuzak, group vice president of Global Product Development at Ford. “We’re glad to see our government help promote these advanced, clean fuel-efficient vehicles to the
consumer.”

Ford has made huge strides with its Fusion Hybrid, posting significantly better fuel economy numbers than any of the competition. Much of that has to do with the new technology Ford has developed for its second generation hybrid system. The system includes: a smaller and lighter nickel-metal hydride battery that provides 28 percent more power than the outgoing battery; a regenerative braking system; a new hybrid system that can operate on pure electric energy up to 47 mph and throttle control that reduces airflow on shutdowns and thereby reducing fuel needed on restarts.

In total the new Fusion Hybrid boasts 119 patents and the result is a car that can drive 700 miles on a tank.

If you want the full tax credit be aware that it is only available to those who purchase a car before March 31, 2009. As of April 1st only half of that credit will be available. The amount will be further reduced in the fourth quarter of 2009.

As for Ford’s other models, the 2009 Escape and Mariner Hybrid FWD models qualify for a $3,000 tax credit, with 4WD models receiving a $1,950 credit. Owners of previous model-year Escape and Mariner hybrid models may also qualify for varying credit amounts from $1,950 to $3,000.

Official release after the jump:

For 2010, the Milan will be offered with the same revolutionary hybrid engine found in the new Ford Fusion. Both vehicles are rated at an EPA tested 41 mpg on the highway and 36 mpg in the city – besting the Camry by 2 and 6 mpg respectively.

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