Are hybrid cars too expensive for the Third World? While many consumers, investors, scientists, and environmental activists have focused on the importance of building hybrid cars for the U.S. market, it is in the emerging markets that the need for hybrids and other clean air technology may be even greater.

To encourage their employees to purchase environmentally-friendly hybrid cars, several companies reportedly are offering “rebates” or cash incentives to their employees in select areas to offset the purchase price of these vehicles. Just like other forms of compensation, these cash incentives are taxable compensation. Employers should include the cash incentive amounts in employees’ compensation reported on year-end Form W-2 earnings statements.