President Obama Signs Auto Tax Deductions into Law
Yesterday, President Barack Obama signed into law the American Recovery and Reinvestment Act of 2009. The new law contains a provision designed to entice auto consumers back into vehicle showrooms. This provision applies to eligible purchases between February 17, 2009 and December 31, 2009. Qualifying consumers may now deduct:
? State motor vehicle sales taxes
? Local motor vehicle sales taxes
? Motor vehicle excise taxes
Consumer Qualifications:
? Individual taxpayers whose adjusted gross income is less than $125,000 per year
? Joint-filers whose combined adjusted gross income is less than $250,000 per year
? Itemizers and non-itemizers who may deduct taxes “above-the-line” on their federal tax returns
Eligible Vehicles:
? All new model year vehicles currently on dealers’ lots that have no prior purchase history
? New passenger cars and light trucks retailing up to $49,500 may collect full tax deductions. For
  all vehicles above this price, consumers may deduct sales taxes on the first $49,500
? The vehicle must weigh less than 8,500 pounds total