Car Buyers Economic Stimulus Package In Detail

In order to stimulate the economy and aid troubled American automakers Ford, Chrysler, and General Motors, incentives were added to the tax code to encourage car buying.

Between February 17, 2009 and December 31, 2009, anyone who buys a new vehicle will be able to deduct state, local, and excise taxes on $49,500 of the purchase price of the vehicle. This “above the line” tax deduction applies to:
•foreign
•domestic
•cars
•light trucks
•motorcycles
•motor homes (gross weight less than 8,500 pounds)

Sales tax on leased vehicles isn’t included in this economic stimulus incentive.