Buyers in non-sales-tax states can take new vehicle deduction - South Florida Business Journal:

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The economic stimulus bill allows taxpayers who buy a new vehicl in 2009 to deducyt state and local sales taxes or excise taxes paid on the purchase from theirtaxable income. The announced June 10 that it will allowq taxpayers who live in statesthat don’t have a sales tax to deductf other taxes or fees imposed by state and locakl governments on the purchase. To qualify, the taxes or fees must be based onthe vehicle’s sales pric or as a per unit fee. “This means that more peopld can take advantage of this deduction when they file their tax returnwnext year,” said IRS Commissioner Doug New vehicles purchased after Feb. 16, 2009, and before Jan.
1, are eligible for this tax break. The deductionh is limited to fees or taxes paid on as muchas $49,500o of the price of a new car, lightf truck, motor home or The amount of the deduction phases out for higher-income taxpayers. For more information, see .