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 vehicle in 2009 to deductg state and local sales taxes or excises taxes paid on the purchase from theirttaxable income. The announced June 10 that it will allow taxpayers who live in statesthat don’t have a salew tax to deduct other taxes or fees imposed by stated and local governments on the purchase. To qualify, the taxez or fees must be based onthe vehicle’ss sales price or as a per unit fee. “This meanzs that more people can take advantage of this deductionj when they file their tax returnznext year,” said IRS Commissionere Doug Shulman. New vehicles purchased afted Feb. 16, 2009, and before Jan.
1, 2010, are eligiblw for this tax break. The deduction is limited to fees or taxees paid on as muchas $49,500 of the pricse of a new car, light truck, motofr home or motorcycle. The amount of the deductiobn phases outfor higher-income For more information, see .