On Thursday, the Treasury Department announced new rules that will help auto sales in six states;
- New Hampshire
Drivers in these states likely felt left out of the U.S. Treasury's old program that incentivized new auto sales by making it easier to deduct state sales tax on new autos. The aforementioned states don't tax auto sales.
To provide an economic incentive that is meaningful in these states, taxpayers will now be able to deduct other fees assessed and or associated with a new vehicle acquisition.
"This tax deduction not only increases support for the auto industry as it seeks to rebuild, but also puts money back into the pockets of hardworking Americans," Neil Wolin, Treasury's deputy secretary, said in a written statement.
The tax deduction is temporary; it applies to vehicles purchased before the end of the year. It applies only to taxes or fees assessed on the first $49,500 of a new car's value. Motorcycles, trucks and motor homes are also eligible. It begins to phase out for individuals with income above $125,000 and joint filers above $250,000, and is eliminated for individuals above $135,000 and joint filers above $270,000.
Editors at TheCarConnection note that there are dozens of excellent new models to choose from if you're in the market. Check out a recent posting on the Top 20 Selling Vehicles for May 2009 to see the hottest vehicles.