Vehicle Purchases Sales Tax Deduction Individual taxpayers who purchased a new motor vehicle may be able deduct the state or local sales or excise taxes they paid on the purchase price per vehicle.  New Hybrid, Electric, or Diesel Vehicles Several special new tax credits are available for 2010 if you bought a brand new car, light truck, motorcycle or RV during the year. These tax credits apply to vehicles purchased or placed in service on or before December 31, 2010. The credits are only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit. Even though a manufacturer has certified a vehicle, a taxpayer must meet the following requirements to qualify for the credit: The original use of the vehicle commences with the taxpayer. The vehicle is acquired for use or lease by the taxpayer, and not for resale. (The credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.) The vehicle is used mostly in the United States. The vehicle must be placed in service by the taxpayer after December 31, 2005 and must be purchased on or before December 31, 2010.    For additional information and a list of qualifying vehicles please click on the following links: Fuel Efficient Vehicle Tax Incentive Information Center: www.fueleconomy.gov/feg/taxcenter.shtml Federal Tax Incentives (United States): www.hybridcars.com/federal-incentives.html     (Information courtesy of the U.S. Department of Energy and IRS.gov)