Vehicle Purchases Sales Tax Deduction Individual taxpayers who purchase a new motor vehicle in 2009 after February 16 can deduct the state or local sales or excise taxes they paid on the first $49,500 of the purchase price per vehicle. Qualifying motor vehicles include new passenger automobiles, light trucks (GVW<8,500), motorcyles, and motor homes. This tax break is available to individuals regardless of whether or not they itemize. In states without a sales tax, other taxes or fees can qualify if they are assessed on the purchase of the vehicle and are based on the vehicle's sales price or as a per unit fee. The deduction is reduced when modified adjusted gross income reaches $125,000 for single filers and $250,000 for joint filers. For additional information please click on the following links to the IRS website: Special Sales Tax Deduction for Car Purchases Available through End of 2009: www.irs.gov/irs/article/0,,id=214016,00.html Car Sales & Excise Tax Deduction Questions & Answers: www.irs.gov/newsroom/article/0,,id=211310,00.html 7 Facts About the New Sales Tax Deduction:  www.irs.gov/newsroom/article/0,,id=206633,00.html   Hybrid Vehicles (Information courtesy of Jennings Advisory Group, LLC & Taxspeaker.com) New hybrid vehicles purchased in 2009 may qualify for the hybrid vehicle credit, even if purchased by a business. Althought the credit for Toyota, Lexus and Honda all expired before 2009, hybrids sold by other manufacturers still qualify. Ford hybrids purchased before 4/1/2009 received 100% of the stated credit, purchased from 4/1/09 - 9/30/09 receive 50% of the credit and those purchased after 9/30/2009 receive 25% of the credit through 3/31/2010. All other hybrid vehicles still receive the full credit.                                                                                                                                                                                  For additional information please click on the following link to the IRS website: Qualified Hybrid Vehicles: www.irs.gov/businesses/corporations/article/0,,id=203122,00.html   Lean-Burn Vehicles Purchasers of advanced lean burn diesels also qualify for a little-known credit. For more information, please click on the following link to the IRS website: Qualified Advanced Lean-Burn Technology Vehicles: www.irs.gov/businesses/corporations/article/0,,id=203912,00.html