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By Cliff Murphy, March 30, 2009 9:03 pm

After adding first time home owner tax credits, President Obama has approved a scaled back version of the Auto Assistance Ownership amendment in the final economic stimulus package. This amendment provides tax deductions for new vehicle buyers by giving them a federal-income-tax deduction on local sales and excise taxes. It enables taxpayers to buy now and get cash back later on their 2009 tax returns. It is applicable to any new vehicle purchased after Feb 17th 2009 (the date the stimulus bill was signed into law). Here are all the eligibility criteria, based on recent IRS press releases: 

The deduction is limited to the state and local sales and excise taxes paid on up to $49,500 of the purchase price of a qualified new foreign or domestic cars, SUV’s, light trucks, motor homes or motorcycles that weigh no more than 8,500 pounds. You can still buy a qualifying vehicle for more than $49,500, but will only get a tax deduction up to the specified limit. The deduction is only available to families making less than $260,000 (or $135,000 for single filers). It is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.  The new vehicle must be purchased on or after Feb. 17, 2009, and before Jan. 1, 2010, to qualify for the deduction. Purchases before Feb. 17, 2009, are not eligible for this special deduction.  The special deduction is available regardless of whether a taxpayer itemizes deductions on their return (Schedule A). The deduction cannot be taken on 2008 tax returns (even if they are amended or filed late).`

If you have additional questions that I have not answered in this post, send a question below and I will respond ASAP.  If there is a vehicle that your considering to purchase, chances are that Classic sells it!  Call me at (440) 205-6319 and I would gladly take the time to assist you. We ship vehicles throughout the USA.