Treasury Expands Vehicle Tax-Deduction Program
Car buyers in states without sales tax now have tax-deduction benefits, thanks to expansion of a Treasury Department program meant to bolster new-vehicle sales.
The plan is part of the American Recovery and Reinvestment Act of 2009, which enables taxpayers who buy new cars, light trucks, motor homes, and motorcycles to deduct their sales tax. In states without sales tax, buyers can deduct other fees or taxes imposed by state or local governments.
The states without sales tax are Alaska, Delaware, Hawaii, Montana, New Hampshire, and Oregon.
To qualify for the deduction, the vehicle must be purchased from Feb. 17 through yearend.
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