There Are A Couple Incentives For Individuals Wanting To Purchase A Vehicle

By Author: Jennifer McClelland
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If you are in the market for a new car and are in the United States, there are still a few deals for you that you may want to mull over before you plop down $30,000 on your new vehicle.

Obviously the biggest government encouragement this year was the Cash for Clunkers program, but just because you missed out on the program, that doesn’t mean that the government doesn’t want to aid in other ways (as long as you purchase your vehicle by December 31st anyway).

When you travel to a vehicle dealership, you are able to normally discuss a contract. Other than that, you can receive a sales tax tax deduction currently. When the federal stimulus law was accepted at the beginning of the year, anybody who bought a car following February 17th and prior to January 1, 2010 is able to get a sales tax deduction on their vehicle.

The downside is that the deduction is limited to the initial $49,500 of the car’s cost and the deduction phases out for persons who make over $125,000 a year or wedded people filing together $250,000. Once the individual makes $135,000 by himself ...
... or $260,000 for combined filings, the deduction is eliminated.

Certainly, you aren’t going to be getting a gigantic deduction from this, but one thing is better than nothing. For the reason that the deduction is only on sales tax, if a person lives in a state that does not have sales tax, the deductions can be used toward costs that the state or local governments require.

You can also receive a tax credit if you buy a hybrid. Popular cars such as the Prius arent eligible for the credit any longer, but 2009 models that are eligible include some cars from Chrysler, Dodge, Saturn and Mazda. The credits extend between $1,550 and $2,200.

For the 2010 models, the tax credits are a bit more restricted. They are obtainable to mostly Sport utility vehicle hybrids.
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