The cash for clunkers automobile buying program is a significant tax relief for car shoppers and you don’t have to fire up your old rust-bucket to qualify. As part of the federal stimulus effort, the IRS is allowing this year’s buyers of new vehicles to claim local sales taxes as a deduction o 2009 federal returns. For instance, in Monroe County (Rochester NY area), that is an 8% break or $2,400 on a $30,000 new car.
The deduction is limited to the first $49,500 of the price, and the relief applies to new cars, light trucks, motorcycles and motor homes. Vehicles weighing 8,500 pounds or less qualify; there is no weight restriction on motor homes.
New Vehicles must be purchased after February 15, 2009 and before December 31, 2009 to qualify.