The American Recovery and Reinvestment Act of 2009 included a new income tax deduction for state or local sales or excise taxes paid on qualifying 2009 motor vehicle purchases. This deduction is limited to taxes on the first $49,500 of the cost of the vehicle. Conversations with the IRS National Media Relations office verified that the deduction is limited to the first $49,500 of cost but is available for two or more vehicles.
Vehicles included are passenger autos, light trucks and motorcycles and motor homes. However, these vehicles must be new and their original use must begin with the taxpayer.
The deduction is available to itemizers and in addition to the standard deduction for those that do not itemize. This is the second itemized deduction that is allowed to non-itemizers for 2009. The other is a real property tax deduction that is treated as an increase in the standard deduction of $500 ($1000 for married filing joint status).
