How the 2009 New Car Tax Credit Works
Part of the “American Recovery and Reinvestment Act of 2009”
On February 17, 2009 President Obama signed the American Recovery and Reinvestment Act of 2009.
What Taxes are Deductible?
¡ State Motor Vehicle Sales
¡ Local Motor Vehicle Sales
¡ Motor Vehicle Excise Taxes
What Customers Qualify for the Deduction?
¡ Individual Customers with modified adjusted gross income of less than $125,000 or joint-filers making less than $250,000 a year in 2009 would qualify for the deduction.
¡ Deductible as an “above the line” (for itemizers and non-itemizers) deduction on federal tax return. You may take it regardless of whether you itemize other deductions on your tax return.
Effective Date
¡ New vehicle purchases shall apply to purchases on or after the date of enactment (February 17, 2009) until December 31, 2009.
What New Vehicles Qualify for the Deduction?
¡ Any new vehicle under 8,500 pounds gross vehicle weight.
¡ New vehicles of any model year – when the original use commences with the taxpayer.
¡ Any vehicle sold for under $49,500 qualifies for the full deduction. Consumers may deduct sales taxes on the first $49,500 of any vehicle sold above this price.
How to Claim the New Car Tax Credit.
¡ You will receive the credit when you file your 2009 taxes.
Adapted from the National Automobile Dealers Association Office of Legislative Affairs.
THIS IS A GENERALIZED SUMMARY. Tax savings will depend on one’s individual tax rate. For more specific information on eligible customers, taxes and applicability, dealers are encouraged to consult with an accountant or tax professional.
Volkswagen's 50-State Compliant Touareg TDI Arrives in Dealer Showrooms in May
--Buyers eligible for a $1,150 Federal Tax Credit
HERNDON, Va., April 20, 2009 /PRNewswire via COMTEX/ -- Volkswagen of America, Inc. announced today the all-new Touareg TDI will be available in dealer showrooms in all 50 states this May. Value priced at $42,800, the Touareg TDI is the lowest priced diesel SUV currently available in the marketplace. Purchasers of the 2009 Touareg TDI are eligible for a $1,150 Federal Income Tax Credit. The Internal Revenue Service has issued a certification letter affirming that the Touareg TDI qualifies for the Advanced Lean Burn Technology Motor Vehicle Federal Income Tax Credit. "The $1,150 tax credit provides an even greater value to the upcoming Touareg TDI," said Mark Barnes, COO, Volkswagen of America, Inc. "All of our clean diesel vehicles offer consumers the fuel efficiency they're looking for while providing power, utility, performance, safety and excellent value. The Touareg TDI is an excellent addition to our clean diesel model line." The Touareg TDI showcases the best of both worlds, an alternative fuel Sport Utility Vehicle that provides fuel efficiency and go anywhere driving capability. Touareg TDI meets the most stringent emissions standards of all 50 states. EPA estimates the Touareg TDI's fuel economy at 17 city and 25 highway. At 25 miles per gallon on the highway the Touareg TDI provides better fuel efficiency than many hybrid SUVs. Also standard for 2009 is Volkswagen's Carefree Maintenance Program. With this program there are no charges for the scheduled maintenance described in the vehicle's maintenance booklet for the length of the New Vehicle Limited Warranty -- three years or 36,000 miles, whichever occurs first.
