Now might just be the time to go get that new vehicle you’ve been eyeing.

Thanks to the American Recovery and Reinvestment Act of 2009 people purchasing new cars, light trucks, motor homes and motorcycles will get a tax deduction on vehicles up to $49,500 through the end of 2009. The deduction will be phased out for joint filers with a modified adjusted gross income between $250,000 and $260,000 and other taxpayers with modified adjusted gross incomes between $125,000 and $135,000.

The deduction is available whether a taxpayer itemizes deductions on Schedule A or not.

A hang up is that any vehicle purchased before Feb. 17 of this year is not eligible for this special deduction.

“Obviously, anybody buying a new car can take advantage of this,” Larry Battison from Battison Auto Group said. “I’m personally not dealing with the people that are buying cars on an everyday basis like the salesmen and general mangers are, but I’m sure this has encouraged people that have been thinking about buying a new car.”

However, Battison said that it takes more than a tax break to get people out buying.

“If someone were thinking about buying a new car I think this would push them over the edge,” he said. “I don’t think there is a downside to this. Any time you give a person a tax break for buying something it is a good thing.”

Auto sales at Battison dealerships have been down about 25 percent, Battison said, which is a better number than what is being reported in other parts of the nation.

“I’m optimistic that this recession isn’t going to last long,” he said. “The economy here isn’t as bad as the national media makes it out to be.”

Brandon Armstrong, the finance director at Byford Pontiac, Buick and GMC in Chickasha said that he hasn’t noticed anyone using the deduction yet.

“I don’t think it is out there enough for people to know about it,” he said.

Armstrong said that he doesn’t know exactly what the amount of the tax break would be if someone were to use it.

“We don’t really know what it would be,” he said. “It is going to do what the (mortgage reduction) has done for the real estate market. The housing market has already seen an increase. People need to take the benefit of this program.

Taxpayers who make qualifying new vehicle purchase this year can estimate their deduction with the help of IRS Publication 919, “How Do I Adjust My Withholding?” Worksheet 10, lines 10a to 10k take into account purchases above the $49,500 limit, as well as the income phase-outs.

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