'US Treasury Extends New Car Tax Deductions'

US Treasury Extends New Car Tax Deductions

By Auto Bots at 06/14/09 06:56

The US Treasury's program previously only offered a tax break to those people living in states that has a sales tax, but in a recent statement it said it will now expand the program covering residents in states without a sales tax.

The American Recovery and Reinvestment Act of 2009 (ARRA 2009) allows taxpayers to deduct state or local sales and / or exercise taxes paid on new vehicle purchases made between the months of February 16th, 2009 and January 1st, 2010.

“This tax deduction not only increases support for the auto industry as it seeks to rebuild, but also puts money back into the pockets of hard-working Americans,” said Neal Wolin, the deputy treasury secretary, during an interview with Automotive News.

“Building on the Recovery Act, the Treasury Department is taking steps to make sure every American, in every state, qualifies for a tax deduction when purchasing a new car.” he added.

In another news, Obama's auto task force stated that Chrysler and General Motors will not be receiving any more federal funds. This is amidst the rumors that the two automakers will still be given help by the government even after entering Chapter 11.

Chrysler has already emerged from bankruptcy after filing for it last April 30. GM on the other hand is still down with Chapter 11 but rumors ar strong that they will be out of it as early as August 1.

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