• Purchasing a new car in 2009 gave taxpayers a deduction on their taxes.Barry Austin Photography/Photodisc/Getty Images
  
  In 2009, the American Recovery and Reinvestment Act allowed taxpayers to deduct the state, local sales and excise taxes paid on a qualified new motor vehicle on their tax return. This deduction expired in 2009.
  
  

Definition

• Qualified motor vehicles were defined as new cars, motor homes, motorcycles or light trucks in which the purchaser was the first owner of the vehicle.
  
  

Time Limitations

• This deduction was in effect from Feb. 17, 2009 to Dec. 31, 2009, and only good for the taxpayer's 2009 tax return.
  
  

States Without Sales Tax

• Taxpayers who purchased qualified motor vehicles in states without sales tax were eligible to deduct other taxes and fees imposed by the state or local government. Those taxes and fees were based on a per-unit fee for the vehicle or the vehicle's sales price.
  
  

Maximum Vehicle Price

• The deduction was limited to the taxes or fees on a maximum sales price of $49,500 per vehicle.
  
  

Maximum Income

• Higher-income taxpayers were exempt from this deduction. The deduction was phased out for individual filers whose modified adjusted gross income was $125,000 to $135,000 and for joint filers making $250,000 to $260,000.