Hi Friends,

Lately, I've been receiving many phonecalls and inquiries about the stimulus package signed by President Obama and some important information about the tax savings when buying a new vehicle.  In response, I would like to share with you of some information provided by the National Automobile Dealers Association Office of Legislative Affairs about the American Recovery and Reinvestment Act of 2009.  On February 13th, 2009 the House of Representatives approved the bill by a vote of 246-183 and the Senate passed the package by a vote of 60-38.  This is the consumer auto incentive included in the final stimulus bill (H.R. 1) and became effective February 17th, 2009.

1.  What Taxes are Deductible?
   *  State Motor Vehicle Sales
   *  Local Motor Vehicle Sales
   *  Motor Vehicle Excise Taxes

2.  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 itermizers and non-itemizers) deduction on federal tax return.

3.   Effective Date
    *  New vehicle purchases shall apply to purchases on or after the date of enactment (February 17, 2009) until December 31, 2009.

4.  What New Vehicle 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.

This is a generalized summary.  Tax savings will depend on one's individual tax rate.  For more specific information on applicablity and eligibility, please consult with am accountant or tax professional.  

Furthermore, please keep in mind that our California's local sales taxes and DMV licence fees are schedule to increase effective April 1, 2009.  

I hope the information was helpful.  Thanks.

Sincerely yours,

Don Fleming
General Manager/Owner of Valencia Acura
President of Santa Clarita Valley Dealers Association