06/21/09 2009 Automobile TAX Credit Deduction for State Sales Tax and Excise Tax on Certain Motor Vehicles – For vehicles purchased on or after February 17th consumers can take an above the line deduction from their Federal income tax returns for state and local sales or excise taxes levied on the purchase of a new vehicle. The deduction generally applies to vehicles having no more than 8,500 pounds of gross vehicle weight. This new deduction has two limitations: • Purchase Price: The deduction is only available to the taxes attributable to the first $49,500 of the purchase price.• Income: The deduction is phased out for single customers with modified adjusted gross income of more than $125,000 or joint-filers making more than $250,000 a year. Because of the income limitations each consumer’s situation will vary.