Auto dealers: Take note of a provision in the new federal stimulus package. It could help attract car buyers.
The package includes a $2.3 billion tax break for buyers of new cars and trucks. Taxpayers will be able to deduct local and state sales taxes paid on new car purchases up to $49,500, according to AWARE, a nonprofit auto financing and education organization.
This tax break will cover the purchase of new cars – domestic or foreign — through the end of this year, AWARE notes. Eligible taxpayers must have an annual income below $125,000 for individuals or $250,000 for families.