Looking to get a new car? Well the IRS announced that they will begin offering deductions to your taxes for purchasing a new passenger vehicle. Here are the highlights:

• Can deduct State, local and excise taxes on new car purchases.
• Purchase must be made between February 17th, 2009 and December 31st, 2009. One day before or after and no deductions.
• Includes light trucks, motorcycles, and motor homes.
• Deduction is available to filers regardless on how they handle their deductions (you don’t have to itemize to get the deduction).
• Income phase outs occur at MAGI’s of 125k-135k for Singles and 250k-260k for Joint filers.
• No mention of having to buy American or vehicle needing to be hybrid or electric (hooray for choice!).

If you actually pay taxes, earn less than the phase out income, and are in the market for a new car, then this is a good deal.  Just another way to take advantage of the current state of the economy. With taxable deductions and many manufacturers giving other incentive packages for purchasing, you could walk away with a great bargain.

Just remember that with all these incentive packages, the resale value of your car will be lower and have more competition when selling. Of course, all of you drive your cars into the ground anyway so the resale value doesn’t matter, right? Right?