clunker bill

It was signed into law on June 24th.

Program runs from July 1, 2009 to November 1, 2009, but the full program rules won't be available until July 24th.

-- Look it up on Google. It can be misleading. You get nothing if you itemize your deductions and deduct state sales tax instead of state income tax. Also, you get a "deduction" not a tax credit, so if you pay $ 2000 ;sales tax on the vehicle, and you are in the 25% bracket, your tax is reduced by

There are other limits--if your income is too high, you get nothing. Also, if you buy a $ 100,000 car there is a limitation based on price of the car.

I believe the tax deduction requires that the sale be completed by Dec 31,

Or you could move. Alaska has no state sales or income tax. Our local sales tax is capped at the 1st $1000 on a single item, so tax on a vehicle, new or used, doesn't go over $60.00. Hard to find enough to deduct on that.

Elizabeth Richardson

So much car-pork out there, hard to keep track. The clunker credit, which ended up with the nicer acronym "CARS", Car Allowance Rebate System, is a cash incentive of $3500 or $4500 for retiring a low-mileage vehicle and replacing it with a (slightly) higher-mileage one. There are some loopholes where you can get a credit even when buying an absolute gas hog. Your tax dollars at work! Details:

-Tad