Are you still thinking about purchasing a new car even though you missed out on the Cash for Clunkers program? Well, there is still some good news – potential new car buyers can still claim a 2009 federal tax credit on newly purchased vehicles up until December 31, 2009.

The “money back for new vehicle purchases” deduction, through The American Recovery and Reinvestment Act of 2009, is not an itemized deduction, said Sue Hales, IRS spokesperson for Illinois.

“Everyone can take this deduction,” Hales explained. “Most deductions you have to itemize.”

WHAT VEHICLES QUALIFY FOR THE IRS AUTO TAX CREDIT PROGRAM?
The tax credit is available for the purchase of NEW cars, motorcycles and light trucks. 

HOW IS THE TAX CREDIT APPLIED?
The tax credit applies to taxes and fees paid on the first $49,500 of the car purchase.

WHO QUALIFIES FOR THE IRS AUTO TAX CREDIT PROGRAM?
Joint tax return filers with modified adjusted gross incomes of $260,000 or less
Individual tax return filers with modified adjusted gross incomes of $135,000 or less

With a few months left in 2009, taxpayers can take advantage of other federal tax credit incentives including:

• First-time homebuyer credit for people who purchase in 2009, up to $8,000
• Education benefits
• Enhanced tax credits for the tax years of 2009 and 2010, including new details to the additional child tax credit and earned income tax credit

For more information go visit irs.gov