While President Barack Obama no longer needs a new car, you still might.
So how will the $787 billion stimulus package help you buy a new car?
The new legislation will help car buyers to deduct the purchase's sales tax from taxable income.
In other words, for those new car buyers who live in states with sales tax, and that would be almost everyone, you'll be able to deduct the cost of the state sales tax from your taxable income.
According to USA Today:
"The average new car purchase price the first 11
months of last year was $28,280, and the average used car trade-in
value was $15,203, according to data from the National Automobile
Dealers Association. Paul Taylor, NADA chief economist, says states
typically tax the difference — $13,077 in this case.
A 7% rate, as in Denver, would be $915, Taylor says, meaning the deduction would reduce taxable income that much."
"We're happy to see the sales tax help, but credit is really the big issue," Chrysler President Jim Press.
The package also contains about11 billion to modernize and expand the nation's electric
power grid, and $2 billion to spur research into batteries for future
electric cars like the the new and hopefully soon to be unveiled Tesla Model S seen in the photo above.
This new all electric car developed by Tesla would directly benefit from the stimulus money spent on both the nation's electric grid, and the additional billions to delelope better automotive batteries.