Features > Save Money > Tax Credit for New RV Purchases
If you are thinking about buying an RV or new car for that matter, there are even more benefits right now than just stimulating the economy. You don't have to live in a state without a sales tax to benefit a little when you buy an RV this year. If you do buy your new RV or vehicle in a state without sales tax, you can even deduct some of the local taxes and fees to save even more.
The American Recovery and Reinvestment Act of 2009 provides a deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles through 2009. The deduction is available regardless of whether a taxpayer itemizes deductions.
It is for new buys after Feb. 17, 2009 and the deduction is limited to the tax on up to $49,500 of the purchase price of an eligible motor vehicle. So it may not cover the entire price of a big new RV but it certainly helps quite a bit. The deduction is phased out for joint filers with modified adjusted gross income between $250,000 and $260,000 and other taxpayers with modified AGI between $125,000 and $135,000.
And please note that you can then take advantage of some great energy credits and improve your RV with solar power as well. Solar credits are up to 30% on Federal now. I installed solar on my RV a few years ago and haven't needed the generator since. Plus it means you don't always need such an expensive campsite and can save more money on camping fees.
Adam | Jun 16, 2009 | Category: Money Savings
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