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August 24th, 2009
12:20 PM ET

'Clunkers' comes to an end but there's still cash out there

[cnn-photo-caption image= caption="The word 'clunker' is written on the windshield of a truck traded in as part of the federal Car Allowance Rebate System or 'Cash for Clunkers' program."]

Didn't have a clunker to junk? But still want to buy a new car? "Cash for Clunkers" has shifted into park, but there is still government money for you.

It was your Romans’ Numeral this morning but we wanted to tell you more about incentives still available for new car purchases.

The original stimulus break for new car buyers is still in effect. New car buyers can write off the state, local and excise taxes they pay on their 2009 tax return. Taxes vary by state, but on a $35,000 new car that's about $600 on average.

On new cars bought between February 16 and January 1, 2010 you can deduct state and local sales taxes paid on up to $49,500, depending on your income. The benefit phases out the higher up the income ladder you go.

If you are a clunker customer, remember the tax write off is good for you, as well. You keep the $3,500 or $4,500 cash refund and you can write off the state and local taxes on your return next year.

Where the auto industry goes from here is anyone’s guess. But there’s still a little money out there for you.

Filed under: Minding Your Business
soundoff (2 Responses)
  1. Mike Armstrong TX.

    The clunker thing came to an end before it started for us lower class people this is the age of money talks and bull patties walk.

    August 25, 2009 at 8:45 am |
  2. jay m

    The auto industry has been stimulated, many people have been called back to work. Buy American made.

    August 24, 2009 at 8:21 pm |