Mainers thinking of buying a new vehicle have until Dec. 31 to make their purchase if they want to take advantage of a tax credit that may not be available next year.
Taxpayers who buy a new car, light truck, motorcycle or motor home between Feb. 16 and Dec. 31 of this year can deduct the state and local sales and excise taxes paid on the first $49,500 of the purchase price.
“Congress enacted this provision for just one year,” said IRS spokeswoman Peggy Riley on Friday. “Many times, they will re-enact provisions that work well, but we don’t know yet.”
Riley also reminds Mainers that a new law that went into effect Nov. 6 extends for five months a first-time home buyer credit of up to $8,000 and also provides a new credit of up to $6,500 to established homeowners who purchase a new primary residence.
Riley said potential home buyers might be more motivated to make a purchase knowing they’ll have a little extra money to make needed repairs or updates.
Taxpayers who purchase homes by April 30, 2010, are eligible for the tax credits, which require a separate form that cannot be filed electronically. Income guidelines apply.
Members of the armed forces have an extra year — until April 30, 2011 — to buy a home and qualify for a tax credit.