Consumer Auto Incentive Included In The Final Stimulus Bill

PREMIER SUBARU CLIENT ADVISORY
February 17, 2009

CONSUMER AUTO INCENTIVE INCLUDED IN FINAL STIMULUS BILL (H.R.1)

AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009

Effective February 17, 2009, President Obama signed the American Recovery and Reinvestment Act of 2009. Incorporated therein is the Consumer Auto Incentive.

What Taxes Are Deductible?
- State Motor Vehicle Sales
- Local Motor Vehicle Sales
- Motor Vehicle Excise Taxes

What Customers Qualify For The Deduction?
- Individual customers with modified adjusted gross income of less than $125,000 or joint-filers making less than $250,000 a year in 2009 would qualify for the deduction.
- Deductible as an “above the line” (for itemizers and non-itemizers) deduction on Federal Tax Return.

Effective Date:
- New vehicle purchases shall apply on purchases on or after the date of enactment (February 17, 2009) until December 31st, 2009.

What New Vehicles Qualify For The Deduction?
- Any new vehicle under 8,500 pounds gross vehicle weight (all Subaru vehicles are eligible).
- New vehicles of any model year – when the original use commences with the taxpayer.
- Any new vehicle sold for under $49,500 qualifies for the full deduction. Consumers may deduct sales taxes on the 1st $49,500 of any vehicle sold above this price.

THIS IS A GENERALIZED SUMMARY. For more specific information on eligible customers, taxes and applicability, consumers are encouraged to consult with a qualified tax attorney or professional.