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Motorhome buyers get tax incentive

Buy a new motorhome through the end of 2009 and you can deduct a portion of the sales tax or excise tax on your federal taxes, if you meet income criteria.

The deduction provision is included in the American Recovery and Reinvestment Act, the $787-billion stimulus legislation signed into law Feb. 13 by President Barack Obama.

Individuals with an adjusted gross income of up to $125,000 are eligible for the deduction. Joint filers with an income of up to $250,000 are eligible.

Customers can deduct the sales tax paid on the first $49,500 of the purchase price. Thus, someone who purchases a $50,000 motorhome or a 150,000 motorhome, in a state that has a 7.5 percent tax rate, could deduct $3,712 from next year's taxes.

The offer ends Dec. 31, 2009.

A prior version of the Senate-passed stimulus package applied only to passenger automobiles and light trucks. RV manufacturers in Indiana lobbied for the tax provision for motorhomes, with the support of two Indiana Congressmen.

The provision does not apply to trailers or towables.

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