Tax Credit for Fuel Efficient Vehicles

[Sloose]

Excuse my ignorance. I am from New Jersey, where ignorance is bliss:

I bought my TDI to save myself oodles of money in fuel costs (i drive 65 miles each way 4x a week to work). I previously had a Dodge Dakota 4x4 V8 that averaged 16mpg. My average fuel bill a week averaged 130-150$. My fuel bill has plummetted to $32 a week with my A5 TDI.

I have heard 'rumors' (and by rumors I mean the 7oclock news - which is about as trustworthy here in the NY area as the tabloids) that diesel cars are eligible for a 'Fuel Efficient Vehicle' tax break. I am a homeowner and am interested in this tax break - but I have read a few threads on here and I haven't been able to make heads or tales of it.

My questions:

1) Does my august 1, 2005 purchase of a 2005.5 Jetta TDI, with an EPA fuel economy rating of 43mpg highway make me eligible for a supposed 'Fuel Efficient Vehicle' tax break? I live in The People's Republic of NJ, where we are mostly liberal to the point of communism, but not the entirely communist state of California, if that makes a difference.

2) How do I apply for said tax break - is it merely going to be a schedule on my 1040?

3) I read some posts about deducting my sales tax, etc etc. I'm confused. I am mildly intelligent but some enlightenment would be greatly appreciated.

That being said I love getting 47mpg driving to work. Not filling up my gas tank every 2 days: priceless.

TIA.
Jim
05.5 Reflex Silver MT5 pkg 1 TDI 8000miles

 

[StElmo]

1) No, from what I've read the vehicle is suppose to be purchased after 01JAN06. Even then I don't think VW qualifies because of NOx and particulate emmissions.

2) Can't because of the reason above.

3) Itemize your taxes (1040A vice the 1040EZ) this year and claim sales tax, it's your last year to do so. You own a house so you should be using the 1040 Schedule A anyways. I'm not a CPA and I recommend finding a good one to help you get/keep the money you rightfully earned. No reason why your tax dollars should keep going to social programs to help a select few if those dollars can come back to you.

 

[Sloose]

I am itemizing anyway- but since when can you deduct sales tax on new cars?

 

[lildevildee]

See here.

 

[Sloose]

why thank you. Much appreciated.

 

[WillR]

Thanks also! So far I bought an 06 Jetta, 05 RV (much more then Jetta) and getting ready to start a lease on a 06 Dodge Truck (also diesel). Plus I pay 9$ sales tax on each lease payment on the truck I now have so this might add up to more then my state income tax!