The American Recovery and Reinvestment Act permits taxpayers to take a deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles purchased from February 17, 2009 through December 31, 2009. The deduction is limited to taxes and fees paid on the purchase price up to $49,500 for eligible vehicles. The deduction is reduced or eliminated for joint filers with modified adjusted gross income between $250,000 and $260,000 ($125,000 and $130,000 for other filers).