If you did not receive our fall newsletter, you missed this summary of the 2009 individual federal tax changes:

One of the important changes allows for individuals to increase their sales tax deduction on the purchase of a qualified new motor vehicle. The motor vehicle must be purchased between February 17, 2009 and December 31, 2009.  A qualified motor vehicle includes a passenger automobile, light truck, or motorcycle, the original use of which begins with the purchaser.  There is a weight limitation and a maximum deduction that is allowed. The new deduction can increase the amount of your standard deduction or can be used as an additional itemized deduction.

The new law also increases the energy tax credit for homeowners who make energy efficient improvements to their existing homes.  The new law increases the credit rate to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 for improvements placed in service in 2009 and 2010.  The credit applies to improvements such as adding insulation, energy efficient exterior windows, and energy-efficient heating and air conditioning systems. The Energy Star website has more information on qualifying items.

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